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Flexibility and creativity will be critical for success, says Ajay Bimbhet

Ever since the market opened up, the insurance industry has exhibited impressive performance. Where do you see it a few years down the line? Increased consumer awareness of the benefits and the importance of insurance and re-insurance has generated many more buyers. The introduction of new standard market wordings and buoyancy in automobile and health insurance is currently driving growth in the general insurance industry.

De-tariffing has the potential to transform and liberalise the insurance market. Furthermore, it will lead to the Indian market achieving global standards in underwriting and risk management besides encouraging innovation.

How do you plan to further strengthen Royal Sundaram’s retail business?
A substantial share of the retail business can be captured by expanding geographical distribution and by using innovative channels. Flexibility and creativity will be critical for success in the move towards retail – for example, innovative new products in terms of cash-less hospitalisation products will be deployed quickly and efficiently. Easier payment options to suit individual requirements; customised policies tailor-made for the prospective clients and dedicated service points are already beginning to revolutionise the market.

Can you elaborate on your rural strategy?
Royal Sundaram’s rural business has grown, contributing 8% of the total premium. At Royal Sundaram, we have always realised and catered products to the specific needs of the rural markets. We have ambitious plans to expand in this segment and increase our customer base. Royal Sundaram has crossed 6%, which is above the obligatory levels of 5%.

Our rural business has grown considerably with wider distribution network and innovative range of products. We have tailor-made products to address the specific needs of the rural household. As an example, Royal Sundaram’s Gramin Arogya Raksha, a unique health insurance scheme for the benefit of the rural sector covers critical illness, hospital cash & personal accident.

A host of banks and others have evinced keen interest in setting up insurance ventures. Do you think this will lead to overcrowding?
We welcome competition as it is healthy for the sector.

What kind of precautions are you taking to ensure sound business practices?
We strive to understand the needs of our customers and fulfil those needs, besides insisting on strict adherence to the regulations of the country. Today, we have over 1.7 million satisfied customers who bear testimony to the success of our insurance solutions. Our excellence in customer service has fetched us a creditable score of 82% in the ACNielsen Customer Satisfaction Survey for the 3rd year.

Which innovative products do you plan to come out with, in the future?
We are constantly making innovations in our products to service the changing needs of our customers. Royal Sundaram has consistently made an effort towards innovation in personal insurance products in health, motor and accident. Our focus in the coming years will be on product innovation in the personal insurance sector and the continued support of our valued customer base.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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