Reliance General Insurance is betting big on sale of health insurance products in the highly under-penetrated Small and Medium Enterprises (SMEs) as parts of its plans to achieve full-year profitability this fiscal.
"SME health cover is a big untapped opportunity with most small and medium enterprises in the country not providing health insurance cover to their employees. "Besides, there is hardly any awareness on the health cover in the SME segment. Our next focus arena is to service the SMEs," Reliance General Insurance Company (RGIC) CEO Rakesh Jain said.
SMEs are estimated to employ nearly 75 million people in the country and contribute 9-10% of India's GDP.
"Since SMEs are widespread and not so well-organised, we aim to tap into this through our agents. We are training and pushing our agents to look beyond the retail business and targeting some 10% business from SMEs and corporates.
"We have also created a specialised channel to meet and serve the requirements of SMEs," Jain told PTI.
"We want to specialise in sector-wise products and are talking with personnel in cement, IT and power sectors to understand their needs and create a development role for them. Hence, we have started to create a more risk-based approach to service different sectors," Jain said.
Currently, motor insurance accounts for 64% of the its total business, while health and fire account for 16% and 8%, respectively. Across the general insurance market, motor insurance accounts for 46% of the total business followed by health insurance at 26% and fire insurance at 10%.
"We aim to grow by more than 20% in FY14 and our target is to register profits continuously quarter-on-quarter in order to show profit for the whole year," Jain said.
The company reduced its full-year loss in last financial year 2012-13 to Rs 93 crore, from Rs 343 crore loss posted during the previous year 2011-12. It hopes to achieve full-year profitability in the current fiscal. (PTI)
Zee News, Sunday, Aug 11, 2013