Kotak Life Insurance is in the process of expanding its presence in Gujarat by setting up 15 more branches across the state. | |
| The expansion has been planned to take the latest product from its stable, Kotak Smart Advantage', to the tier II and tier III cities in the state, which according to company officials are showing close to triple digit growth. |
| |
| Kotak Life has 27 branches in Gujarat and 110 across the country. The company is expecting the total number of policyholders to touch 350,000 lakh by March 2008, of which 18 per cent are from Gujarat. The expansion in Gujarat coincides with the company's application to the Insurance Regulatory and Development Authority (Irda) to reduce its risk premium by 20 per cent. |
| |
| "Gujarat is a high growth market and this is especially true of tier II and tier III cities in the state which is why we are concentrating on places like Gandhinagar and Godhra," said Gaurang Shah, MD of Kotak Life Insurance. He said the move to reduce risk premiums was aimed at tapping the rural markets and create more awareness for life insurance products among all segments of society. The company's current rural penetration is 24 per cent. |
| |
| By March 2008, Kotak Life Insurance will set up 75 new branches across the country. It is also expecting its cost ratio to decline considerably once this expansion is in place. From last year's cost ratio of 25 per cent, it expects to record a ratio of 21 per cent this year and bring it down to 18 per cent by 2009. "The company will break-even around the time when the cost ratio touches 15 per cent, which could be in the next three years," added Shah. |
| |
| Kotak Smart Advantage offers up to 100 per cent premium allocation from the second year onwards with guaranteed returns on the first year premium. |
| |
| Upcoming products in the next year would revolve around long- term savings besides a health product based on occurrence of an event. |
| |
|
| |
