Shriram General Insurance launches new vertical to focus on rural insurance business

Next year, Shriram General Insurance plans to focus on 600 talukas where insurance penetration is low. Areas with a population between 20,000 to 1 lakh will be targeted. In many cases the sum insured will be comparatively small, as the average income of people in such areas is usually from 20,000 25,000.

According to a press release, the insurer will offer simple products that can create value for the rural population. As per the customer base and target demographic, Shriram General Insurance has developed homecare and personal accident insurance covers. In addition, it will offer long-term two-wheeler insurance, goods-carrying commercial vehicle insurance, and policies for small businesses, properties and shops.

Lack of awareness, limited access and affordability are some of the major reasons for low insurance penetration in rural and semi-urban areas.

Shriram General Insurance will conduct extensive awareness programs and look after informal networks including SHG members, two wheeler sub-dealers, life insurance agents, rural bank branches and banking correspondents. According to the press release, the company has bancassurance partnerships with 16 cooperative and rural banks.

The distribution will be targeted through the Common Service Center model, in which insurance services are extended through digital kiosks under the ‘e-Mitra’ portal. It will also look at opening micro-offices, which will facilitate point-of-sale and doorstep delivery of insurance to remote locations in collaboration with a team of 40,000+ agents.

Enabled with a digitally empowered team, customers will be able to avail round the clock, completely paperless insurance in a matter of minutes, without visiting a branch and submitting physical documents. The company has invested in the latest technology to deliver services through chat bots, online claim services and digital payment facilities. This is in addition to heavily relying on the mobile application ‘MySGI’ for all types of services with the benefits of online availability, less documentation and quicker claims settlement, the press release said.

Anil Kumar Agarwal, MD & CEO, Shriram General Insurance, said at the launch, “The farmers of India and their agribusinesses play an integral role in the development of the country. Rural insurance will ensure that the future of families living in rural areas is secure and safe from uncertainty. Shriram Group has always placed the common man at the center of all our business endeavors. We have ensured that our rural insurance schemes are easy to understand, affordable, cover monetary losses and help people in rural areas become independent. We expect the rural insurance company to contribute one-fourth of the sale proceeds or 16% of the total premium income by FY25.”