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Interview of Sam Ghosh, CEO of Bajaj Allianz
Life Insurance and Country Manager, Allianz
(Date: 25th May 2006)
Bajaj Allianz has moved from second to first
position among private insurers? What reasons would you
attribute for this success?
It’s a great feeling for the team to have achieved the
number 1 position amongst private sector companies. We have
a long way to go and this is just the beginning of our long
road to success where we want to satisfy every customer’s
need and eventually become the leader of the industry. Earning
'trust and faith' from the customers has been the key objective
of our sales teams and servicing.
Customer focus is what drives us to excel and perform aggressively.
Two years back when we started to reorient the company,
we started from the basics, analysing the customers and
their needs and we rebuilt the product portfolio and the
company structure around those needs. Our basic promise
is ‘Jaise Zaroorat Viasa Insurance' Insurance as per the
customers need - no fancy commitments but a honest promise
that we can deliver and customer believes value based economical
products with good appreciation and security.
We have made an ongoing effort to reach out to customers.
We have our offices in 560 towns and plan to add more offices
in the existing towns and add offices in more towns as well
so as to reach more customers across the country in this
financial year. To reach out to the customers and provide
efficient service we are not only opening our own offices
but also have tied up aggressively with numerous banks and
corporate agents so that the customers can buy our products
and get service as per their convenience and comfort level.
We have tied up with MNC banks, Private sector banks, nationalised
banks, co-operative banks, sate and district co-operative
banks and regional rural banks covering entire gamut of
banking distribution so as to reach customers across country.
Total credit for achieving the numero uno position goes
to the dedication and commitment of our employees, insurance
consultants, other associate partners teams combined with
products and servicing that has helped us win the customers’
confidence. We will keep working hard to maintain the satisfaction
level of the customers.
The company kick started the year with four new
policies? How many products are there in the pipeline?
Product innovation is important to reach out to
changing needs and desires of customers. Like last year
we plan to come out with 4-5 new innovative products this
year as well.
The new ULIP norms will come into effect from June
2006, what effects do you see on your ULIPs products?
We do not see much issue in that. As we have a complete
suite of products on both Unit linked as well as traditional
products. Customer can chose form any product from both
the ranges.
What is your present market share? What is your
New Business Premium for the FY (Apr05 - Mar 06)?
Our market share as per IRDA figures for New Business premium
for 2005-06 is 7.56% in Life Insurance Industry and amongst
private sector players we are the ranked No1.
with 26.5% market share.
How much does bancassurance contribute to your
business? Recently, Centurion Bank of Punjab has tied up
with Aviva Life Insurance, replacing Bajaj Allianz? How
far will your clients get affected with this?
Bancassurance contributes 20-25% of our business. For all
the existing Centurion bank clients we have a team, which
calls them and provides service to them directly.
The Company plans to venture into health segment,
what strategies are being looked into?
It's a big opportunity and we are looking at various models
that will help us grow rapidly in this sector as well.
Rural sector holds a good potential for insurance,
how do you plan to tap this segment?
We have tied up with 7 leading Regional rural banks already.
Also we are tying up with NGOs and other organizations,
which have strong presence in rural and semi urban areas.
Besides, we are also going to open our own offices in these
areas as well.
Do you plan to infuse additional capital in the
company this year? If yes, how much?
Currently, we have sufficient capital as per IRDA
norms. Both shareholders are very pleased with the company’s
performance and as and when the capital is required the
shareholders will provide for the same.
Could you elaborate on your distribution network?
We have a vast distribution network in all the three channels:
Agency has more than 600 offices in 560 towns, as mentioned
earlier bancassurance has tied with a complete spectrum
of banking sector and alternate channel has more then 100
corporate agents and district co-op banks.
What are some of the changes you would want to
see in the insurance sector in the coming five years?
Currently, tax is one of the major reasons for Life Insurance
sales. Ideally people should look at getting adequate insurance
cover for securing family dreams in case of eventualities.
Also pension and health are the 2 big areas globally which
have yet to pick up in India.
What are your future plans?
Grow aggressively and maintain quality of service. We are
planning to expand to 750 towns in this financial year and
explore various ways in which we can capitalise on
health and await the opening up of the pension sector.
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