Calcutta, Feb. 11: General insurer Bajaj Allianz will focus on the health segment to beat the slowdown in the automobile sector, which makes up bulk of its business.
The company expects the Rs 52,875-crore general insurance industry to grow 18 per cent by the end of 2012-13, Tapan Singhel, managing director and CEO of Bajaj Allianz General Insurance, today said. However, in 2013-14, the rate of growth is estimated to go down to 14-15 per cent on account of a slowdown in the automobile sector, which constitutes over 40 per cent of the industry.
Auto industry representative body Siam lowered its forecast of passenger car sales for this fiscal year in January to 0-1 per cent. It had predicted a growth of 10-12 per cent at the beginning of this fiscal.
"In 2012-13, we expect the premium collection to reach Rs 4,000 crore, registering a growth more than the industry. But in 2013-14, we expect the growth in premium collection to be in line with that of the industry because of a slowdown in the automobile sector, which constitutes 55-56 per cent of the total business," said Singhel.
"So, the focus is to grow in the retail health segment. It is expected to grow 30-35 per cent. We have four products awaiting approval of the regulator (the Insurance Regulatory and Development Authority). We expect at least 50 per cent growth in the segment," he added.