Bajaj Allianz expects general insurance business to increase 5 folds in next 5 years

Inspite on economic crisis, delay in increase of FDI to 49%, Bajaj Allianz, which is a joint venture between Bajaj Finserve Limited and Allianz SE, expects its company to grow at 20% in next five years. At present the company is growing at 6 - 7%. The company is planning its expansion in the rural areas of the country.
 
Justifying the expansion and increased growth, Mr. Tapan Singhel – Managing Director and Chief Executive Officer of the company said that business in rural area is vibrant with car sales and FMCG products are on a rise. Rural areas will be a key factor in attaining growth of a general insurance company. In addition to the above, he added that, insurance penetration being very low in rural areas, will also throw up a huge opportunity to expand the business.
 
Adding to the above, he revealed that the expansion in the rural area will be driven by low cost, high service model supported with latest technology.
 
With respect to premium amount, he said that due to inflationary pressure, economic slowdown etc the premium pricing will remain under stress. However the company will maintain status quo on premium amount.
 
Bajaj Finserve holds 74% shares in the company whereas Germany’s Allianz group holds remaining stake in the company. Statistics of IRDA shows that company collected gross premium amount of Rs. 1,506.36 crores during 1st four months of the current financial year.