Bajaj Allianz General Insurance Company Limited, one of India's leading private general insurance companies, reported a 50 percent increase in gross premium income to 12,850 million rupees (234 million euros) excluding service tax for its business year 2005-6, ending March 31. Net profit grew 9.8 percent to 516 million rupees (9 million euros).
Bajaj Allianz General Insurance is aiming for accelerated market penetration in future. "Going forward, the company's focus will continue to be on growth with underwriting profits, and preparing ourselves for the free pricing scenario from 2007 onwards," said Kamesh Goyal, CEO.
The company, a joint venture company between Bajaj Auto Limited, a leading Indian manufacturer of two- and three-wheeler vehicles and the Allianz Group, issued 3.9 million policies over the twelve-month period, the highest rate among private insurers. Its claim settlement ratio reached 93 percent.
India: Bajaj Allianz firms report growth in 2005-6
Allianz's joint venture companies with Bajaj Auto Limited in India demonstrated strong growth for the full fiscal year, thanks to continued expansion, renewed customer focus and low costs.
Bajaj Allianz Life wins new business
Bajaj Allianz Life Insurance, meanwhile, reported a 216 percent increase in new business premium to 505 million euros in its business year 2005-6. The company, which is now Indian's leading life insurance company, said its industry market share grew to 7.6 percent from 3.4 percent in the previous year. It aims to become India's first profitable life insurance company soon, by employing an innovative economic model and keeping costs low. It issued 777,492 new policies in fiscal 2005-6.
Bajaj Allianz Life Insurance is now based in 534 towns, compared with 293 towns in 2004-5. It employed 108,155 agents in its last fiscal year, more than doubling than 47,078 agents in the previous year.
Growth follows the company's refocus on customer needs, a program which started two years ago. "Our basic promise is 'Jaisi Jaroorat Vaisa Insurance' – insurance meeting the customers' needs," said CEO Sam Ghosh. "We focus on what customers want and not what we want to sell. We let customers decide which channel they are comfortable to buy from."
"Our end objective is to have satisfied customers and satisfied customers are drivers in the life insurance business more than anything else," continued Ghosh. "This focus has brought us so far so rapidly and we are sure this focus will help up maintain our leadership as well."
Bajaj Allianz Life Insurance is now based in 534 towns, compared with 293 towns in 2004-5. It employed 108,155 agents in its last fiscal year, more than doubling than 47,078 agents in the previous year.
Growth follows the company's refocus on customer needs, a program which started two years ago. "Our basic promise is 'Jaisi Jaroorat Vaisa Insurance' – insurance meeting the customers' needs," said CEO Sam Ghosh. "We focus on what customers want and not what we want to sell. We let customers decide which channel they are comfortable to buy from."
"Our end objective is to have satisfied customers and satisfied customers are drivers in the life insurance business more than anything else," continued Ghosh. "This focus has brought us so far so rapidly and we are sure this focus will help up maintain our leadership as well."
Diverse range of customers
The company has identified flexible products which are suitable for Indians' needs. It caters for more than 290 segments of consumers, stemming from diverse religious, cultural and educational backgrounds.
Bajaj Allianz Life Insurance recognizes that its average customers are looking for low-price products, such as its "6-in-1 Healthcare" product, with a premium of just 100 rupees (1.75 euros) per month. It also offers more sophisticated products for astute investors, as well as an ethical fund, which takes into account religious guidelines and environmental concerns.
It entitled its innovation of the year "Bajaj Allianz Banyan Tree". This expansion model reflects how a branch sets up small sibling satellites, which in turn grow into branches, in the same way that banyan tree branches start another tree when their branches touch the ground.
Bajaj Allianz Life Insurance recognizes that its average customers are looking for low-price products, such as its "6-in-1 Healthcare" product, with a premium of just 100 rupees (1.75 euros) per month. It also offers more sophisticated products for astute investors, as well as an ethical fund, which takes into account religious guidelines and environmental concerns.
It entitled its innovation of the year "Bajaj Allianz Banyan Tree". This expansion model reflects how a branch sets up small sibling satellites, which in turn grow into branches, in the same way that banyan tree branches start another tree when their branches touch the ground.
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
For further information
