Kotak Mahindra Bank Limited (KMBL) announced its plan to foray into general insurance business today at Mumbai. KMBL, today, received approval from Reserve Bank of India (RBI) to form a subsidiary to enter the General Insurance business.
KMBL had earlier received an in-principle approval from Insurance Regulatory and Development Authority (IRDA) for incorporation of a General Insurance company.
The company would now be required to apply and complete the registration process with IRDA to act as a General Insurance Company, subject to the provisions of Insurance Act 1938, Companies Act, 2013, regulations notified by IRDA and all other laws prevailing in India.
Gaurang Shah, President – Asset Management, Insurance and International Business, KMBL, said, ‘"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."
Mahesh Balasubramanian has been named as Chief Executive Officer of the new venture. Balasubramanian, currently Executive Vice President and Co-Head, Branch Banking, Kotak Mahindra Bank, brings with him over two decades of cross functional experience in financial services. He has spent over a decade with Kotak Mahindra Group. He was part of the integral team that helped grow the consumer bank and its branch network.
Balasubramanian added, "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."
Established in 1985, the Kotak Mahindra Group is one of India’s leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group’s flagship company, received a banking license from the Reserve Bank of India (RBI).