Digital Presence of New India Assurance reduced COVID-19 impact on its business: Atul Sahai, CMD
It has impacted our business negatively. We are facing losses especially in the motor business segment but hope that it will get better in the near future. New India Assurances strong digital presence is an advantage for us as it is helping us in reducing the losses that would have happened because the offices are not functioning properly as we are not able to open.
Atul Sahai, Chairman cum Managing Director, the New India Assurance Co. Ltd., talks about the impact of COVID-19 pandemic on the insurance industry, the contract of 20 lakh health workers for insurance coverage of Rs 50 lakh and online business of his company during an interview with Swati Khandelwal, Zee Business. Edited Excerpts:
Q: How COVID-19 affected the insurance industry in general and what is expected in future?
A: It has impacted our business negatively. We are facing losses especially in the motor business segment but hope that it will get better in the near future. New India Assurance’s strong digital presence is an advantage for us as it is helping us in reducing the losses that would have happened because the offices are not functioning properly as we are not able to open. This means there are no walk-in customers. It has had a bit impact on the business, which is being compensated as the number of claims has gone down because people are not getting out and vehicles are not moving on the roads. But, it has a negative impact on the industry in terms of business but we are hopeful that it will be fine in coming time.
Q: Your company, in recent past, received a contract of 20 lakh health workers for insurance coverage of Rs 50 lakh at a premium of Rs 550. How the contract will affect the company’s margin and revenue?
A: The contract will have no impact on the company. We are a big company and we need to stand together in the fight against the COVID-19 pandemic at the national level. This is our way to show that we are standing for the country and with the present government. SO, it will not have any impact on our business and it is based on our actuarial assessment. Secondly, we are happy to participate in it.
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Q: Can you highlight how much of our business comes from the online platform? And can you give us an idea of how much of our business is affected due to lockdown?
A: It will not have much impact on our online business. In fact, 24-25% part of our overall business comes from the online platform as our agents have the portal and even the company takes direct recharge. We have also tied up with the aggregators. The percentage of online business has gone up during these hard times as the maximum of walk-in customers have also chosen the online platform for the purpose. As I told you in your first question that our digital presence is very strong and we have got an advantage of it that our business has not been impacted as much as it could have been.
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