Max New York plans foray into micro insurance

In a bid to broad base its insurance business, Max New York Life Insurance is planning to foray into the micro insurance sector.

"We are in the early stages of talks with a general insurance company for a tie up for the micro insurance foray," Gary R Bennett, CEO and MD of Max New York Life Insurance, said here.

The company is right now looking at the various aspects of micro insurance in terms of product packaging, pricing and chalking out distribution models with the general insurance partner, he said.

He, however, did not mention when the insurer intends to start the venture.

It is going to be a great opportunity for the insurance company, he said adding, the next phase of development of the life insurance industry will be in rural areas.

Presently, IRDA regulations permit a life insurance company to tie up with one general insurance company for offering a composite product, a combination of life cover along with health cover, and crop and livestock insurance.

Talking about fresh capital infusion Bennett said, the company plans to raise its paid-up capital to Rs 1,000 crore in next two years and eventually to Rs 1500 crore.

Currently, the paid up capital of the company stands at Rs 617 crore with Max India Ltd holding 74 per cent stake and rest 26 per cent with the US-based New York Life.

Riding on the triple digit growth the company expects to achieve break even by the fiscal year 2008-09.