New India Aims for 50:50 Corporate-Retail Portfolio as Insurance Sector Enters New Era
Mumbai: New India Assurance (NIA) plans to gradually rebalance its business portfolio by increasing its retail and MSME presence while retaining its leadership in the corporate segment, Chairperson and Managing Director Girija Subramanian said on Wednesday.
Addressing the insurer’s 108th Foundation Day celebrations, Subramanian said creating a more balanced business mix is one of the company’s most important long-term strategic priorities.
“Historically, around 70% of our business has come from corporate segments, while retail and granular business accounts for approximately 20%. Our long-term direction is to progressively move towards a more balanced mix of around 50:50,” she said.
She clarified that the shift does not imply reducing the company’s focus on corporate business.
“New India will continue to lead and grow in large, technically complex and nationally significant risks. At the same time, a stronger retail and MSME portfolio will give us wider customer reach, better geographical diversification and more sustainable business growth, while staying aligned to the national imperative of ‘Insurance for All’,” she said.
Subramanian said the transition began in 2024 and would require sustained efforts across the organisation.
“Since 2024, we have been consciously working towards this new balancing. It will take time, consistent efforts and a change in the way every office approaches business development. But the direction is clear for us,” she added.
Highlighting the company’s performance, she said New India’s global gross written premium reached an all-time high of Rs 47,174 crore, while its market share increased from 12.56% to 12.74%.
Preparing for 100% FDI Era
Subramanian said the Indian insurance industry is entering a phase of significant transformation following the government’s decision to allow 100% foreign direct investment (FDI) in the insurance sector.
“The policy move to permit up to 100% FDI in insurance will attract greater capital, new technologies, global capabilities and additional players. Competition will intensify, and customers will compare not only products and prices, but also convenience, speed, transparency and quality of service,” she said.
“For New India, this change should not be viewed with apprehension. It must be seen as a clear signal to become more agile, more innovative and more responsive.”
She said the next phase of the company’s transformation would focus on modernising core systems and completely redesigning the customer journey—from onboarding and policy issuance to servicing, renewals and claims settlement.
“Our objective is not merely to digitise an old process. It is to question whether that process is still necessary and redesign it around customer convenience. The plans are in place. What is now required is discipline and timely execution.”
Artificial intelligence, she said, will play an important role in New India’s future, but technology alone will not drive transformation.
“While we invest in systems and technology, we must also invest in the attitudinal and behavioural aspects of service. A modern system cannot compensate for an indifferent response. A digital portal cannot replace ownership of a customer problem. A quick policy issuance process loses its meaning if the customer struggles when a claim occurs.”
She stressed that customer-centricity must be reflected in every interaction and called for continuous learning to keep pace with evolving risks, products, regulations, distribution channels and technologies.
‘Built on the Spirit of Swadeshi’
Speaking on the occasion, G. Srinivasan, Managing Director and CEO of Galaxy Health Insurance and former CMD of New India Assurance, said the insurer was founded in 1919 with the vision of creating a globally respected Indian insurance company.
“The company was started with the spirit of Mahatma Gandhi’s Swadeshi movement, at a time when the Indian market was flooded with foreign insurers. A group of Indian businessmen led by the House of Tata established New India—not merely to create an Indian insurance company, but with the mission of building a global insurance company,” he said.
Srinivasan said the insurer’s longevity itself reflected its enduring strength.
“I don’t know how many companies have survived 50 years or 70 years, but here is a company that has completed over a century, is still trusted by the market, and continues to march ahead of its competitors.”
According to him, New India has consistently differentiated itself through three core strengths.
“The first is its financial strength. The second is its ability to serve customers well. The third is its technical expertise.”
He said the company has, over the decades, built unmatched capabilities in underwriting complex risks, including fire, engineering, aviation and liability insurance, making it the market’s preferred insurer for technically challenging risks.