Universal Sompo Sees Prospects In Crop Insurance

Rajiv Kumar, MD and CEO, Universal Sompo General Insurance Co, is bullish about the company’s performance, especially in crop, motor and health insurance segments.

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The central government’s decision to accord priority to crop insurance and to introduce the Pradhan Mantri Fasal Bima Yojana (PMFBY) has in fact come in handy for several insurance companies to venture into this hitherto little explored area. For some, crop insurance has become the top earner during 2016-17 financial year. One such insurer is Universal Sompo General Insurance, India’s first public-private partnership insurance company offering general insurance. A joint venture between Allahabad Bank, Indian Overseas Bank, Karnataka Bank, Dabur Investment Corporation and Japanese insurer Sompo Japan Nipponkoa Insurance, the company now has a definite focus on crop insurance.

“We have done exceedingly well in crop insurance with a business of ₹550 crore during 2016-17,” says Rajiv Kumar, MD and CEO of the company. “Yes, the industry as a whole has gained on account of the new impetus given to crop insurance, especially in the light of the government’s directive to insurance companies, but for us, this business accounted for 40% of our total business, whereas for the industry as a whole, it is about 30%,” he adds.

NEW VISTAD