Q. The financial global turmoil had some impact on most sectors in India. According to you, how badly was the Indian Insurance industry impacted and which are your key business areas that have witnessed a slowdown?

A. I would say that the financial global turmoil had minimal impact on Indian insurance industry. If you see fall in premium in other than motor and health segment, it is due to de-tariffing factor mainly.

Q. Insurance in India is a big opportunity especially with the large population and untapped potential. What according to you are going to be the key growth areas in the near future? Any measures taken by you to ensure vast growth in these segments? Also, what about your efforts in rural India?

A. The large population of India, especially the middle income group is giving us a good opportunity to tap health insurance premium on the one side and also to serve this section of the society with dedication.

As regards the people under Below Poverty Line, the Government is taking various steps to insure them and insurance companies are being involved in it. We are involved in implementing Rajiv Aaarogyasri Community Health Insurance Scheme in Andhra Pradesh and also 5 Districts in Haryana under RSBY scheme.

Q. In the early years insurance companies face huge cost over runs. How is your company placed with regards to this aspect? What are the other challenges faced by the insurance industry?

A. When you want to spread the wings, when you want to have more number of branches, naturally, substantial amount will have to be spent. This is something which cannot be avoided whether it is STAR or any other Company.

Q. Higher business growth requires high level of solvency margin and capital infusion on a regular basis is necessary. What are the ways considered by you to inject additional capital? Are there alternatives that you suggest the industry should move towards?

A. Yes. It is true that when the premium grows, you have to bring in more capital and we are no exception. This year we have injected additional capital and ensure adequacy of solvency margin. Besides, it increased our capacity to do more underwriting in the future.

Q. In recent times, the private sector has proved vital in facilitating the sectors growth. What are the measures taken by you to exhibit strong growth amidst the fierce competition?

A. I would not agree that private sector alone provide in facilitating the sectors growth. Even today, it is to be understood that Life Insurance Corporation of India in Life, 4 Public Sector Insurance Companies in general insurance are playing a very major role. As regards health is concerned, a consensus is emerging amongst the general insurers to look into the burning cost and quote accordingly.

Q. What is your product USP/ strategy that sets apart your company from the rest?

A. Our company has got 24 x 7 Toll Free help line to give medical advise and also we are in constant communication with our policy holders through our health magazine which are unique to our company. I don’t think any other insurance company in India is having such value addition.

Q. Growth in the Insurance Industry is largely dependant on product innovation backed by a strong distribution network. How well is your company equipped with this kind of work force/ infrastructure? Do you see some major hiring in the near future (6 months)? What are your expansion plans in terms of number of branches?

A. We have on date about 144 branches and we may consolidate our business with the existing set up and therefore no need for new Branches to be opened.

Q. How well has your company tapped the bancassurance channel of distribution? Are there are other new avenues (like online retail of insurance) that you would like to tap in order to enhance your marketing and distribution network?

A. As regards the bancassurance, as you are aware, since ours is a mono-line company, we are in a dis-advantageous position. We are looking forward to the Regulator to open up this channel for more than one company which will be useful for us.

Q. The government under the IRDA has played a crucial role in the development of the insurance sector over the past decade. However, what according to you should be the predominant change made by the government with respect to its laws in order to provide further impetus to the growth of the insurance industry in India? What medium or long-term issues in the sector do you want that the regulator to address?
A. Capital is a problem. I am of the view that if 49% FDI is allowed, this problem may be tackled. We should complement, at this juncture, the IRDA which has really done an excellent work and ensuring that this industry is functioning in an orderly manner.