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
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.