Zero Depreciation or ‘Zero Dep’ car insurance policies seem to ...
SS Gopalarathnam, Managing Director of Cholamandalam MS General Insurance, in a press conference shared the growth and future plans of the company. Chola MS, which is a joint venture between Chennai’s Murugappa group and Japan’s Mitsui Sumitomo Insurance (MSIG), aims a gross written premium (GWP) of Rs. 2,000 Crores by the end of 2013-14 along with a profit of Rs.100 Crores. He said that the company expects to achieve Rs.950 Crores during the current financial year (2010-11) with a profit of Rs.20 Crores. In 2009-10, the company achieved Rs.785 Crores with a profit of Rs.2 Crores.
The company plans to use the growth opportunities in the vehicle insurance segment, mostly in the western industrial sector spanning across Maharashtra and Gujarat.
MSIGs India country head, Tsyoshi Yamane is driving the action plan to increase the company’s share in the automobile sector. The company is deciding on details such as whether they should focus more on GWP from 4-wheeler segment and less from 2-wheeler business or should thrust towards the commercial vehicle insurance over the passenger segment.
Motor insurance contributes 60% of the company’s topline, 20% from health insurance. Hence, the company also plans to focus on the health insurance sector to increase its contribution to 30%. Chola MS will launch 7 new products in the next six months and the new health products will be costlier
The company’s current capital base is Rs.269 Crores and to realize its growth plans, it will pump in another Rs.200 Crores over the next 3 years.