From correspondents in Delhi, India, 01:40 PM IST
Auto Risk Management Services (Pvt) Limited, an established leader in the Indian market providing pre-risk inspection services and other related insurance services through their network of 489 branches throughout the country, has announced a claims processing partnership with Innovation Group plc (LSE:TIG.L), the leading provider of enterprise software, business process outsourcing (BPO) and repair and service network management solutions to the global Property and Casualty industry.
The 50:50 JV which has been in the planning stages for over a year is underpinned by 4 blue chip insurance (Future Generali, Reliance IFFCO-Tokio, ICICI Lombard) & 2 Fleet customer (ALD & LeasePlan) agreements. The India operation is up and running and already handling thousands of claims transactions for the customers every month and expected to process several thousand claims in the first year of operation from the initial customers.
The partnership, known as Innovation Auto Risk, is headquartered in Delhi with claims servicing operations across India. India auto claims are rising in line with the non-life market for insurance to an estimated 7,000,000 incidents annually. Innovation Auto Risk will address the market requirement for improved claims processes to deal with these rising volumes while providing improved customer service, fraud management and business analytics.
“Great care and effort was put into the shaping of the initial Innovation Auto Risk partnership. While many ventures are announced few undergo the amount of detailed planning and preparation that has gone into this one. The venture in India will use a combination of proven Innovation Group technologies and processes coupled with Auto Risk’s strong market reputation, knowledge, integrity and top flight service delivery”, says Mr. Ashwani Sethi, MD, Innovation Auto Risk.
The penetration level of general insurance in India is 0.60% of its GDP and the premium is likely to grow at CAGR of 20% in next 6 year to reach over Rs.1 lakh crore by 2015 from current size of Rs.28,000 crore. The motor insurance business is about 50% of the general insurance industry and motor insurance claims have risen from 4.5 million in 05-06 to 6 million in 06-07 and 7 million in 07-08 respectively in India.
The new Joint Venture is expected to capture 25% of the market with their vast experience and local know-how and innovation’s global expertise.
With IT spending in the India Insurance sector expected to grow at a compound annual growth rate of 37.5% per annum by 2012 the focus for insurers will be on finding partnerships that actually deliver automation and processing that is up to the challenge of scale and growth.
“We are delighted to team up with the top class team at Auto Risk in the formation of Innovation Auto Risk. It is our privilege to service 5 of India’s 20 Property, Casualty and Fleet customers as the foundation of our efforts to be the market leader in India for advanced insurance technology and claims processing”, says Mr. Martin Jones Chairman of Innovation Auto Risk & COO Asia & Australia.
“We are confident we will achieve significant growth by providing excellent service to our customers and are pleased to be a first mover in this important high growth market. We also look forward to building out our services to suit the changing India market. While we do process over 4,000,000 claims on behalf of customers across the globe we understand that our success is strictly based on learning and listening in our local markets to local customers”, Mr. Jones adds.
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