While the financial crisis that led to a slowdown in the economy has driven several companies to put on hold their expansion plans and freeze any fresh recruitments, Max New York Life Insurance has drawn a massive expansion plan for the next three years.
The company plans to scale up its branch network from current 450 branches to 1,600 over the next three years. The company plans to add around 10,000 employees also.
The company has already added 250 branches and 8,000 employees over the past ten months. “We will also infuse fresh capital and we will raise the capital from Rs 1,400 crore now to Rs 3,600 crore over the next three years,” Rajesh Sud, chief executive officer, Max New York Life Insurance, said.
While most of financial services sectors like investment banking and broking business are impacted by the slowdown, the insurance industry too saw a dip in growth.
For the six month period ending September 2008, the private sector insurance industry grew by 40 per cent against last year’s growth of 65 per cent. “This is on account of the overall drop in the savings rate because of weak sentiments and it is only natural for it to impact the insurance industry,” said Sud.