 Chennai:
In order to ward of competition and attract more business
from the banking channel, credit insurer Export Credit
Guarantee Corporation of India Limited (ECGC) has decided
to hike commissions to its bancassurance partners.
 "We
have increased the commission rate to 10 per cent from
3 per cent," says chairman and managing director
A V Muralidharan. Compared to the business procurement
cost of non-life insurers (agent''s commission, brokerage
to brokers) ECGC''s cost is lower even after the recent
hike.
According
to Muralidharan, further hikes if warranted would be
made in a gradual manner. "We don''t want to increase
our business procurement costs all of a sudden."
Presently the company has 17 bancassurance partners
and more deals are expected in the future.
Speaking
about other marketing channels like brokers and agents,
he says, "We are enlisting the services of broking
firms. We are also taking up with the Insurance Regulatory
and Development Authority (IRDA) to permit agents of
non life insurers to market our policies as ours is
a specialised institution." It may be recalled,
IRDA has permitted Star Health and Allied Insurance
Company Limited enlist the services of other non life
insurer''s agents on the ground that it is a specialised
institution selling only health insurance policies.
According
to Muralidharan, the company hopes to achieve a premium
income of Rs750 crore this fiscal. Last year the company
closed its books with a premium income of Rs618 crore.
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