ACCESS INFORMATION SYSTEMS LTD.


Press Clips

INDIA INC
CEO SPEAK
‘There Is Space For Everybody As The Market Is Growing Fast’

On 6th January, Cholamandalam General Insurance Company Ltd (CGICL) had hit the headlines by roping in Japanese insurance giant Mitsui Sumitomo Insurance Company Ltd (MS) as a strategic partner. By offering 26 per cent stake to Mitsui, the Murugappa group promoted general insurance company has shed its image as the second private insurance company, after Reliance, which did not have a foreign partner. The marriage with Mitsui also lead to the rechristening of the company as Cholamandalam MS General Insurance Company Ltd (CMSGI). While the strategic partnership with Mitsui is not expected to make any management changes, it indeed will bring synergies to the companies, which hit the market with a range of products in October 2002. CGICL chief executive Arun Agarwal spoke to P Vinod Kumar of The Financial Express about a range of issues concerning the company as well as the general insurance market in general. Excerpts:

What is your take on the current scene in the general insurance market?
The Indian insurance market, especially general insurance sector, is fast developing. It is estimated to be worth $ 2.5 billion and is still growing. There are lots of untapped and under-serviced areas, which now are getting some attention from the players. It is also equally important to note that by liberalising the sector, the government has opened up the floodgates of competition. Players are now vying each others to service the market. If it was a sellers’ market earlier, the situation now have completely changed. Regulations prescribe strict transparency and policy holders’ rights are also underlined. On the other hand, since the market is growing exponentially, everybody is gaining business. In short, the going is good for both companies as well as customers.

What business model do you follow?
We are following a comprehensive business model with emphasis on quality, speed and transparency. This, we think, will make us different from others. Further, we give equal importance to both corporate and retail segments. Our products are designed keeping in view what the customer wants. In other words, you can, in a way, call them highly customised products. This gives us a clear edge in the market place. Second, we maintain a close relationship with our customers as well as our agents, corporate agents or otherwise. Because, they are the company’s faces on the ground. People know the company through them. We have given them all good training as laid down by the regulator so that they interact with the customers more elegantly as well as effectively. In a nutshell, we try to maintain a very good relationship with our channel partners so that our customers are served better.
Besides, we use information technology (IT) in a big way in our entire operations, right from issuing policies to claim settlement. It is a web enabled insurance application integrated software called Access Insurance Management System. And all our offices are connected with each other and therefore, the communication flow is easy and smooth. All these help us to do business with ease and avoid time lag.

What is your USP?
If you ask me to sum it up in one word, I would say differentiation. In products as well as in services. There is only little leeway as far as the tariff policies are concerned but here too we try do offer the best and what our customers want. But the differentiation mainly come in the non-tariff products. The real game is actually being played here. The winner will be the one who got his ideas right and dare to innovate. We expect to emerge as a clear winner in this game in the end.

When do you expect to break even?
We expect to break-even by the end of the third year of our operations. By the time our topline would be around Rs 300 crore. This year, practically we have just begun so there is no point in talking about numbers. But next financial year, we expect a topline of Rs 100 crore.