05 May, 2005
Royal Sundaram Alliance Insurance Company Ltd., in its fifth year of operations, has written Rs 335 crore of premium income during the Financial Year ended March 31, 2005, recording a growth of 28 per cent over the previous Financial Year's premium of Rs 262 crore. The company has demonstrated a balanced approach in developing Retail and Commercial business recording a profit of Rs 5.4 crore.
Commenting on the Company's mission and performance, Antony Jacob, Managing Director, Royal Sundaram said,Royal Sundaram strives to understand the needs of its customers and provide solutions to cater to those needs. We intend to capitalise further on our customer-centric approach. Our ability to build relationships with over 500,000 customers and our growing client base is a testimony to the success of our efforts at providing quality service. In 2004-05, we achieved a Satisfaction Rating of 81 per cent on the basis of Customer Research carried out with AC Nielsen. The research will be repeated in 2005-06.'
Royal Sundaram's satisfied base of over 500,000 Retail customers, managed through its 33 branches, can be attributed to the Company's focus on Customer Service Excellence. 2004-05 was The Year of the Customer and the principles and underlying philosophies of which have been institutionalised within the Business Model.
Royal Sundaram caters to all the major segments in the industry with particular focus on the Retail Insurance segment that offers significant opportunity. Added Mr. Jacob,'We are expecting significant growth in the Retail segment over the next few years. Demographic trends in India indicate major social and economic shifts during the next 10-15 years. More than two-thirds of the population will become literate. The growing and consuming middle class, with significant spending power will drive growth. More employment and higher disposable incomes of households are already encouraging consumers to spend on personal assets including cars, houses and creating Small Businesses.
Royal Sundaram's portfolio reflects a healthy mix of Retail and Commercial Insurance. Retail Insurance accounted for Rs 203 crore, whilst Commercial Insurance contributed Rs 132 crore to the Company's total premium income. Motor was the main contributor, accounting for 48 per cent of Royal Sundaram's total premium, followed by Fire with 19 per cent, Accident and Health16 per cent, Engineering with 8 per cent and Marine with 5 per cent.
Private Motor Car cover is the single biggest component of Royal Sundaram's Retail portfolio, and will continue to play a dominant role. Royal Sundaram supports IRDA's decision to delay the detariffing of Motor Insurance to enable it to be implemented for both Own Damage and for Third Party Liability. Commenting on the decision, Mr. Jacob added 'We see advantages in minimising the disruption to the Industry and its Stakeholders by allowing time for the industry to build a reliable and credible database, on which to base pricing.'
The Company has focused on developing the multi-channel distribution model for marketing and distribution of its products. Royal Sundaram has distribution relationships with American Express, Citibank, Standard Chartered Bank, Repco Bank, SBI-GE, General Motors, ING Vysya, Lakshmi Vilas Bank. In 2004, Royal Sundaram entered into a strategic partnership with Maruti Udyog Ltd. for the distribution of Motor Insurance to the customers.
In April 2005, Royal Sundaram was awarded a Certificate of Commendation by the Confederation of Indian Industry Southern Region, for a Strong Committment to HR Excellence. CII - Southern Region Awards in HR Excellence is a prestigious HR Award category that recognises and rewards companies for exhibiting excellence in HR Practices, based on the well-established European Foundation for Quality Management (EFQM) Excellence Model.
With over 500 employees, Royal Sundaram transacts business through its 33-branch network and a strong agency force of over 1000.
Note to Editors:
Royal Sundaram Alliance Insurance Limited is a joint venture between Sundaram Finance and Royal & SunAlliance, where the latter holds 26 per cent of the venture in accordance with IRDA regulations. It was the first Non-Life Insurer to be awarded a licence by IRDA. Royal Sundaram had an initial capital of Rs 101 crore which was increased to Rs 130 crore in September 2001.
Royal Sundaram's range of innovative general Insurance products for individuals includes Health, Home, Travel, Personal Accident and Motor Insurance for individual and commercial customers. In addition, customised products are provided to customers of the Company's Distribution Partners. For Corporate Institutions, Royal Sundaram offers a wide range of specialised and tailored covers including the Enterprise product , a product designed to cater to the requirements of businesses in the Small and Medium Enterprise segment. The Company also provides Fire, Marine, Engineering, Public Liability and Business Interruption covers.
Royal & SunAlliance Insurance Group plc. is one of the world's largest international Non-Life Insurance companies with 20 million customers and 32,000 employees in 35 countries worldwide. Royal & SunAlliance enjoys a historical association with India, being the first British company to operate in India from the year 1825.
Sundaram Finance is a leading non-banking finance company with interests in hire purchase, leasing, housing finance and asset management. Sundaram Finance has a distribution network of over 125 branches in India.
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