Cholamandalam MS eyes 40% growth in Gujarat

Backed by the launch of its new brand identity, Cholamandalam MS General Insurance Company Limited (Chola MS), a joint venture between Murugappa Group and Mitsui Sumitomo Insurance of Japan, is eyeing a 40 per cent growth in gross written premium (GWP) in Gujarat.

From a GWP of Rs 135 crore from the Gujarat market, Chola MS expects to take it up to Rs 190 crore by end of financial year 2010-11, said S S Gopalarathnam, managing director Chola MS. Already, the company has a settlement-claim ratio of over 90 per cent.

"Gujarat is a significant market for insurance products and is strategically important for us. We generated a premium of Rs 135 crore in 2009-10 from this market and are aiming to grow the business by 40 per cent in 2010-11. We have a network of nine branches and over 300 agents in Gujarat alone. We would be expanding our agency base in Gujarat in the next quarter," said Gopalarathnam. The company will be adding 5-6 branches to the current nine branches in the state.

As part of its branding strategy, the company has developed a new logo through leading brand design agency Ray and Keshavan. Commenting on the launch, Gopalarathnam said, "Our new logo symbolises dynamism, solidity, scale and stability and is the right expression of our pan-Indian character.

The new Chola MS brand stands for trust and transparency that has been part of our ethos. Going forward, we shall be accelerating our journey towards customer centricity enabled by technology that offers convenience to our customers."

In Gujarat, Chola MS has also been a fore-runner in the Rashtriya Swasthya Bima Yojana (RSBY) scheme for the last two years where over 6.5 lakhs families below the poverty line in five districts have been offered health insurance for a sum insured of Rs 30,000.

The state contributes about 18-20 per cent to Chola MS' total premium business. With 113 branches and over 7500 agents across the country, the company is likely to achieve a GWP of Rs 950 crores in 2010-11.

Chola MS offers a wide range of products that include accident, engineering, health, liability, marine, motor, property, travel and rural insurance for individuals and corporate. The company achieved a GWP of Rs 785 crore in 2009-10.