Mumbai: Private general insurer Tata AIG General Insurance is hopeful of posting around 15 percent growth in premium collections in the next financial year on the back of an expected recovery in economy, a top company official has said.
"FY15 will be better...The premium growth should be around 15 percent," Tata AIG chief executive Kaushal K Mishra said.
The general insurer, which is likely to end this fiscal with around 13 percent rise in premium, attributed pick-up in growth to expected economic recovery in the next financial year.
"If there is a stable government in the Centre post the polls, then by August-September, things will look better," Mishra said.
Increase in middle class spend, rise in sales in auto sector, along with thrust to infrastructure projects, are likely to push growth in general insurance industry, he added.
Amidst slow economic growth, the general insurance industry has seen growth slipping to around 10-12 percent from 18 percent reported a year ago.
Motor insurance, which contributes more than 40 percent of the industry is the key segment to be hit this fiscal due to falling automobile sales.
On target areas for next fiscal, Mishra said the company would continue its focus on commercial lines of business along with expanding its geographical reach during this period.
"We have also filed products in group medical insurance segment before the regulator. We will launch the products as soon as we get the approval," Mishra said, adding the company will focus on SME segment, which is largely untapped as of now.
The Tata AIG General Insurance is a joint venture between the Tata Group and American International Group (AIG) in which Tata holds majority stake. It has posted a 13.98 percent rise in premium collection to Rs 1,756.38 crore in the first nine months of the current financial year.
