Cholamandalam MS Looking for Auto Insurance

Cholamandalam MS General Insurance Company Limited is looking to increase the amount of business that they do for auto insurance. They have come up with the idea that if they work with Hyundai Motor India Limited and become their exclusive car insurance dealer, then they will drastically increase their business.

They are approaching the vehicle manufacturer and the dealers and asking them to consider them a preferred car insurer for all Hyundai vehicles. This makes the non-life insurer the prevalent car insurer for each person who walks into the dealership looking for a car, and hence car insurance.

The SVP of Cholamandalam MS says that if they get the deal it would give them access to 184 Hyundai Motor’s dealers, as well as 20-25% of the premium. This would increase the company’s car insurance portfolio ten fold as not only would they be bringing in money from those dealerships, but also from future expansions that would be leading up to 250 dealerships eventually in total.

This is the second such deal for the company as they already have a similar agreement with Toyota Kirloskar Motor Private Limited in Bangalore. They have already written about 8,000 car insurance premiums on the Toyota cars to date, and they get about 20% of the total car premium.

The insurance company likes the deal because they are bringing in a steady stream of car insurance premiums, and the dealerships like the deal because they are getting a steady stream of car insurance commissions. It is truly a win-win for both companies.

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