Multi-brand automotive sales and service provider Carnation Auto is scaling up insurance broking business through its separate arm and plans to significantly increase its presence beyond auto insurance.
The venture, a brainchild of Jagdish Khattar, the former Chairman and Managing Director of Maruti Suzuki, is now focusing on other segments like fire, engineering, marine, liabilities and group health insurance via its wholly-owned subsidiary, Carnation Insurance Broking.
“We had got insurance broking license last year and started in a small way, focusing mostly on our in-house retail customers. Now, we are looking to expand this through our separate arm, “Carnation Auto Managing Director & CEO Jagdish Khattar told PTI.
Elaborating on the expansion strategy of the vertical, Carnation Insurance Broking Pvt Ltd CEO and Principal Sanjeev Gujral said: “Earlier, we were mostly in auto insurance but now we are getting into other areas like fire, engineering, marine, liabilities and group health insurance.”
For this, the company is targeting mid-sized and large corporate houses as clients, for which the company is in talks at present, he added without disclosing details. In order to meet the scaled up business, the company will also increase its manpower.
“At present, we have a team of about 65 people. This will be scaled up to 85 by March 2014. By 2014-15, we should have a team of around 120-150 people,” Gujral said. When asked about the scale of business, he said: “Currently, on the premium side we have around Rs 16-17 crore. We are targeting about Rs 25 crore and by FY15 we are looking at a total of around Rs 100 crore.”
In the first year, the premium break up is 50-50 between corporates and retail. In future, it can be skewed in favour of the corporate side to about 55-45, he added. Headquartered in Noida, Carnation Insurance Broking has presence in various cities, including Mumbai, Hyderabad, Bangalore and Jaipur.
Source : Business Standard
Date: 10th November 2013