Future Generali India Insurance Company Ltd (FGII) is expecting close to 20 per cent growth in the current financial year backed by a steady pick-up in demand, particularly motor insurance during the ensuing festival season and ramping up of distribution network. It had registered a growth of around 8 per cent in gross written premium at ₹4,210 crore in 2021-22.
With a gross written premium of ₹1,617 crore, motor insurance accounts for nearly 38 per cent of its overall premium collections during 2021-22. The crop, corporate and non-motor retail accounts for 20 per cent each of the company’s total gross written premium.
According to Anup Rau, Managing Director & CEO, FGII, the health insurance vertical is expected to grow faster at around 25 per cent.
“There is a revival happening in the motor business on the back of higher sales in vehicles. We expect close to 20 per cent growth at the overall company level,” Rau told BusinessLine on the sidelines of the launch of its comprehensive health insurance product - FG Health Absolute in the city recently.
Health insurance had witnessed a steep spike over the last two years due to the Covid-induced pandemic and rising awareness or need for having a health cover. It is now, however, witnessing a tapering of interest. However, it will still continue to grow faster due to the lower base, he said.
The company’s combined ratio stood at 108 per cent and solvency ratio was at 166 per cent during 2021-22.
Sales distribution network
The general insurer has been harnessing digital technology, improving distribution presence, getting deeper partnerships, including new bancassurance tie-ups during FY22 to ramp up distribution. It also introduced innovative, customised, personalised and intuitive products, tailored to the exact needs of customers, the company said in its latest annual report (2021-22).
The company has an association with approximately 120 banks and credit cooperative societies that serve through over 18,000 branches. This has strengthened its reach and enhanced distribution footprint in the country. With partnerships, the company intends expanding to reach out to remotest of places as well.
“We are constantly innovating products to target newer customers from different age groups. For instance, noticing a market gap and the need for a product that specifically targets the younger demographic, such as millennials and Gen Z, we came up with the Health Super Saver, a one-of-a-kind product that incentivises the young and healthy with an 80 per cent discount on the next premium for a claim free year,” the report said.
In FY22, it focussed on catering to micro-segments with unique lifestyle products such as cyber insurance and pet insurance and promoted them with cost-effective and scalable brand amplifications. It will continue to launch innovative products as well as products customised and tailored to meet the micro and hyper-segmented markets.