Dabur Cgu Life Launches Soon

Dabur CGU Life Insurance is planning to launch its products next month and would be capitalising the company in the next couple of weeks, Charles Anderson, CGU managing director (financial services - Asia), said here today.

The company's India chief Stuart Purdy said, with a launch in January, it would be able to catch the rush for policies in the last quarter of the year. Life insurance sales traditionally pick up in the last quarter of the fiscal as consumers buy policies to get the benefits of income tax rebate.

Purdy also said Dabur CGU would file the list of products it intends to launch with the Insurance Regulatory and Development Authority (Irda) at the same time as it capitalises the company.

 

The company has received in-principle clearance from the insurance regulator, but the registration certificate to carry on business in India would be awarded after the life insurance venture -- where CGU holds 26 per cent stake and the Burmans, the Dabur group promoters, hold the remaining 74 per cent -- is capitalised. Dabur CGU will have an initial equity of Rs 110 crore.

Anderson also said the life insurer would use a variety of distribution models to sell its products. "We will be a multi-distribution company. We don't expect to rely only on the old style agency workforce as it is not sustainable in the long term. It's a useful place to start but we don't want to change tact midway," he said.

Dabur CGU has tied up with Canara Bank, Laxmi Vilas Bank and ABN Amro and intends to use the bancassurance model effectively in India. Purdy said the life insurer is looking at more tie-ups.

"With the passage of time, Dabur CGU hopes to get about 50 per cent of its premium income from bancassurance, Anderson said.

He also said CGU is planning to increase its focus on the Asian markets and India was a key market in the company's plans. Anderson added that the insurer, which is into life as well as general insurance business globally, plans to enter the Chinese market and also has plans to sell insurance covers in Hong Kong and Malaysia. The company is already present in Singapore and Thailand, among the Asian countries.

He, however, ruled out an immediate entry into the general insurance business in the country. "We are not in talks with anyone at this point of time, but if there is a good opportunity, we will consider it," he said.