Reentry into Crop Insurance
Shriram General Insurance Company (SGIC) will reenter the crop insurance sector after a seven-year hiatus. The company, jointly owned by Shriram Group and Sanlam Ltd, aims to offer indemnity-based products alongside its existing benefit-based health insurance offerings.
Strategic Move
MD & CEO Anil Aggarwal cited state governments’ adoption of stop-loss insurance as a key factor for reentry. This model has insurers paying claims below 80%, while the government covers claims exceeding 110%. SGIC had exited crop insurance in 2016-17 due to unviability.
Focus on Uninsured Vehicles
SGIC is working with the Odisha government to bring uninsured vehicles under coverage, addressing the issue of 47% of India’s 40 crore vehicles being uninsured. This initiative aims to increase insurance penetration and generate GST revenue.
Financial Performance
In Q1 FY25, SGIC reported a 31% growth in gross written premium (GWP) to Rs 733 crore. Net profit rose by 17% to Rs 114 crore. The number of live policies increased to 62.9 lakh, and assets under management (AUM) stood at Rs 12,268 crore as of June 30, 2024.
