With the decrease in demand for passenger cars due to the economic slowdown the insurance majors are increasing their focus on health, fire and even home insurance policies. “Auto insurance had been our growth driver till last year but we have been compelled to revamp our strategy and cut down their dependence on auto insurance,” said a top official of a general insurance company.
“We will bring down our dependence on motor-insurance considerably, increase health insurance and grow fire, engineering and marine portfolio significantly. We aim to register profits continuously quarter-on-quarter in order to show profit for the whole financial year,” said Reliance General Insurance CEO Rakesh Jain.
“With the present economic scenario not very encouraging, the industry is following the same trend. Automobile sales have been battered over the past few months and it has affected motor insurance new business,” said Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance.
The figures clearly indicate the slump. In April 2013, the industry grew by 22% over the year-ago period. In May it became 16.3%, and in June it further went down to 14.96%. As per industry experts, motor insurance accounts for 46% of the total business of general insurers, health 26% and fire a distant third with 10%.
