Cholamandalam may get 1mn policy holders

Despite detariffing affecting the insurance industry, Cholamandalam MS General Insurance is expecting to touch the one million policy holders mark from the present figure of 600,000 on the back of a 72 per cent growth in the first seven months this year.

The company is expecting the growth to come from the western region, especially from Gujarat where the number of branches are set to double from the present six in the next one year.

The company has recorded a renewal ratio of 85 per cent in Ahmedabad. Its new branches could come up at Kutch, Gandhidham, Vapi and Himmatnagar among others.

"We have grown over 100 per cent in Gujarat over the past one year due to high operational efficiency for policy issuances and mechanisms for quick and fair claims settlements, " said M Anandan, MD, Cholamandalam MS General Insurance.

Cholamandalam is expecting growth from both the commercial and retail segments which presently stands around 55 per cent and 45 per cent business for the company. However, with health products growing by 15 per cent, Anandan said he expected the retail segment to cross 50 per cent and eventually return 60 per cent profits as compared to 40 per cent from commercial.

Motor is also being looked at an important product with an industry growth of 45 per cent which makes it responsible for 75 per cent of the profits from retail insurance.

Presently, the company has a marketshare of around 7-8 per cent in the private insurance pie.

Overall, private players make up a 36 per cent of the market.