Kolkata: Having suffered a severe downslide in growth in premium during the first quarter of the current fiscal, Bajaj Allianz Life Insurance is going in for a rejig of its operations.
It is devising a new range of unit-linked policies to compensate for the chunk of premium that came from a category of products that were discontinued since last year. It is also looking at controlling expenses.
Bajaj Allianz grew 13% in the first quarter of the current year, one of the lowest in the industry. Although the company has the second highest market share of 12.20% in the private life space, the growth has been low compared to most of the other players in the industry.
Kamesh Goyal, CEO, Bajaj Allianz told DNA Money, “Yes, there has been a low growth, mainly on account of some categories of businesses that we have almost stopped. We are not doing single premium and hardly doing group business plans. Moreover, we have discontinued the clutch of actuarially funded products. All this contributed 40-50% of the portfolio.”
Bajaj Allianz, which has one of the largest geographical spread in the industry, may not go in for much expansion in the current year. “The greatest challenge will be to manage costs while building a market share. Currently, we are well positioned, with costs comprising 14-15% of the gross written premium. But this has to be lower in a few years. This will be done by increasing market share and increasing productivity per employee,” Goyal said.
As part of its thrust on new policies, the insurer just introduced a new unit linked plan - Fortune Plus. The company also recently launched a family floater as part of its health insurance initiatives.
Commenting on the company’s growth, Rajeev Varma, analyst with Merrill Lynch said in a recent report, “Bajaj Life’s slowdown a worry. While a concern, it is too early to take a call. We expect the growth to bounce back as it scales up distribution in the coming months.”
Enam India Research analysts Punit Srivastava and Sumit Agarwal, point out, “The company has seen a moderating growth after a high growth phase. Market share of the company has seen substantial improvement.”
It is devising a new range of unit-linked policies to compensate for the chunk of premium that came from a category of products that were discontinued since last year. It is also looking at controlling expenses.
Bajaj Allianz grew 13% in the first quarter of the current year, one of the lowest in the industry. Although the company has the second highest market share of 12.20% in the private life space, the growth has been low compared to most of the other players in the industry.
Kamesh Goyal, CEO, Bajaj Allianz told DNA Money, “Yes, there has been a low growth, mainly on account of some categories of businesses that we have almost stopped. We are not doing single premium and hardly doing group business plans. Moreover, we have discontinued the clutch of actuarially funded products. All this contributed 40-50% of the portfolio.”
Bajaj Allianz, which has one of the largest geographical spread in the industry, may not go in for much expansion in the current year. “The greatest challenge will be to manage costs while building a market share. Currently, we are well positioned, with costs comprising 14-15% of the gross written premium. But this has to be lower in a few years. This will be done by increasing market share and increasing productivity per employee,” Goyal said.
As part of its thrust on new policies, the insurer just introduced a new unit linked plan - Fortune Plus. The company also recently launched a family floater as part of its health insurance initiatives.
Commenting on the company’s growth, Rajeev Varma, analyst with Merrill Lynch said in a recent report, “Bajaj Life’s slowdown a worry. While a concern, it is too early to take a call. We expect the growth to bounce back as it scales up distribution in the coming months.”
Enam India Research analysts Punit Srivastava and Sumit Agarwal, point out, “The company has seen a moderating growth after a high growth phase. Market share of the company has seen substantial improvement.”
Source: DNA
1 comment:
Wo kaun log hai jo aapke mehnat se kamae hue rupai ko bahut aasani se apni pocket me le ke ja rahe hai?
Agar aapne apne Child ke education, Marriage/ khud ka retirement, ek bada Banglow, badi gadi, ka Sapna dekha hai to kya wo pura ho payga?
Apko bahut saare bima agent mile honge jo sirf ye kahte hai, 1saal, 2 saal, 3 saal paise digiye aapka paisa 4 ya 5 saalo me double ho jayaga? kahan se hoga !
Kya Itne kam samey me double kara ke aapka koi sapna pura ho payga? Paisa kharch ho jayaga ya phir bima agent ke duara aapko ek aur policy de di jayegi jo aapke koi kaam ki nahi hoga aur saath me kaafi samay bhi nikal jayaga.
Aise me aapke sapne pura ho ya na ho bima agent ka bache ka saadi jarur ho jayega.
Aaj market me aisei bhi log hai jo 3 saal premium dene wale policy ko ye kehkar de rahe hai sirf ek saal hi premium digiye aapka paisa badhta rahega.
Is tarah ki galat convince wali policy apne aap 4Th ya 5Th year me terminate ho jayegi aur isme jo apka paisa laga hai sayed hi wo puri mil paye. Aur aise policy ka insurance bhi sirf 1 saal tak rahta hai.
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