Kotak Mahindra Bank To Enter General Insurance Market, Will Soon Set Up Insurance Subsidiary

Following the successful acquisition of ING Vyasa, Kotak Mahindra Bank plans to enter the general insurance market. The bank will soon launch a subsidiary insurance company as it has received the requisite approval from the Reserve Bank of India (RBI).

“The General Insurance business in India is currently a Rs 77,000 crore premium per annum industry and is growing at a healthy rate of 17%. It provides a cover of close to Rs 1,000 lakh crore,” said Gaurang Shah, president of Asset Management, Insurance and International Bank division of Kotak Mahindra.

“With the addition of General Insurance business, Kotak Mahindra group with existing presence across banking, wealth management, life insurance, broking, mutual funds and private equity will be able to offer the complete range of financial products and services to our retail and wholesale customers. Our knowledge and experience across the BFSI spectrum generates excellent cross synergies that we hope to leverage in our General Insurance business to the benefit of our customers and stakeholders alike,” added Shah.

The company has also received in-principle approval from insurance regulatory body Insurance Regulatory and Development Authority (IRDA) for commencing the new subsidiary.

The bank has appointed Mahesh Balasubramanian, the current executive vice-president and co-head of Branch Banking vertical of the bank, as the CEO of the new general insurance company.

“With Kotak Mahindra group’s increasing distribution network, growing brand equity and consumer franchise, we believe we will be able to leverage synergies and add significant value to the general insurance business. Being a new entrant, we will have opportunities to embrace new technologies and developments in the digital world to provide innovative products and solutions which will deliver superior customer experience,” said Balasubramanian.

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