IAG to Increase Presence in India as Part of Asia Strategy

Insurance Australia Group (IAG) is increasing its presence in India as a part of its strategy to expand its operations in Asia. Company is aiming to generate 10% of its business from Asia within four years.

As per company so far it has gone quietly with its Asian strategy and now it is getting real traction. Now company is seeing Asia as a big opportunity. Company is shifting from market entry focus to one of driving operational performance from its enlarged regional presence.

As per the company, middle class consumption in Asia excluding Japan is expected to triple to about $12 trillion by 2020.

IAG underwrites around AUD 8 billion of insurance premiums each year and employs 13,000 people.

IAG owns major Australian brands such as NRMA and CGU. It has invested around AUD 720 million in five Asian countries. Through acquisitions and investments, now IAG has established businesses in Thailand and Malaysia, and it is building its presence in India, China and Vietnam.

In India IAG has joint venture with country’s largest lender State Bank of India, SBI General Insurance Company Ltd. In this joint venture SBI holds 74% stake while IAG holds remaining 26% stake.

SBI General Insurance is in the process of setting unique multi-distribution model encompassing bancassurance, agency, broking and retail direct channels. However, bancassurance will be the major channel during initial years.