General insurance company, Royal Sundaram Alliance (RSA), has developed a product exclusively for one of its distributors American Express Bank.
The product will be sold to Amex cardholders.
The launch of the Accident Security Plan, a personal accident death and disablement insurance plan, here today, marks the first instance of an insurance firm designing a product exclusively for its distributor.
RSA deputy managing director Antony Jacob said the company would be launching more products targetting its distributors.
The risk firm which has already received permission from the Insurance Regulatory and Development Authority to launch about 40 products in the domestic market is approaching the insurance regulator with 20 more products, Jacob said.
RSA has launched motor vehicles insurance, personal accident and householder policies in the country.
From the trends available in the first seven weeks of the current financial year, RSA is well on its way to achieve its target of a premium income of Rs 120 crore during the fiscal, Jacob said.
According to the plan for the year, the company is targetting 50 per cent of the premium income to come from personal lines of businesses and an equal proportion from commercial lines.
Jacob said the company is likely to break even in 4-5 years, if the targeted growth were achieved.
The general insurance company, where Sundaram Finance and other group companies holds majority 74 per cent and the UK-based Royal Sun Alliance has the remaining 26 per cent, started business last fiscal-end with an initial capital of Rs 101 crore.
As part of its marketing strategy, Jacob said the company would go for 'bancassurance' and has tied up with four banks including Citibank, ABN Amro, Standard Chartered Grindlays and American Express Bank. "Bancassurance is a model in Asia which could be introduced in India as well," he said.