Shriram General Insurance unveils new vertical to focus on rural biz

Hyderabad: Shriram General Insurance, the non-life private insurance company part of the Shriram Group, on Thursday launched a separate vertical to focus on rural insurance. The company will recruit 1,500 employees and the insurance products will be available through 25,000 points-of-sale (PoS) as a part of the three-year plan for rural expansion till FY25.

Over the next year, the company plans to focus on 600 talukas where insurance penetration is low. Areas with population ranging between 20,000 to one lakh people will be targeted. The sum assured will be comparatively small in many cases, as the average income of people in such areas usually ranges between Rs 20,000-25,000.

The insurer will offer simple products which can create value for the rural population. As per the customer base and targeted demographics, it has developed homecare and personal accident insurance covers. In addition, it will offer long-term two-wheeler insurance, goods-carrying commercial vehicle insurance, and policies for small businesses, properties and shops, among others, the company said in a press release.

Anil Kumar Agarwal, MD and CEO, Shriram General Insurance said: "India's farmers and their agriculture business play an integral part in the country's growth. Rural insurance will ensure that families living in rural areas have a safe and secure future, and are protected against uncertainty. The Shriram Group has always kept the Aam Aadmi at the centre of all our business endeavours. We have ensured that our rural insurance plans are easy to understand, affordable, compensate for monetary losses and help people in rural areas become independent. We expect rural insurance to contribute a quarter of the company's sales income, or 16 per cent of the total premium income, by FY25."