Shriram General Insurance posts record show in FY24, charts ambitious growth plans

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Shriram General Insurance Company outlined its five-year growth plan, aiming to grow the share of the non-motor business from 8.5 per cent now to 15 per cent, while increasing the number of agents from 69,000 to 2 lakh. The expansion strategy includes deeper penetration into small towns and rural areas to target the uninsured population.

The joint venture between Shriram Group and Sanlam Group achieved record performance in FY24, with a 34 per cent growth in gross direct premium underwritten, totalling ₹3036 crore. This marked the best fiscal year in the past 15 years, maintaining a trend of outpacing industry growth and profitability.

During FY23, the non-life industry grew by 16.4 per cent, while Shriram General grew by 29 per cent. In FY24, Shriram’s growth outpaced the industry with a 34 per cent increase, while the industry grew by 13 per cent. Our market share has also gone up from 0.88 per cent in FY23 to 1.05 per cent in FY24. While the motor business grew by 33 per cent, the non-motor business recorded a 43 per cent increase in FY24,” Anil Aggarwal, MD and CEO, Shriram General Insurance Company told businessline.

Expansion Plans

The company credited its record performance to branch expansion and increased agent and financial advisor recruitment. It expects 30 per cent growth in the current fiscal year as well.

In FY24, the share of motor business came down to 91.5 per cent from 92 per cent in FY23. Over five years, the company expects the motor share to come down further to 85 per cent in five years. It will continue to open more branches in non-metro locations. Its current network includes 276 branches, up from 235 in FY23. It is planning to add 25 branches in this fiscal.

With agents as a major business contributor, the company aims to increase its strength from 69,000 to about 2 lakh in five years. It plans to add about 20,000 agents in FY25, particularly focusing on small towns and rural areas.

Aggarwal said the company was also looking at driving growth in its new business areas. It is aggressively focussing on electric autorickshaw segment, which has recorded 150 per cent growth in FY24, while it is targeting electric two-wheelers and electric cars too.

As the health segment has seen strong traction in the post-Covid period, the company said it has already taken baby steps in the segment with the launch of benefit health products covering critical illnesses. However, it has yet to enter the indemnity health product segment.

Also read: Satin Creditcare Network reports 33% increase in Q4 FY24 net profit

Claim settlements improved in FY24, with the number of settled claims rising to 1.81 lakh from 1.47 lakh and the claim settlement period decreasing. Shriram General aims to settle motor third-party claims through proactive negotiation, reducing reliance on court orders. Furthermore, the company plans to reduce outstanding claims from 38,250 to 30,000 over three years.

The company issues about 83 per cent of its policies through digital mode and hopes to reach a 100 per cent level in the next two years.