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With margins in corporate group insurance on the decline, non-life insurer Future Generali India has said that it is looking to increase the share of retail business, such as auto, health, personal accident insurance.
“Margins in the corporate business are thin, so we're looking to grow more in the retail segments. This year we will look to increase the share of the retail segment from 65 per cent to 70 per cent of our total portfolio,” Mr K.G. Krishnamoorthy Rao, Managing Director & CEO, Future Generali India Insurance, told Business Line .
In the current fiscal, the private insurer is targeting growth at 60 per cent, up from a total premium of Rs 612 crore collected in 2010-11 (sold 6.1 lakh policies). During this year, it will also infuse up to Rs 100 crore, taking its total capital base to about Rs 575 crore.
Future's distribution network
The strategy to concentrate on the retail business is also supported by fact that its largest shareholder, Future Group, operates a large network of retail stores and hypermarkets. This gives it access to a large distribution network at very low costs.
“The Future Group has more than 160 outlets, plus Big Bazaar sees about two crore footfalls a year. This is a big advantage for us. It's important for the branding of the company, distribution network, plus we can use the database,” said Mr Rao.
More branches
He further added that Future Generali, the three-year-old general insurer, is adding 10 more offices this year to its existing 68 branches. Currently, half of its business comes from motor insurance, while 18 per cent is health insurance and 12 per cent is cover against fire related damages. The rest is a combination of construction/engineering insurance, besides other specially-designed insurance products for events.
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