CII Communique - October, 2010

cover storyneeds like basic banking, credit, insurance, investmentand pension. Though the market is the same, they arenot mutually exclusive. Unfortunately, our responseabout what to sell to whom is segmented or industryspecific,leading to a loss of investor focus andmis-selling. This may work in the short term, but isinherently unstable for the entire financial system inthe long term. There’s hence a need for a collectivesolution to this problem.”He added that, “Regulatory and supervisory oversightfaces major challenges in identifying the products,policies, practices and institutions that pose systemicrisks, and in devising methods to deal with these.”Mr. Sanjiv Bajaj, Managing Director, Bajaj Finserv Ltd.reminded the gathering that the fundamentals of insurancewill still ensure sustainability and long term profit. “In therush for short term profit, we forget vision. Growth in theabsence of a sound strategy would result in unprofitableand unsustainable business. It is hence sensible forcompanies to build a core focus for their business assuccess for most profitable companies has come fromfocusing on a few things. Remember always that capitalis precious, customer comes first, profit is paramount andtighter regulation is a reality. Strengthen reputation; intough times, a good reputation is one’s greatest strengths.Renew the trust of partners and consumers so they seeyou as long term partners,” he advised.Mr. Antony J Cherry, Partner, Beachcroft LLP, talked aboutthe processes that companies can employ to increaseprofitability and sustainability, “In place of duplication,substitute limited skill assessment at an early stage; doproactive case management. Instead of inefficient useof people and skill, try segmentation of processes andteams.” He talked about the dangers of businesses thatrely on people skills only, as they are inconsistent, andpointed out that systems and processes have a largerole to play in a complex market.Mr Ravi Trivedy, Executive Director, KPMG, reiteratedthat, “Though opportunity in the insurance sector willcontinue to grow, even in less dense markets, to takeadvantage of it, one will have to improve sales forceproductivity, provide better focused incentive models andcontinue to variabilize cost-to-premium ratio.”The Summit drew the participation of more than 500stakeholders and 26 CEOs from the Insurance Industry.Private Equity, legal and technology providers alsoexchanged their views on developing the market andimproving Insurance penetration in India.Communiqué October 2010 | 13