For Shri­ram Life In­sur­ance, fo­cus is aam aadmi

Banking Frontiers - - Contents -

Manoj Jain, MD at Shri­ram Life In­sur­ance Co, ex­plains the com­pany’s progress based on prod­ucts, in­no­va­tion, tech­nol­ogy and part­ner­ships

Me­hul Dani: Can you briefly de­scribe the busi­ness growth of Shri­ram Life In­sur­ance Co?

Manoj Jain: The to­tal new busi­ness premium (NBP) re­ceived by Shri­ram Life till 31 De­cem­ber 2017 has grown by 9% (`312 crore), in­di­vid­ual busi­ness up by 13% and group NBP APE by 10%. The av­er­age premium per pol­icy is around `20,000, which is lower than the av­er­age premium of LIC of In­dia and the pri­vate sec­tor in­sur­ance in­dus­try. This reaf­firms our ap­proach and tar­get cus­tomer seg­ment. Our poli­cies have in­creased by 1.60 lakh (18%) against the in­dus­try fig­ures of 1.75 crore (up by 11%).

Shri­ram group con­tin­ues to fo­cus on the aam aadmi seg­ment, which has been the DNA of the group. Since life in­sur­ance is a busi­ness built on the­ory of large num­bers, the group con­tin­ues to fo­cus on the mass mar­ket. This is still largely re­main­ing un­der­served. We are do­ing the dif­fi­cult job of reach­ing out to these mass cus­tomers though many other life in­sur­ers may find these seg­ments less prof­itable or un­prof­itable.

Manoj Jain, MD at Shri­ram Life In­sur­ance Co, ex­plains the com­pany’s progress based on prod­ucts, in­no­va­tion, tech­nol­ogy and part­ner­ships:

How have you brought prod­uct in­no­va­tions in the cur­rent FY?

We will be launch­ing a cus­tom­ized, sim­ple with easy to un­der­stand ben­e­fits, point of sale non-par­tic­i­pat­ing prod­uct soon. We hope this prod­uct will help in reach­ing out to a large num­ber of cus­tomers. We will part­ner with in­sti­tu­tions, which have larger out­lets and train them for point of sale dis­tri­bu­tion of these prod­ucts. We shall be lever­ag­ing on tech­nol­ogy for ac­qui­si­tion of cus­tomers as well for ser­vic­ing them. We launched our Can­cer Care prod­uct for on­line dis­tri­bu­tion. We will be launch­ing pure term plan, Shri­ram Smart Pro­tec­tion Plan, in Q4. This prod­uct is aimed at pro­vid­ing rea­son­able life cover at af­ford­able pre­mi­ums. This prod­uct is aimed at cus­tomers look­ing pure term life in­sur­ance cover in the range of `2 lakh to `14 lakh to cater to the risk cover re­quire­ments of the aam aadmi seg­ment.

How have you raised the busi­ness vol­ume in ru­ral In­dia?

In ru­ral mar­kets, we need to of­fer sim­ple, easy to un­der­stand prod­ucts, with­out any com­pli­ca­tions. A de­fined ben­e­fit prod­uct or a guar­an­teed re­turn prod­uct is ide­ally suited for these mar­kets, which will help in re­duc­ing the op­por­tu­nity for mis-sell­ing. Close to 50% of our poli­cies is­sued are sold in ru­ral In­dia. Our mar­quee prod­uct, As­sured In­come Plan (guar­an­teed re­turn), ac­counts for close to 50% of all our new busi­ness is­suance. More than 60% of our branches cater to the cus­tomers

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.