Shriram to diversify product portfolio
By focusing more on the non-motor segments like marine, fire, during current FY
image for illustrative purpose
New Focus
•Will launch new insurance products under fire, marine, engineering segments
•To double non-motor biz to around 15% in 2-3 years from current 7-8%
•Will launch products in cyber insurance, pay as you drive, theft, pet insurance
Shriram General Insurance has planned to diversify its product portfolio by focusing more on the non-motor segments like marine, fire, during the current financial year, a top official said.
Motor insurance has been the core of the business for the Jaipur-based firm accounting to about 92 per cent, company Chief Underwriting Officer Shashi Kant Dahuja said. As part of the diversification plan, the company would launch new insurance products under the fire, marine, engineering segments, he said. “The idea is to double our non-motor business to around 15 per cent in two to three years from the current 7-8 per cent,” Dahuja told PTI in an interaction.
The non-motor business was growing at 70 per cent, he said. To strengthen its presence in the non-motor business, he said the company would launch products in cyber insurance, pay as you drive, theft and pet insurance, soon. “As a business strategy we don’t want to be excessively dependent on one vertical and we also want to diversify our products slowly and increase our non-motor portfolio to 15 per cent over the next 2-3 years,” he said responding to a query.
For the quarter ended June 30, 2023, Shriram General Insurance reported a profit of Rs 98 crore, up by 37 per cent over the corresponding quarter of last year. The Gross Written Premium during the quarter under review was at Rs 560 crore, up by 39 per cent from Rs 401 crore registered in the same period of last year. On the overall business growth targeted, he said the company has set a plan of growing 30 per cent during the current financial year.
“This year, we will grow the overall business by 30 per cent. The general insurance industry grew by 12 per cent between April and August this year, but our growth has been strong and we hope the momentum continues for the remaining months,” he said.
On the surge in electric vehicles in the domestic market, he said the sales of EV insurance policies were growing faster and the company issued policies worth Rs 82 crore during last financial year.
