Insurance Australia Group is increasing its presence in Asia including India in a bid to generate 10 per cent of its business from the region within four years. IAG aims to generate 10 per cent of its gross written premium in Asia by 2016, according to the group's CEO Mike Wilkins.
IAG underwrites around Australian dollar (AUD) 8 billion of insurance premiums each year and employs around 13,000 people.
IAG, which owns major Australian brands such as NRMA and CGU, has invested about AUD 720 million in five Asian countries, Wilkins was quoted on Tuesday by AAP report.
Through acquisitions and investments, IAG now has established businesses in Thailand and Malaysia, and is building its presence in India, China and Vietnam, he said.
In India, IAG has a joint venture with the country's largest lender the State Bank of India, SBI General Insurance Company. SBI owns 74 per cent of the total capital and IAG the remaining 26 per cent.
SBI General is in the process of setting up a unique multi-distribution model encompassing Bancassurance, Agency, Broking & Retail Direct channels. Bancassurance will be the major channel during the initial years, according to the information on the JV's website. "The Asian opportunity is here and now," Wilkins said.
"Over the past couple of years, we've quietly gone about our Asian strategy and are now getting real traction. We are entering an exciting phase of our Asian ambitions as we shift from a market entry focus to one of driving operational performance from our enlarged regional presence," he added.
General insurers in India feel the recent increase in premium rates of motor third party premiums has not been adequate. Through the General ...