The Insurance Regulatory and Development Authority has issued a three-year license in the “ Direct – Life & General” category to Hero Insurance Broking India Private Limited to conduct all types of General Insurance business, including health and life onsurance.
The robust insurance business of Sunil Kant Munjal-promoted Hero Enterprise, which is currently carried out by Hero Corporate Service Pvt Ltd, will migrate to Hero Broking.
“Our insurance vertical has grown new wings. This license gives us the capability to expand our physical footprint and grow our branch network on a sustainable basis. We will also be able to expand beyond automobile insurance and create fresh momentum in the new decade,’’ Shefali Munjal, executive director, Hero Corporate Service said.
“Our distribution strengths lie across Tier 2, 3 and 4 cities and the trust that customers already have for the Hero brand, place us at the frontline in the battle to increase health penetration in India,’’ Ms Munjal added.
To grow the broking platform, Hero is strengthening its client servicing teams across India. The company’s IT backbone is also being strengthened to meet the customised needs of large corporates, SMEs, MME’s & other niche customer segments.
She said the broking license would also help Hero offer certain super-specialised insurance products that are making their way into India.
Hero currently offers its general insurance services to the manufacturing, hospitality, education, health, travel and aviation sectors, in addition to the entire automobile segment. It recently entered the life insurance segment, and is now aggressively looking at expanding its footprint in the health insurance space.
The company (under the erstwhile Corporate Agency Platform) has clocked a CAGR of 26.4 per cent in the 2004-2017 period, with policies issued jumping from 6 lakh to 10 million policies annually, and the number of renewals has gone up from 20,000 a year to 4 million a year.
The premium handling capacity has increased from Rs 4.5 crore to Rs 2000 crores, while average monthly policy issuance has gone up from 5000 to 8 lakh.