Bharti Axa General Insurance is hopeful of posting a growth of 45 per cent in its gross premium collection in the next financial year.
“With the declined risk pool system along with the possibility of an upward revision of premium in the commercial vehicles space, we hope to post a 40-45 per cent growth in premium collection during the next fiscal,” the private general insurer’s Chief Executive, Amaranath Ananthanarayanan said.
The Insurance Regulatory and Development Authority (Irda) had decided to dismantle third party motor pool system, replacing it with declined risk pool, effective next fiscal.
Under the third-party motor pool, all commercial third -party premia are pooled and losses arising due to commercial third-party motor portfolio are shared among all general insurance players as per their market share.
However, in the declined risk pool system, insurers will have the right to refuse a vehicle insurance, which will be subsequently insured from the declined pool.
About other focused areas in FY 13, Ananthanarayanan said apart from the motor space, health will be another target area for the company.
“At present, the motor and health insurance contribute about 90 per cent of the total premium collection. Going forward, our major focus will continue in these segments.”
According to Irda data, the premium collection by Bharti Axa rose around 58 per cent in the April-February period to Rs 774 crore compared to Rs 492 crore a year ago.
The firm has earlier said it aims to cross Rs 800- crore premium collection by end of the current fiscal.
The company is a joint venture between Bharti Enterprises and Axa Group of France in which 74 per cent stake is held by Bharti Group.
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