CHENNAI : Chennai-based Chola MS General Insurance Co aims to reduce the motor insurance business in its portfolio mix and sustain higher-than industry growth to increase market share, according to a senior official of the company.
V Suryanarayanan, managing director of the company, said their growth of the premiums written in the December quarter stands at 14.2% on a yearly basis (YoY), adding that it is higher than the industry average of around 11% YoY on a line of business (LOB) basis. He further said that the company has been maintaining the higher than average growth rate for 11 months and aims to sustain the growth momentum going forward.
The company registered a 26% growth in gross written premium in the December quarter on a year-to-date (YTD) basis, pertaining to April to December 2023 period, against the industry average of 15.4% (YTD). Chola MS General insurance’s gross written premium grew 14.2% in the December quarter at Rs 1,855 crores and more than 26% at Rs 5,578 crores on a YTD basis.
The insurer plans to diversify its motor business to 63.8% in December FY24 from 71.2% in FY21. It plans to bring it down to 60% in the near-term and further down to 55% in the long-term. Within the segment, the insurer’s share of commercial vehicles in its portfolio reduced 58.2% in FY21 to 42.3% in the December quarter of FY24. Recently re-entered crop insurance business consists of 7.3% of its loan book. Health business also witnessed an uptick to 10.2% in December FY24.
Chola MS, a joint venture between Murugappa Group and Japan-based Mitsui Sumitomo Insurance has plans to grow its GWP to and its total market share among multi-vertical players to 5% in the next three years. It has a fairly even geographic spread across the country and hopes to further expand business in the North East market, driven by the government’s infrastructure push in the region.
V Suryanarayanan said the policy mandated by the General Insurance council to provide cashless treatment to non-network hospitals won’t affect the company’s business.