Iffco Tokio Hopes To Be No. Insurance Firm

"We aim to be the number one insurance company 20 years from now," goes the claim of Masahiko Watanabe, Asia region, marketing chief of IFFCO Tokio General Insurance company.

To work towards its target, IFFCO Tokio, the joint venture insurance company of IFFCO and Tokio Marine, is readying itself to launch its life insurance products in about another three months. IFFCO Tokio has registered Rs 5 crore non-life business last year and expects to grow at more than 30 per cent in the current fiscal.

The company has already procured licences for all its 40 products filed with the Insurance Regulatory and Development Authority. It has chosen till now to concentrate on non-life products.

"Now that we have made some progress in the non-life segment, we will make our foray into the life segment," said Atul Chandra, vice-president of the company.

"Our initial offerings will be plain vanilla products that will like other products have some optional riders attached to it. We will add specialised products at a later stage when we have tested waters in the life insurance sector in the country," said an optimistic Chandra.

The company is at present in the process of designing new products that will cater to specific needs of the average Indian.

"Products will have a savings component as well as an insurance component. Although insurance is looked upon as a tax-saving instrument, we will try and change the product image which will aptly cover the individual risks primarily and then fulfill his tax and other needs", he explained.

Meanwhile the company has entered into talks with automobile manufacturers for directly selling its non-life products through the network of the auto manufacturer. "Consumers will have the option of buying vehicle insurance at the retail outlet or dealership of the automobiles manufacturer. Vehicle licence being compulsory in the country, the consumers will be provided the insurance and the vehicle under one roof," explained Chandra.

Maruti Suzuki, among other car companies, has already publicly expressed interest in such tie-ups with insurance companies. Other volume manufacturers and dealers are expected to follow suit.

"We have also initiated dialogues with a few private sector banks for marketing our products," Chandra said. However, the fate of this plan would depend on the corporate agency norms that are due.