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Chubb banking on India, China

BS Banking Bureau in Mumbai

The US-based Chubb Corporation hopes to achieve its goal of becoming a premier global casualty and property specialist by focussing on China and India, according to its chairman and CEO Dean O'Hare.

After he took over in 1988, O'Hare has turned what was a domestic company into a significant international player.

"In 1985, less than two per cent premium came from outside the US. Today it has crossed 20 per cent, with the bulk of it coming from Europe," said O'Hare.

Chubb has operations in over 100 countries worldwide, with its presence spanning across 33 countries.

He was in Mumbai for the launch of HDFC Chubb General Insurance Company, a 74:26 joint venture between the US insurance major and Housing Development Finance Corporation.

This is the first time that Chubb is going mass-market unlike its focus on high networth individuals and at the high end of the market.

O'Hare said: "Our move into this segment is because of our partner HDFC, which has a wide distribution reach and household name that lends itself beautifully as point of sale. Ultimately, we want to achieve the same goals: profit, a high level of service to customers and bring about a good claims service in the industry."

The joint venture will start with the sale of motor insurance business. O'Hare thinks the potential in India is far greater than that in China. The initial focus will be on personal line products with the focus on auto and home.

Subsequently, the joint venture will also look into accident and health lines and commercial insurance covers, said HDFC Chubb director Shrirang V Samant, who will head the operations in the country. HDFC Chubb will at a later stage look at specialty protection products including introduction of directors and liability cover.

"Various Indian boards are today debating to identify what type of coverage to take in order to protect non-executive directors, working directors and independent directors," said HDFC chairman Deepak Parekh.

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