Gireesh Babu | Chennai February 19, 2015
The company enters into tie up with Indian Overseas Bank for bancassurance
Apollo Munich Health Insurance Company, a joint venture between Apollo Hospitals Group and Germany-based Munich Re's healthcare business Munich Health, is expecting its Gross Written Premium to cross Rs 1,000 crore next fiscal year. The company is entering into a bancassurance tie up with Indian Overseas Bank (IOB), anticipating access to the latter's customers.
Antony Jacob, chief executive officer of Apollo Munich said that the company, which posted a GWP of Rs 690 crore during the year ended March 31, 2014, is expecting the premium to grow to Rs 850 crore by the end of current fiscal year.
"We have not finalised the plans for the next fiscal year, and we are in the process of finalising it. However, we expect to reach around Rs 1,000 crore turnover by the end of next fiscal year," he said. He added that the company, which has entered into tie up with Canara Bank, City Bank and now IOB, in the last 18 months, would also sign a few more bancassurance pacts.
It would be looking at consolidating its products next year and would look at growing its market share in the health insurance sector. The company has almost 10 per cent of the retail health insurance market, which has a total size of around Rs 7,000 crore market, he said.
Almost 75 per cent of the company's business comes from retail health insurance, while the rest is from groups. The company currently covers around 3.5 million people with its policies. The focus would be on retail sector, he added.
The company, which offers its services including purchase and renewal facilities for the customers through web portal, is planning to launch a mobile app shortly. It currently has tie up with around 4,000 hospitals across 550 cities for its health insurance services.
Jacob said that the company is expecting a growth rate higher than market rate, as it has done in the recent past. The market is growing at 15-20 per cent per annum while the company has posted around 28 per cent growth last year. The company has been posting an annual growth rate of 25 per cent and would like to continue the same in the future, he added.
The company, which has a portfolio of around 14 first generation products, currently has distribution through agents, bancassurance, corporate agents, strategic partners, travel agents, sales associates and direct sales force. It currently has around 80 offices across the country.