Kotak Mahindra General Insurance is set to commence business with an initial capital of Rs 135 crore, after obtaining its licence of registration from the insurance regulator.
The industry’s newest entrant will operate in all general insurance segments, with a focus on retail business – motor, health, home and travel insurance – to start with. Subsequently, the company plans to foray into commercial lines comprising fire, burglary, marine and so on.
The insurer has already filed a set of products with the regulator. “We will start full-fledged operations by December-end, subject to receiving product approvals from the regulator,” said Gaurang Shah, president, asset management, insurance and international business, Kotak Mahindra Bank. Its motor insurance product will be rolled out first, followed by retail health plan.
“We want to grow steadily by underwriting quality risks, maximising volumes and keeping costs in check rather than chasing premium growth or industry rank in next few months,” he added.
For distribution, it will initially rely primarily on Kotak Mahindra Bank BSE 0.51 % branches (including the merged ING Vysya’s branches) across the country. “Eventually, we will look at other channels, including agency and online,” said Shah.
Currently, the company does not have a tie up with any a foreign joint venture partner unlike most other insurers. “Option to bring in other shareholders depending on our strategic requirements will always remain open, but we are not actively scouting foreign partners at the moment,” said Shah.
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