Modest single-digit growth for its overall life insurance business notwithstanding, Bajaj Allianz Life Insurance is banking on 60-65 per cent growth in the micro-insurance segment.

According to Neeraj Maheshwari, Vice-President, Business Procurement and Financial Inclusion, Bajaj Allianz Life, the micro-insurance segment is expected to report a business of ₹350 crore this fiscal. In the first half of this fiscal it stood at ₹216 crore against ₹213 crore in the corresponding period last fiscal (FY15).

Traditionally, H2 is better for most insurance companies.

“We expect a high double-digit growth in the segment this year. It will be one of the fastest growing segments for the company,” he told BusinessLine .

Growth drivers

New regulations allow regional rural banks (RRBs), cooperative banks, societies and common service centres (CSCs) to sell micro-insurance products. According to Maheshwari, the company is looking to tie up with more regional rural banks, self-help groups and other microfinance institutions to sell its micro-insurance products.

At present, Bajaj Allianz has tie-ups with, among others, Bandhan Bank and Janalakshmi Financial Services. Its active partnerships, across MFIs, agencies and other institutions stand at 200. Plans are afoot to add another 60-odd partners by end of this year.

It, currently, has two products under the category and one more is expected to be launched soon.

Average sum assured varies between ₹25,000 and ₹30,000, while the the premium stands at around ₹2,000. In the case of term insurance, the premium varies between ₹100-150.

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