Oriental Insurance to tap potential in overseas business

Notwithstanding the huge market potential for general insurance business within India, The Oriental Insurance Company (OIC) is gearing up to tap the potential in select overseas destination.

Its office in Qatar is expected to be operationalised by the end of this year. Going forward, it would look at expanding its presence in the SAARC countries as well, AK Saxena, Chairman and Managing Director of Oriental Insurance said.

OIC has offices in Dubai, Kuwait and Nepal. It is now looking to strengthen its presence in Nepal, where it operates more than nine offices, by incorporating a company there. “We are working on this line,” he said, quickly adding “it is easier to open offices in India than in overseas destinations”.

The Chairman was here to inaugurate the corporation’s 30{+t}{+h} regional office in the country and its third RO in Tamil Nadu at Cheran Towers in Coimbatore.After the inauguration, he indicated that the company’s next RO in the State would be opened up at Madurai.

With a network of 30 Regl offices and 1800+ offices (including one-man office), OIC has been able to spread its wings across the length and breadth of the country, reasonably well. “We are trying to use Jan Dhan Yojana and tie-up with banks such as Punjab National and Oriental Bank of Commerce for better penetration,” Saxena said.

The company’s business growth took a hit, when it slipped from 8 per cent last year to 4 per cent this year. When asked to comment about the poor performance, Saxena said “market has been detariffed excepting motor third party and competition between insurance companies become very stiff; premiums rates have dropped nearly 80 per cent. There is no rationale in premium pricing. Risk-based pricing has to come. It is important to charge adequate premium instead of resorting to under-cutting of rates.”

According to Saxena, OIC’s market share is around 10 per cent, but insurance penetration in the country less than one per cent, offering huge untapped potential.

The company is planning to tap this huge opportunity by roping in college and school students by creating awareness about taking a cover. “They can be sensitised and it would also give them an opportunity to earn while still at campus,” the OIC Chairman said.The company meanwhile is looking to purchase properties quite aggressively.

Curated from: Oriental Insurance to tap potential in overseas business

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