Bharti AXA General Insurance like many other general insurance companies plans to bring down its losses by reducing their exposure to motor and health insurance. This has propelled the non-life insurer to work towards a three-pronged strategy.
Motor insurance at 65 per cent dominates the company’s product-revenue mix has caused heavy losses, followed by health and personal accident at 25 per cent.
Amarnath Ananthanarayanan, CEO and Managing Director of Bharti AXA General Insurance said that this strategy will include a change in the product-revenue mix, building data and adopting fraud detection measures to help assess the risk and price policies rightly. He also added that they plan bring down their exposure to motor insurance to around 60 per cent and the health and personal accident insurance to around 20 per cent. This company will shift its focus towards the small and medium enterprises (SME) sector to increase it to 20 per cent from the existing 5 per cent.
To prevent losses due to unforeseen events, the general insurance company plans to provide fire, electrical and general safety audits, post-loss survey and risk inspection, among others.
During the ongoing financial year, out of revenue of Rs. 600 crore through sale of 500,000 policies, the insurer has already settled 100,000 claims worth Rs. 285 crore.
Bharti AXA is also planning to infuse an additional Rs. 200 crore by the end of this calendar year adding to its current capital base of Rs 550 crore. So far the insurer has infused Rs. 90 crore.
