Canara HSBC OBC Life eyes expanding insurance services to small cities, towns
Private sector life insurer Canara HSBC Oriental Bank of Commerce Life Insurance is focusing on increasing insurance penetration in small cities, towns and rural areas.
"Insurance awareness is increasing. The penetration is more required in semi-urban, rural, tier-II and tier-III cities and that has been our new focus for us now," Canara HSBC OBC Life Insurance Chief Executive Officer Anuj Mathur told PTI.
"If I look back on how the insurance awareness has changed, I think the Pradhan Mantri Jeevan Jyoti is the key which was launched in 2015," he said.
Mathur said insurance awareness has increased manifold which is helping in improving insurance penetration.
"The advance which we have with these three banks is that together they have got over 9,000 branches spread across India. Branches are also in small towns and villages and through these branches we are increasing our insurance penetration," Mathur said.
Currently, 95% of these bank branches are selling insurance products for Canara HSBC OBC Life under the bancassurance channel.
On the company's listing plan, Mathur said they are working on it.
"It's not that next two-three years we can come up with an initial public offer (IPO). For the long-term, definitely there is a plan. We are trying to grow this business which is growing by 35-40% every year," he said further.
The life insurer is also in talks with a few banks to expand business and is also open to agency tie-ups where separate branches need to be opened.
He said the company has expertise and run the bancassurance model successfully for the last nine years.
"We know how to manage this business. So we are talking to few banks. I think there is potential and we would be looking for tie-ups in years to come."
In the current fiscal, the company is targeting a growth of 30%, he said, adding there is huge potential in the digital channel.
In 2016-17, the company grew by 39% and made a net profit of Rs 111 crore.
The company is also investing across digital channels to build capabilities to tap this opportunity, he added.