Page 44 - Insurance Times July 2016

client who buys a Car Insurance, can be offered a Health India comprises of the Motor Premium. However, the li-

Insurance, Home Insurance, Insurance for Business and ability arising to the Insurers due to the various provisions

Travel to name a few. of the Motor Vehicle Act 1988 bleeds the motor portfolio

of all insurers. The Third party claims under the TP premi-

5. Do you think regulations in case of brokers are ums are loss making to a large extent. The government

more stringent? has taken note of the same and the premiums have been

Ans. Brokers have the ability to scale the business to a increased steadily for the last 2-3 years. Such increase will

large level. If you see worldwide you will find broking make Motor Insurance business profitable for insurers and

houses in Fortune 500 companies. Insurance Regulator will also increase the reach of the product across the

“ Online business in Insurance is here to stay; people will “ country.
buy online insurance for convenience and competitive
pricing. The market studies suggest a huge upside in 8. Do you focus more on
online insurance business by 2020. Corporate Business or Re-
tail Business?

IRDAI understands the sensitiveness of this sector as we Ans. As I have shared earlier
deal with public money in case of Life insurance and Capi- that we have an advantage of being present in all spheres
tal Assets etc. in case of General Insurance. of the General Insurance business, our business pie is well
diversified and comprises of corporate as well as retail

Hence the regulations are stringent for all the stakehold- business. Number wise our business comprises of 55%
ers operating in this Industry including brokers. We believe corporate and 45% retail business. Such business mix makes
that with the passing of time, the regulations need to be our business stable and profitable.

looked at periodically and relevant changes should be

bought in with the sole motto of benefits to the customers 9. How far customers rely on online purchases?

and the people at large. Ans. Online business in Insurance is here to stay; people

will buy online insurance for convenience and competitive

6. What is your current revenue and target for pricing. The market studies suggest a huge upside in online

the next year? insurance business by 2020. We are well aware of the

Ans. We are growing at thrice the rate of Insurance Indus- change in trends in online business and have prepared our

try growth and all are set to have the first movers' advan- foray with our online portal www.121policy.com. We in-

tage in this Sun Rise Industry. We clocked a premium of tend to go live in a couple of months and are very excited

over Rs. 90 Cr in the year 2015-16. Our most important about the prospect.

advantage is that we are present in almost all spheres of

General Insurance. From niche businesses like credit Insur- 10. Any other things you would like to share?
ance and Liability Insurance to the mass products like Health
and Motor, we do it all. We expect to grow at a CAGR of Ans. There is a huge potential in this Industry as the pen-
50% in next 3 years. etration of Insurance business is negligible considering the
demography of India. The industry needs to attract the

7. Health and Motor are important portfolios in best of talent. The Insurance Industry in India is geared up
insurance but currently they are loss making. How to change its orbit and the ones who stay now will reap
do you view growth in this sector? the benefits in the future.

Ans. There is hardly any penetration of Health Insurance About Mr Mohata
in India as of now. Only a fraction of the population is
covered. IRDAI data suggests the Insurers have made a Mr. Mohata has worked extensively in marketing of
loss of 101% in health premiums in the year 2015-16. Financial Products in the retail segment. He is a strong
However, with growing awareness and rising healthcare Administrator with special skills in Data Analysis. Pres-
cost, there is a definite upside in Health Insurance in the ently he heads the departments of Finance, Administra-
coming years. tion and Operations apart from making his Own contri-
bution in Corporate Sales and Crisis Management in

Ideal Insurance Brokers.
Around 40% of the total General Insurance business in

44 The Insurance Times, July 2016