HDFC ERGO focusing more on SME sector: Anuj Tyagi

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Saurabh Gupta | 17 Oct, 2013
HDFC ERGO has carved out a separate vertical called 'SME Unit' with dedicated sales, underwriting, claims and operations team to cater to the general insurance requirements of small and medium enterprises (SMEs), Member of Executive Management and Head - Corporate Business & Rural Agri Business, HDFC ERGO General Insurance Company Ltd., Anuj Tyagi told SME Times in an interview.

Excerpts of the interview...

HDFC ERGO is one of the very few insurance companies to provide a product basket focused on the small and medium enterprise (SME) sector. What is it that HDFC ERGO feels bullish about this sector and why?
Anuj Tyagi: As an important player in the general insurance space we at HDFC ERGO are committed to offer the best of solutions to cater to the small and medium enterprises. SME's play an important role in the economy of our country. MSME's contribute to about 40 percent to the industrial production of the country and 35 percent of the total Indian Industrial Export. Keeping this in mind this sector needs to be given the due attention it deserves. We at HDFC ERGO have carved out a separate vertical called SME Unit with dedicated Sales, Underwriting, Claims and Operations team to cater to the general insurance requirements of SMEs.

SMEs are small entrepreneur driven businesses with less expertise about the need for insurance, how is the company creating awareness and facilitating demand for its products?
Anuj Tyagi: Insurance awareness and need is already there, what has been lacking is the customized solutions and reach to these segments. We are introducing web based on-line issuance of insurance Quotations and Policies for Fire, Liability and Employers Liability products. This is an automated facility the will be rolled out to our channel partners (Agents, Brokers and Bank) to enable them to achieve a faster turnaround time in meeting the expectations of our customers.

What is the role of intermediaries in this business and what are the facilities that the company is providing them?
Anuj Tyagi: Distribution through Agents / Brokers / Banks plays very important role in reaching out to SME clients across country & remote locations. The entire business model is based on the basis of distribution reach & ability to provide knowledgeable / risk management solutions to SME's to ensure appropriate risk cover. All the intermediaries are well trained & developed from overall perspectives to serve our customers requirements.

What is the current size of this business and what are the future goals?
Anuj Tyagi: Our SME team is present across the country which is fully functional at key locations viz., Mumbai, Pune, Ahmedabad, Delhi, Chandigarh, Kolkata, Chennai, Hyderabad, and Bangalore. We are spreading our wings fast and hope to cover the rest of the locations in the country in a phased manner.

Which sectors and markets is the company focusing on?
Anuj Tyagi: As part of our over all strategy ultimately we would like to cover all segments of the markets covering all locations. We are looking at IT / Education sector as a preferred client base. We have started SME roll out in top 10 locations and will continue to increase our presence over the period.

Technology is playing a pivotal role in the overall financial services sector. Any innovations in the technology aspect which has helped HDFC ERGO reach out to its customers?
Anuj Tyagi: We are introducing web based on-line issuance of insurance Quotations and Policies for Fire, Liability and Employers Liability products . This is an automated facility the will be rolled out to our channel partners (Agents, Brokers and Bank) to enable them to achieve a faster turnaround time in meeting the expectations of our customers.

How does HDFC ERGO plan to optimize its products and services?
Anuj Tyagi: We have started SME roll out in top 10 locations and will continue to increase our presence over the period.