“Our motto remains growth with profitability. And in this process, we have let go of a few loss-making businesses which were unwilling to renew at the right price or terms. Our market share is 12.78 per cent and we remain the market leader. The industry continues to be highly competitive,’’ Neerja Kapur, the outgoing CMD of NIA
Mumbai:
New India Assurance(NIA), the largest Indian general insurance multinational, has ended FY 23-24 with a global premium of Rs 41,860 crore, showing a year-on-year (y-o-y) growth of over 8 per cent during the period.
Having presence in 25 countries across the world, most of the NIA’s growth has come from the domestic market. NIA has recorded a premium of Rs 37,035 crore, with a y-o-y growth of 7.4 per cent in the Indian market, that has touched Rs 2,89,726 crore of premium in FY 24-25.
The company’s gross premium from overseas markets has risen by over 12 per cent to Rs 4,825 crore during FY 2023-24.
With an overall market share 12.78 per cent in the domestic general insurance market, the company has remained bullish on Health and Motor portfolios while slowing down in Fire and Crop during Fy 23-24.
“Our motto remains, growth with profitability. And in this process, we have let go of a few loss-making businesses which were unwilling to renew at the right price or terms. Our market share is 12.78 per cent, and we remain the market leader. The industry continues to be highly competitive,’’ Neerja Kapur, the outgoing CMD of NIA had said in an analysts meet recently.
The company has developed a well-diversified portfolio of products, including the recent launches of surety bonds. In fact, NIA is one of the few insurers issuing both bid bonds as well as performance bonds and these policies will go a long way in supporting the infrastructure growth in the country, said Kapur.
“We have also come out with modern treatment rider under the health insurance policies, the battery protect add-on for electric vehicles under our motor line of business, along with the pay-as-you-drive policies which we had launched earlier, MyCyber policy to address the cyber threat for our retail customers, CritiProtect policy to provide protection in the event of critical illnesses and earlier, of course, the drone insurance policy has been launched,’’ she mentioned.
“NIA is a leader in all segment wise performance in terms of gross direct premium in fire, marine, engineering, motor health as well as aviation. Our business mix, motor own damage(OD) and third party (TP) comprises of around 27 per cent, health and PA 45 per cent, fire 17 per cent, marine 2 per cent while others are at 10 per cent,’’ added Kapur..
There has been a lot of investment in the infrastructure in the country. So, the economy is seeing a lot of increase in the projects, policies coming which fall under NIA’s engineering policies, observed Kapur.
“So, we are seeing many large new projects for which we are issuing engineering policies. As regards fire, yes, we have been quite prudent in underwriting these — the policies. And, like, we are focusing on growing in the right segments. We have taken a conscious decision in some areas which have been continuously loss-making for many, many years. So, we have taken that conscious decision possibly not to renew or to renew at harder terms which the client may not have accepted,’’ explained Kapur.
Talking about the company’s efforts keep expenses under check, Kapur said the company’s commission ratios and expense ratios are at very reasonable figures and probably some of the best figures in the industry.
“Despite, giving added incentives to our sales force, under the EOM(expenses of management) guidelines issued by IRDA, our commission ratio for nine months was 8.74 per cent and expense ratio was 13.84 per cent,” Kapur noted.
“We are continuously endeavouring to provide the best of customer initiatives and service. Going forward, our focus remains on digital initiatives, streamlining processes for increased efficiency and increasing our sales force with a focus on our agency
channels,” she stated.
NIA is a domestic systemically important insurer and with a solvency ratio of 1.72 times and it is fundamentally robust and strategically well-poised to cater to the insurance needs of the country, offering the best insurance solutions to its customers while ensuring right pricing of its products, said Kapur, who will be calling it a day at the end of the month.
I am ex New Indian, and feel highly encouraged by my Company’s profitable performance/ continuous achievements, year after year.
One suggetion, increase personal touch with clients and intermediaries as a very caring Company To increase share above 15% in current FY.
Great and amazing achievement. So proud to be an advisor of New India Assurance Company. May we keep going higher in upcoming future! 💪👏❤
Sir
Many many thanks for your valuable suggestions 😊
Splendid achievement within a shortest tenure
New achievement
Great achievement. Very happy to hear we are no 1 in General Insurance in the country. We have to concentrate in Mediclaim as compared to private companies our premium rates are very high. We have to match the premium with private players.
Good to hear. Awsome PSU….
Congratulations for this splendid achievement. Great to be part of the team.
I served this great institution for 38+yrs and felt happy on this amazing achievement.
Pray God that the flag continues to fly high .
As a former New Indian, happy to know the prudent performance. Kudos to all New Indians n other stake holders on unrivalled achievements. Indeed, maintaining number ONE position from 1975 in the light of fierce market completion reflects robust and dedicated efforts. Claim settlement delays need to be curtailed with customer friendly processes, a concern area.
I am very much proud that I am also a part Of New India. Great Achievement. Many more florals yet to come. We will keep the tempo.
Since inception, New India remained trend setter. I am proud that I remained part of New India and whatever I am today is due to New India. Keep it up
There is too much expenditure on things like TA DA Various Vouchers.
Surveyors don’t seem to be honest. They also come under pressure. Underwriting has to be critically visionary and transparent. TPA Hospital nexus is criminal. Fake losses need to be curbed. Surveyors, Agents, Marketing people need to be respected.
NIA has to venture into new areas like covering job losses. NIA has to catch more customers for medical. Business abroad needs to be given fillip for generating foreign revenues.
There is need for 100 pc transparency in career prospects and promotion. NIA has to check why there are less investors for its shares.
NIA should have invested in infrastructure for office. Staff need to be trained in handling emerging trends in health, motors, household (this is a less covered area).
More awareness is required in reducing fire, especially in summer. More tie up is required with vehicle agencies. The aim should be to generate revenue, employee satisfaction, customer happiness and continuity, keeping a constant watch for venturing into new areas or bringing innovations which benefit insured.
AI has added another dimension. Staff need to be equipped. Everyone has to be serious like a NEET aspirant student and s/he has to believe in life long learning. Case studies are a must in accident related cases and consequent learning. Sea Piracies are a new challenging area.
I am an Agent of New India and I am extremely happy for this excellent achievement. Now the Company should focus on individual agents & enhance their Commission as the private sector insurers are giving much more commission in comparison to their PSU counterparts.
No one can beat New India I feel proud to part of this great Organisation and served for 35 years
I pray more success in coming years.
Proud to say that New India is the Company with right slogan “BORN TO LEAD”, I served 38 years in Company and now my preferred insurer since last 9 years is again New India as Broker.
No doubt the Company will remain leader in years to come.