The Hindu Business Line : Risk management is our strength: Bajaj Allianz

"We are concentrating on health insurance. We hope to achieve Rs 100 crore premium from the health segment this fiscal," says Mr Krishnamoorthy Rao.

Coimbatore , Aug. 26

BAJAJ Allianz General Insurance Company says that risk management has been its greatest strength. The company, which has managed to book underwriting profits from first year of operation, attributes its success to initiation of adequate control measures and adoption of the right tools for managing the risks.

Speaking to Business Line, Mr Krishnamoorthy Rao, Head (Underwriting), said the company introduced better claims control measures in every segment, be it motor, health or travel. "We are concentrating on health insurance. This is a growing market. About 8-10 per cent of our premium income is from health. We hope to achieve Rs 100 crore premium from the health segment this fiscal."

The company has formed an in-house health assessment team comprising qualified medical professionals and paramedical staff. "We have until now been working with third party administrators (TPAs). For better controls, we formed this team, who can interact with the hospital and try and fix the unnecessary procedures, if any," Mr Krishnamoorthy said.

He conceded that the premiums were high in the health segment because of low volumes and rising healthcare cost.

For motor, the company has gone to the extent of recruiting experienced service engineers for better claims control. "While the public sector general insurance companies leave it to the surveyors to assess the damage/loss, we have our own team of engineers. This has to a large extent helped in better claims control and in reducing the cost of servicing the policy," he said.

The insured list includes fleet operators as well. "The problem with most fleet operators is more in third party claims than own damages. Further, the delay in settling the claims adds to the cost by way of interest. We try and clamp down on such expenses," he said. Conceding that both health and motor cover are high-risk segments, Mr Krishnamoorthy said the company restricted itself from greater exposure in Kerala market, where the third party claims were high. "You cannot avoid taking a risk, but better controls and management is essential. We are in the process of educating the people of Kerala," he said.

"The cost of issuing a policy has fallen with the adoption of technology. It has also helped in bridging the time gap and has enabled the survey team upload the report directly into the system," he said in reply to a query.

Yet another potential area for exposure is the travel segment, he said and added the company regularly rolled out products/package.

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