National Insurance targets 15-16% growth

According to K Sanath Kumar, Chairman and Managing Director, NIC, plans are in action to increase the premium income by 15-16 % during the current fiscal primarily by scaling up its retail business and increasing its footprint in the corporate segment. Health and motor currently accounts for 78 % of NIC’s Rs. 14,000 crores premium income. “We need to increase the non-health and non-motor component of our business as these are basically more loss-making. We are looking at investment-driven growth rather than consumption-driven growth this fiscal,” said Sanath Kumar. It is aiming for a premium income collection of Rs. 16,000 crores compared with Rs. 14,000 crores last fiscal. While the non-life industry is growing at over 20 %, NIC is looking to grow by 15-16 % this fiscal. “We are looking at a carefully measured and calibrated growth so that we are not too much in the loss-making areas,” he said. The company reported a profit before tax of Rs. 100 crores in the first quarter of this fiscal. The company is looking to come out with a simple home cover for its retail customers. “Today people perceive home cover as a very complex sort of thing — we are working on simple schemes. These are meant for any calamities affecting home,” he said. “We had presented our strategy to the regulator (IRDAI) and the government, giving them a roadmap for shoring up our financials. We are glad we could adhere to those strategies,” he said. With an improved business, the company hopes to tap the capital market with an initial public offer by the end of FY18, he added.