Magma HDI to launch new products to boost retail insurance portfolio
Magma HDI General Insurance Company is looking to launch group health and overseas travel insurance this fiscal to boost its retail portfolio. Currently, retail accounts for around 5 per cent of its total business.
According to Rajive Kumaraswami, MD and CEO, Magma HDI, the aim is to increase the share of retail to close to 20-25 per cent in the next two to three years.
The company launched OneHealth, a health insurance plan, to cover significant medical conditions as well as lifestyle diseases eight months back.
“We will file for a group health insurance product in the third quarter and an overseas travel insurance cover in the fourth quarter of this fiscal,” Kumaraswami told BusinessLine.
Under the group health cover, the focus would be primarily on small and medium enterprises (SME) rather than large corporates. The company would ‘ride’ on the strength of Magma’s SME base.
“We will enter the group health business in a cautious way as it tends to be a loss leader, particularly in the case of big corporate. Magma adds over 500 SMEs every month and we will tap that business,” he said.
In 2017-18, Magma HDI had a total business premium of ₹560 crore, a growth of around 32 per cent, compared to ₹423 crore in FY17. Currently, motor accounts for close to 74 per cent of the total premium, while commercial insurance accounts for around 21 per cent.
The company plans to bring down the share of motor insurance to close to 60 per cent over the next two to three years.
Magma HDI, which grew by nearly 60 per cent in the first quarter of FY19, expects to maintain the growth momentum, going forward. While Q1 and Q2 account for nearly 45 per cent of its annual business premium, the remaining (55 per cent) comes during Q3 and Q4, he said.
It also plans to tap the bancassurance channel by entering into tie-ups with banks for distribution of its products.