Liberty Videocon General Insurance, which launched its operations early this year, has set a premium target of Rs. 100 crore by the end of this year. This will be achieved through a balanced mix of retail and commercial products, according to Roopam Asthana, CEO and Whole-time Director of the company.
Addressing presspersons here on Friday, Mr. Asthana said in India, the underwriting business continued to make losses and the industry was mainly making profits through income from investments. However, the situation had changed at present, with some companies reporting profits from underwriting, he said.
“Given the low penetration levels and a huge potential for this sector, there is definitely scope for more players to come in,” he said.
Asked about possible consolidation in the industry, he said the possibilities were few as there were no foreign promoters looking to exit India.
About the future plans of Liberty Videocon, he said the company would create a wide network of corporate agents and also leverage bancassurance opportunities to ensure efficient distribution of products.
The company would not go after aggressive growth immediately and would concentrate instead on building infrastructure in the first couple of years and making investments in people, he said.
The company has so far opened offices in 8 states, which command 75 per cent of the total premium collection in India.
Mr. Asthana said the company would establish its ninth office in Jalandhar (Punjab) soon. Liberty Videocon commenced business with an initial capital of Rs. 350 crore, one of the highest for a start-up company in the general insurance industry, he said.
