Kotak Life eyes Rs 1,000cr premium in FY07

Kotak Life Insurance anticipates Rs 1,000 crore premium collection during the financial year 2007.

Gaurang Shah, managing director, Kotak Life Insurance, said that company was planning to increase its branch network to 82 from the present 67 by the end of the current fiscal and double its agency force by next year.

Shah who was here to inaugurate Kotak Life's 18th branch office and third full-fledged branch office in Ahmedabad, said that the insurance industry was experiencing boom for the last two to three years and would see almost 100 percent jump in terms of volume growth during 2006-07.

The total industry volume is expected to jump from around Rs 35,000 crore in 2005-06 to Rs 65,000 crore-Rs 70,000 crore during 2006-07.

In 2005-06 the private sector players in life insurance industry had a share of around 35 per cent whereas the government-owned Life Insurance Corporation controlled lion's share of 65 percent of the total market.

Kotak Life enjoyed around 2 per cent of the total market share or 5 per cent of pie controled by the private sector players in life insurance business during the last financial year.

Kotak is confident of improving its market share further during the current financial year, said Shah. By the end of current financial year, the private sector players are expected to achieve Rs 18000 to 20,000 crore of market share compared to approximately Rs 10200 crore share it enjoyed during the last financial year.

Kotak Life Insurance is also considering opportunities to tap overseas market of non resident Indians.

Recent announcement of IRDA allowing private sector insurance companies to open overseas representative offices will facilitate Kotak Life's plans to go overseas. Shah said Kotak Life will tap this market next year.