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Universal Sompo Eyeing 26% Growth in Bancassurance

universal Sompo General Insurance Company has added one more tie up, this time with Dena Bank, to offer a loan secure insurance policy to the bank’s retail and SME customers. The insurer already has tie ups with Indian Overseas Bank, Karnataka Bank and Allahabad Bank, its promoters, apart from Corporation Bank, to sell this product. Universal Sompo has turned profitable on completion of 5 years of operation. It incurred an underwriting loss of `65 crore in 2013-14, but its investment income of `74 crore generated a net profit of `11 crore. Ashwani Kumar, CMD, Dena Bank, said after signing the agreement: “All retail customers, who had taken education, auto, home and personal loans from the bank would be benefited by this insurance scheme. This product would safeguard financial assets of banks and prevent accounts from becoming non-performing assets (NPA).”

Mehul Dani: What is the total new business premium of the company in 2013-14? What are the growth figures?

august_img3 O.N. Singh: Universal Sompo General Insurance Co achieved new business premium of `284.73 crore, which is52.62% of the total business in FY 2013-14. We achieved a premium growth of 18%. Apart from motor insurance, which has negative premium growth due to strategic decision taken by the company not to renew our goods carrying and passenger carrying vehicle business at the market discount premium rates, all other segments achieved significant growth rate in FY 2013-14, especially in health (55.83%), marine (21.42%) and fire (18.74%).



How is your organizational set-up devised to cater to the needs of customers of different segments across the country?

We have 94 branches across India divided into 15 different zones. The main zones are Gurgaon, Tamil Nadu, Maharastra, West Bengal, Varanasi, etc. We have an Integrated Grievance Management System (IGMS) and Customer Interaction Management System (CIMS). Updating complaint status on CIMS with the remarks gets recorded on real time basis in IGMS. The insurer, customer and IRDA can view and get to know the status of the complaint being carried out by the Insurer as and when they login in IGMS. TAT for settling complaints have been defined by Policyholder’s Protection Committee as prescribed by IRDA. Our Protection Committee has been formed comprising heads of 3 departments – marketing, operations and claims.

In order to carry out successful client satisfaction activities, we follow certain steps, which include prompt and accurate issue of document, prompt and fair settlement of claim, good listening mechanism, better problem solving approach, reliable manner of service and meet customer’s requirement on time every time.

Which bank’s network has given you the highest penetration for your products in 2013-14?

Bancassurance is the major channel of business achievement. In FY 2013-14 also, the channel contributed 52% of total business achieved by the company. Although agency channel made a decline of 28.75%, bancassurance achieved growth of 14.45%. Our partner banks – Allahabad Bank, Indian Overseas Bank and Karnataka Bank – together have achieved 50% of the company’s overall premium. IOB has highest business contribution of 22.52%, Allahabad Bank 18.22% and KBL 9.39%. With the target of higher penetration, we have made new tie-ups with Corporation Bank, Dena Bank, Union Bank of India and Odisha Gramin Bank. We are present through 6652 bank branches as of end of 2013-14, out of which Allahabad Bank has the highest number (3088) of branches, followed by IOB (3044). The company has the highest number of bank branches in Zone V – (Varanasi, 976 branches) followed by Zone XII (West Bengal, 853 branches) and Zone X (Tamil Nadu, 813 branches).

Allahabad Bank has the largest network in Zone V (906) and XII (631), whereas Indian Overseas Bank has the largest network (752) in Zone X. USGIC has the least presence in Zone II (Rajasthan).

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