The Hindu : Business : Max New York to foray into micro insurance

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Wednesday, Nov 29, 2006
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Max New York to foray into micro insurance

Special Correspondent

NEW DELHI: Max New York Life Insurance is poised to foray into micro insurance as part of its plans to broad-base business in the insurance sector.

"We are in the early stages of talks with a general insurance company for a tie-up for the micro insurance foray,'' the joint venture company's Managing Director and CEO, Gary R. Bennett, told newspersons here on Tuesday.

At present, the company is looking at different aspects of micro insurance by way of product packaging and pricing and chalking out the distribution models with its prospective partner in the general insurance sector. Mr Bennett, however, did not disclose the timing of launching the venture. On the issue of fresh capital infusion, Mr Bennett said Max Yew York planned to raise its paid-up capital to Rs. 1,000 crore in the next two years and subsequently to Rs. 1,500 crore.

The current paid-up capital of the company is Rs. 617 crore, of which Max India holds the majority stake of 74 per cent while the U.S.-based New York Life has the balance 26 per cent.

New products next year

Max New York Life plans to roll out seven new products next year and expects to achieve break-even by 2008-09. At present, the company offers 25 products.

Earlier, addressing newspersons, New York Life Chairman and CEO Sy Sternberg noted that lifting the foreign investment cap on insurance would add more depth to the sector and make available adequate funds for infrastructure development.

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