Future Generali eyes Rs 3,000 cr biz in 3 yrs: CEO

General insurer Future Generali India aims at a business of Rs 3,000 crore in the next three years with an expected growth rate of 15-20 per cent.
Riding high on the economic growth, the company expects gross domestic product (GDP) to expand at a higher rate which will create demand for insurance products.
"General insurance is basically close to how the GDP is growing. If GDP growth is good, it will help our industry. We are looking at 15-20 per cent growth annually over the next three years. Therefore, we are aiming to reach close to Rs 3,000 crore mark," K G Krishnamoorthy Rao, Managing Director and Chief Executive Officer, Future Generali India Insurance, told PTI.

"Last year, the general insurance industry witnessed a growth of around 13 per cent. This year, I believe it will be minimum 15-16 per cent", he added.
India's economy grew at 7.6 per cent in the last financial year.
Rao said there is movement in infrastructure projects which is a positive sign for the general insurers.

"If the industries are doing good, they will go for expansion and create more demand for insurance products. Disposable income of people will increase and they will buy insurance", he said further.
On government's nod to raise foreign direct investment (FDI) in insurance sector to 49 per cent, Future Generali Insurance said talks are on between the promoter group and the foreign partner to hike it to the maximum permissible limit.

"As of now, in our case it (FDI) is at 26 per cent, but the shareholders are now in discussion to increase it to 49 per cent. It is expected to be finalised over the next six months to one year time," he added.
"For us, 65 per cent of our business comes from retail products. So, we are trying to grow mainly on retail side and going forward we would like to increase it to 70 per cent in two years", Rao said.
Future Generali's rest of the business comes from corporate clients.
"One of the major challenges before the industry is

unhealthy competition which is bringing down prices. If you are pricing your products below the cost, naturally you incur losses and many of the products are in that phase. Due to this unhealthy competition, everybody wants to gain market share, which is not a good trend," Rao said.
He added this is a major concern and the industry needs to correct it. Besides, most of the insurance companies are underwriting losses and the profit is mainly coming from the investment income.
"Going forward, the investment income will also reduce as the interest rates are expected to come down. Therefore, the fundamentals of the business would be to generate underwriting fund."

He also highlighted the need to create more awareness on the retail side of the business. The General Insurance Council of India, along with regulator IRDAI, has in the past done a few media campaigns with products such as health, motor and home, he said.
Future Generali has also started an awareness programme in Tripura, he said, adding other companies are also doing likewise in different parts of the country.
Incorporated in 2007, FGII is a joint venture between India's biggest retailer Future Group and Generali of Italy. Generali commands a leadership position in Western European markets and has a significant presence in the Central Eastern European and Asian markets.