For Shriram Life Insurance, focus is aam aadmi
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