LRP PRESENTATION-2016

EAST ZONE

State wise ----------journey

States

AP + Telangana
West Bengal
Orissa
Assam
Total

%
Market
Share
average
of 3
years
7.3%
9.6%
4.6%
5.9%

Avg.
GWP in
crs.average
of 5
years
331.2
291.7
50.9
40.0

7.2%

722.17

Avg.
Combin
ed
Ratio of
5 years

Avg.
NOPs
of 5
years in
Lakhs

97.9%
97.9%
114.8%
96.0%

6.0
4.6
0.8
0.7

174
160
42
36

373
340
62
75

547
500
103
111

23
18
7
4

1
2
0
1

1
1
0
0

67
47
9
12

98.7%

11.5

412

850

1262

52

135

Non
Sales
Total
Sales
Employ Employ
Employ
ees
ees
ees

Physical AWB
offices offices

Non
VSO
Motor
offices
offices

Update on LRP 2016-17 (H1)

Budget

Achieveme
nt

Growth

CoR

MS

AP + Telangana

220.41

204.68

4.20%

108%

6.1%

69%

31%

West Bengal

29.89

26.65

-3.00%

116%

4.0%

60%

40%

Orissa

176.98

169.57

-8.10%

110%

7.4%

69%

31%

Assam

26.61

28.41

17.60%

98%

5.3%

69%

31%

Total

453.89

429.31

-0.20%

108%

6.2%

69%

31%

States

Manpower
Non
Sales Sales

Our Zonal Journey from

2011 2015- EAST ZONE
1.7%
1
:
ars
e
Y
R5
G
A
C

Gain of Market Share

& Time line

Market Share 7.0%

GDPI
2021
- of Industry 28,019
GDPI of Bajaj 1,950
22
Accretion 300

18.2%

Market Share 6.7%

2020
GDPI-of Industry 24,750
21
GDPI of Bajaj 1,650
Accretion 300

22.2%

Market Share 6.2%

GDPI
2019
- of Industry 21,863
GDPI of Bajaj 1,350
20
Accretion 190

16.37
%
%

Market Share 6.0%

2018
- of Industry 19,312
GDPI
GDPI of Bajaj 1,160
19
Accretion 120
Market Share
6.1%
GDPI
2017
- of Industry 17,059
GDPI of Bajaj 1,040
18
Accretion 76

11.54%

7.88%
7.88%

Spread of offices in 2016 17 Till date

Telangana + AP + Orissa
2015-16
Industry Market Share8.3%
GDPI (in crs.)
7162
Bajaj Market Share
5.8%
Loss Ratio
76.9%
Contribution to GWP 7.6%
2015 - 16 Compl (in crs.)
414
No of offices currently123

Increase market
share to 6.9%
primarily in AP +
Telangana

2016 17

2017 18

2018 19

2019 20

Industry Market
Share

8.3%

8.3%

8.3%

8.3%

8.3%

8.3%

Market Share

6.0%

6.3%

6.6%

6.8%

6.9%

6.9%

Total Budget

414

495

607

742

901

1099

94

298

425

637

892

993

34

35

35

35

35

35

VSO No. of Offices

90

255

380

591

844

945

AWB No. of Offices

Total No. of
Offices
Physical No. of
Offices

Non Motor No. of

Offices

2020 2021-22
21

WB + Assam+ NE
2015 - 16
Industry Market Share6.1%
GDPI (in crs.)
4416
Bajaj Market Share
7.3%
Loss Ratio
78.4%
Contribution to GWP 6.3%
2015 - 16 Budget (in crs.)
411
No of offices currently84

2016 17

2017 18

2018 19

2019 20

Industry Market
Share

6.1%

6.1%

6.1%

6.1%

6.1%

6.1%

Market Share

7.4%

7.5%

7.5%

7.5%

7.5%

7.5%

Total Budget

455

545

665

811

981

1202

85

164

231

341

472

573

28

28

28

28

28

28

59

130

194

303

433

534

Total No. of
Offices
Physical No. of
Offices
VSO No. of Offices

Continue with the

current market
share

AWB No. of
Offices
Non Motor No. of
Offices

2020 2021-22
21

Geography wise focus

Last 5 Years
Journey
Bhubaneshwar_Tot
al

LOB Total
Excl. Crop
Insurance

U/W Result
Total of last
5 years
Excl. Crop
Insurance

CAGR

U/W Result
Total Excl.
Crop
Insurance2
015-16

U/W
Result
Motor of
last 5
years

U/W
Result
Motor201
5-16

5088.45

10.9%

-604.71

-180.54

-569.99

-174.41

Durgapur_Total

2799.46

19.3%

104.31

-9.06

71.24

-17.66

Guwahati_Total

4003.63

15.4%

114.52

-38.42

76.29

-42.99

22924.31

10.4%

300.18

126.65

274.41

197.91

Siliguri_Total

3448.00

15.8%

57.06

-20.42

117.92

11.43

Vijayawada_Total

3927.60

12.8%

55.98

-41.47

88.55

-36.00

Vizag_Total

5065.89

14.1%

39.34

113.59

361.47

67.27

Warangal_Total

2872.87

9.0%

-92.35

-118.69

-78.21

-105.76

21249.63

10.9%

280.82

-5.18

152.88

49.60

KolKata_Total

Hyderabad_Total
Fig in mn

EAST Overall
Finance Lob

CoR 1213
-2364.7%
AVIATION
63.1%
ENGINEERING
113.9%
GROUP HEALTH
105.0%
HEALTH
-18.2%
LIABILITY
109.1%
MARINE
130.2%
MISC
91.2%
MOTOR - 2W
91.8%
MOTOR - 4W
99.8%
MOTOR - CV
137.3%
MOTOR - CVTP
MOTOR - OTHERS 305.8%
51.2%
PA
97.8%
PROPERTY
65.6%
RURAL
102.0%
TRAVEL
54.6%
WC
94.7%
Grand Total

CoR 1314
216.2%
88.3%
96.1%
89.4%
32.1%
103.2%
108.7%
88.1%
94.0%
105.3%
131.8%
466.8%
4.8%
92.7%
93.1%
132.3%
45.7%
96.8%

CoR 14- CoR 1515

16
71.8%
-78.2%
85.5%
68.6%
134.4%
129.9%
96.7%
101.0%
27.1%
38.5%
81.2%
124.9%
79.1%
162.5%
87.4%
100.3%
96.7%
99.2%
111.7%
97.6%
151.9%
101.0%
286.5%
126.8%
89.3%
149.6%
162.3%
94.2%
32.3%
40.7%
52.0%
85.8%
57.1%
70.4%
102.2%
99.9%

CAGR
#DIV/0!
-14%
8%
25%
5%
6%
17%
8%
12%
5%
24%
248%
33%
14%
-8%
5%
5%
9%

FY 1213
0.0%
2.4%
4.3%
2.6%
3.5%
0.8%
0.5%
6.5%
38.4%
31.4%
3.8%
0.0%
0.7%
6.2%
0.9%
1.1%
0.6%
100.0%

MIX %
FY 13- FY 1414
15
FY 15-16
0.4%
-0.1%
0.0%
2.0%
1.2%
1.2%
4.6%
3.7%
4.1%
3.0%
3.5%
3.9%
3.7%
3.1%
3.2%
0.9%
1.0%
0.7%
0.4%
0.3%
0.6%
6.6%
6.2%
6.2%
38.7%
39.5%
41.7%
29.1%
26.9%
27.6%
4.7%
5.6%
5.5%
0.0%
0.1%
0.5%
0.9%
1.1%
1.3%
7.2%
6.8%
7.0%
0.8%
5.0%
0.5%
1.0%
1.1%
1.0%
0.6%
0.6%
0.5%
100.0% 100.0% 100.0%

LOB Mix to be achieved in the next 5 yearsZone

Year

2016-17
Mix

Prem
Compl
Exp

2017-18
Mix

Growt
h

Mix

Prem

2019-20

Growt
h

Mix

Prem

2020-21

Growt
h

Mix

Prem

2021-22

Growt
h

Mix

Prem

Growt
h

741

3%

67.00
852.24 15%
%

63.50 986.15
16%
%
5

62.50 1176.2
19%
%
5

60.50 1392.1
18%
%
05

1.50%

15.6

8%

2.00% 25.44

63%

2.00% 31.06

22%

2.00% 37.64

21%

3.00% 69.03

83%

Group
4.00%
4.00%
Health
38.57

41.6

8%

4.00% 50.88

22%

4.00% 62.12

22%

4.00% 75.28

21%

4.00% 92.04

22%

Motor

74.50
71.25
%
718.37
%

Prem

2018-19

Engg. 1.50%

14.46

Liabilit
1.50%
1.75%
y
14.46
Propert
8.00%
9.00%
y
77.14
Health 4.50%
Travel. 1.50%
Others 4.50%
Total

43.39
14.46
43.39

14%
37%

19%
18.2

26%

2.00% 25.44

93.6

21%

9.50% 120.84 29%

6.00%

62.4

44%

8.00% 101.76 63%

1.50%

15.6

8%

1.50% 19.08

5.00%

52

20%
8%

100.00
100.00
1040
%
964.25
%

Fig in crs

CAGR

40%

2.50% 38.825 53%

2.50% 47.05

21%

2.50% 57.525 22%

10.50 163.06
35%
%
5
10.00
155.3 53%
%

10.50
197.61 21%
%
11.00
207.02 33%
%

10.50 241.60
22%
%
5
12.00
276.12 33%
%

22%

1.50% 23.295 22%

1.50% 28.23

21%

1.50% 34.515 22%

6.00% 76.32

47%

6.00% 93.18

22%

6.00% 112.92 21%

6.00% 138.06 22%

100.00
1272
%

22%

100.00
1553
%

22%

100.00
1882
%

100.00
2301
%

21%

22%

32%
26%
45%
19%
26%
19%

ODISHA in Past

Finance Lob

CoR 12- CoR 1313

14
ENGINEERING 55.5%
59.7%
GROUP
204.8% 40.4%
HEALTH
HEALTH
118.5% 75.3%
LIABILITY
88.1%
88.6%
MARINE
39.8% 208.5%
MISC
104.5% 145.5%
MOTOR - 2W 128.2% 138.9%
MOTOR - 4W
87.8% 117.1%
MOTOR - CV 105.1% 116.6%
MOTOR - CVTP 142.8% 168.1%
MOTOR 6473.2% 6590.2%
OTHERS
PA
205.0% 111.2%
PROPERTY
92.0% 232.3%
RURAL
-880.1% 197.8%
TRAVEL
93.6%
76.9%
WC
68.7%
39.3%
Grand Total
100.5% 121.6%

CoR 14- CoR 1415

15
60.9%
9.0%
161.5%

88.3%

86.2%
25.4%
55.2%
28.6%
182.1%
106.5%
123.2%
200.9%
11775.5
%
66.9%
68.2%
1131.3%
47.9%
60.8%
116.5%

84.2%
84.1%
42.6%
238.1%
314.4%
122.5%
103.0%
102.0%
532.8%
147.0%
137.3%
61.1%
64.5%
69.0%
118.9%

MIX %
FY 13- FY 1414
15 FY 15-16
1%
1%
1%

CAGR
13%

FY 1213
1%

-59%
21%
87%
31%
11%
-26%
24%
-5%
9%

7%
2%
0%
0%
0%
7%
26%
49%
7%

12%
2%
0%
1%
0%
6%
29%
41%
8%

0%
2%
0%
1%
0%
4%
36%
42%
11%

0%
3%
0%
1%
0%
3%
44%
37%
9%

405%
4%
17%
94%
-14%
6%
4%

0%
0%
6%
0%
0%
0%
100%

0%
0%
7%
0%
0%
0%
100%

0%
0%
11%
0%
0%
0%
100%

0%
0%
9%
0%
0%
0%
100%

LOB Mix to be achieved in the next 5 yearsOdisha

Year
Motor
Engg.
Group
Health
Liabilit
y
Propert
y
Health
Travel.
Others
Total

2016-17
Mix

Prem
Compl
Exp

2017-18
Mix

Prem

72% 43.48

62% 40.30

2% 1.21

2% 1.30

0.12

0.33

0%
0%

12% 7.23

1%

1% 0.65
16% 10.40

8% 4.82

12% 7.80

0% 0.23

1% 0.33

5% 3.16

6% 3.90

100% 60.25

Fig in crs

100% 65.00

2018-19

Growt
h
-7%
8%

Mix

59% 42.48
2% 1.44

162%
1%
#DIV/0
!
44%
62%
43%
23%
8%

Prem

0.36

1% 0.72
16% 11.52
16% 11.52
1% 0.36
5% 3.60
100% 72.00

2019-20

Growt
h
5%
11%

Mix

56% 46.48
2% 1.66

11%
1%
11%
11%
48%
11%
-8%
11%

Prem

0.42

1% 0.83
16% 13.28
19% 15.77
1% 0.42
5% 4.15
100% 83.00

2020-21

Growt
h
9%
15%

Mix

50% 50.00
3% 3.00

15%
1%
15%
15%
37%
15%
15%
15%

Prem

0.50

1% 1.00
18% 18.00
22% 22.00
1% 0.50
5% 5.00
100% 100.00

2021-22

Growt
h
8%
81%

Mix

46% 55.20
3% 3.60

20%
1%
20%
36%
40%
20%
20%
20%

Prem

0.60

2% 2.40
18% 21.60
25% 30.00
1% 0.60
5% 6.00
100% 120.00

Growt
h
10%
20%

CAGR
5%
24%

20%
37%
140%
20%
36%
20%
20%
20%

39%
24%
44%
21%
14%
15%

Where do we want to
leap
Which Line to expand in :
Health

CoR across geographies is

Retail Property

CoR across geographies is

Other Non Motor

12--13
105.0%

13--14
89.4%

14--15
96.5%

15--16
101.0%

12--13

13--14

14--15

15--16

97.8%

92.7%

162.3%

94.2%

CoR has been < 70%

Motor
Motor Pvt Car
areas like
Motor 2W

Though CoR has moved up across the states, we can still push in some
West Bengal, Parts of AP (incl Tel)
Across except in NE, Odisha and parts of Telangana.

15

Where do we want to
leap
AP+ TEL

West Bengal

NSDP 9.5 Lac crs

Population 9.13 crs

Ins Penetration
Ins Density
Literacy

NSDP

Ins Penetration

386

GDPI CAGR in last 4 yrs w/o Agri 11.4%

Avg CoR in last 4 yrs

99%

Literacy

90.5K

GDPI CAGR

in last 4 yrs w/o Agri

10.4%

Avg CoR

688
68%

Per Capita Income

incl. Hudhud (CV is

0.67%

Ins Density

77%

Per Capita income

Population 8.43 crs

0.44%

8 Lac crs

79K
(All India
13.6%)

(CV is adverse) 97%

adverse)

Motor contribution
NSDP contribution
Services

64%

77%

Motor contribution

23%

(w/o PWC)

NSDP contribution

Services

Mfg 13%
Agri

78%

68%

Mfg 9%
Agri

23%
16

West Bengal

Has opportunity
77% literacy
7800+ CSCs active and has earned 13+ crs comm. Highest comm in
country. ( SAHAJ can play a role)
Growing Services (Tourism, Transport, Banking, Insurance etc.) which is
now employing 50% + employable population
Low Per capita income means products in Health
Having EMI
Small SI

West Bengal

The economy is mainly Agriculture with 50% of the population depending on

it, contribute 20% to NSDP.
Services has seen a rise in when it comes to its contribution in NSDP from
1990 onward, now contributes 50%+ to NSDP
Construction
Trade, Hotels etc
Transport and communication
Banking and Insurance

Manufacturing has been a very small contributor to NSDP (that too mainly in
unorganised sector), contributes 17% to NSDP.
Hence the disposable income as compared to other states
18

Action Plan
Products & Processes
Which are simpler with built in pre-existing coverage to avoid
complication.
Hospital definition need be simplified.
SI need to be understood, hence First Loss products will be suited in
property
Aadhar based Insurance, for better identity and avoiding fraud,
Insurance by using App
Group based cover will mean lower per capita premium and SI on AOA:
AOY basis
Property Insurnace to address local complexities, like
non availability of title papers in Hills
Class of construction

Involving the Gram panchayats in both procuring and settlement

19

How to leap
The critical point is of driving NM biz in general and Health Retail in particular. How?

Retail Health driven by Health Vertical

Creating a separate team to be driven by Health Vertical resource.
Each RO to have 5 members and BO to have 3. Avg salary cost of 3.5 lacs
Theyll be only there to drive Health Retail.
Theyll be required to recruit 50 IMDs in first 2 months.
7K*25*12*31= 6.51 crs of Fresh biz. in the year 17-18.
18-19 well have another similar team, the average premium shall become 10K and contributing imds 40 to give 25 crs + of Fresh biz.

Well need to make use of POS option for Health in particular.

Well need to use imds of particular influence on following groups
Local political groups
Religion / Tribe
Caste groups

Property
Our Bank tie-ups can provide a good way to grow
With mapping of VSOs the issue of reaching them has been addressed to some extent.
Price support is needed to increase our penetration in the loan book.

20

How to leap
Cross-sell
There is an opportunity in cross sell with NOP distribution as below;
Motor
Retail Health

75% - 77% ( 2W 34% and 4W 26% )

3% - 5%

Hence ideally there is a possibility of CS to 7 lacs 2W and 4W customers.

Issue are
Contactability
IMDs ability to sell
Teams ability to sell
Lack of Rigorous follow-ups

Realistically looking to MD being the major contributor, we should aim at

converting at least 40% of the 4W customers
12.5 L* 26%

1.3 L

Health @ 4%

0.5 L presuming all are cross sold

Balance that should be target 0.9 L * 5K

------ 45 cr

21

AP
AP has in contract a better Industrial development environment.
The newly carved state has advantage of a known administrator at the helm.
He has already identified areas of industrial development, both in terms of
HUBs
Kind of industries

The investment is yet to take off but is poised to take off in next 2 years.

INVESTMENTS
INDUSTRIAL INFRASTRUCTURE
3 Industrial Hubs & 3 Industrial
Corridors
4 MajorPorts,4ActiveAirports
Excellent Rail & Road Network
32 SEZs, 258 Industrial Parks
$1.5bn investment on infrastructure
JICA supported Chennai
Bangalore Industrial Corridor (CBIC)
ADB supported Visakhapatnam
Chennai Industrial Corridor (VCIC)

INVESTMENTS IN
INFRASTRUCTURE
Ports & Airports
Water Grid
Tourism
Gas
Roads, Rails & IWT
Energy
Social Infrastructure
23

Vishakhapatn
am Hub
Amravati
Hub

Tricity Hub Tirupati,

Nellore and
Chitoor

24

THRUST AREAS FOR AP GOVT.

Agro & Food Processing
Life Sciences (including pharmaceutical, biotechnology &
medical equipment)
Textiles & Apparels
Electronics & IT
Mineral based industry
Automobiles & Auto Components
Petroleum, Chemicals (including Fertilizers) and
Petrochemicals
Energy
Leather
Aerospace & Defence
Additional Power plant capacity of 17000 MW, in addition
to existing 8300 MW, by 2019

25

What to do
How to take advantage of this opportunity
TEAM- led by a senior to build necessary liaison
so that we are ready.
U/W CAPACITY to be looked into keeping the
industries and infrastructure.
PROCESS we need to have a short TAT and
that is possible only if we cut the normal route
of referrals.
26

Challenges in general
Managing the growing TP awards
Managing the growing menace of Frauds ( Fake policies, Vehicle swapping etc.)
Manpower
Managing growing expectations of biz partners

Proposed Man power deployment for next 3

years
2016 - 17

2017 - 18

2018 - 19

Zone

East

Sales
Non Sales
Support
Total

1105
395
79
1579

Zone

East

Sales
Non Sales
Support
Total

1139
407
81
1627

Zone

East

Sales
Non Sales
Support
Total

1173
419
84
1675

THANKS