Shriram General Insurance, based in Jaipur, plans to expand its non-motor insurance business during the current fiscal year.
Motor insurance has traditionally been the mainstay of the company, constituting approximately 92% of its business.
However, the company intends to diversify its product offerings by focusing more on non-motor segments such as marine and fire insurance.
As part of this diversification strategy, the company will introduce new insurance products in segments like fire, marine, engineering, and more.
The goal is to double the non-motor business's contribution to around 15% of the total portfolio within the next two to three years, up from the current 7-8%.
The non-motor insurance business has shown strong growth, with a growth rate of 70%. To further strengthen its presence in this segment, Shriram General Insurance plans to launch products in cyber insurance, pay-as-you-drive insurance, theft insurance, and pet insurance.
The company's strategy is to reduce its dependence on a single vertical (motor insurance) and gradually expand its product offerings.
For the quarter ending June 30, 2023, the company reported a profit of Rs 98 crore, marking a 37% increase compared to the same period in the previous year.
The Gross Written Premium for the quarter also saw significant growth, reaching Rs 560 crore, a 39% increase from the previous year.
Shriram General Insurance aims to achieve an overall business growth rate of 30% for the current financial year, outpacing the general insurance industry's growth rate of 12% between April and August.
The company also sees significant potential in the electric vehicle (EV) insurance segment, with policies worth Rs 82 crore issued in the first six months of the current financial year.
To support its business expansion, the company plans to hire an additional 700 employees during the current financial year and increase its agent base from 63,000 to 1.50 lakh over the next couple of years.
Additionally, Shriram General Insurance intends to grow its medical policy segment, especially in the "Benefit-based health insurance" category, which offers unique features and has gained popularity, particularly post-Covid-19.