Small and medium enterprises (SMEs) have become the preferred segment for general insurers after saturation in covering other corporate businesses, despite the former's small ticket-size and unorganised nature of business. Over 60 per cent of the business underwritten in the corporate side is coming from the SME segment.
Insurers see huge potential and says the segment is highly untapped. Chances of big claims are low. Risks are mainly retained by insurers, as the sum assured falls in the range of Rs 1-5 crore. They do see challenge coming from high cost of distribution.