We are constantly growing despite industry stagnation: Shriram Life MD, CEO

Our focus is on families in the lower segment, or those families which have a family income in the ₹5-₹15 lakh range only. This segment needs life insurance the most, said Shriram Life MD, CEO

Shriram Life Insurance, promoted by Chennai-based Shriram Group and Africa’s Sanlam Group, became one of the fastest-growing life insurance companies in the financial year 2024-25 (FY25), with its individual new business annualised premium equivalent (APE) rising 45 per cent to ₹1,289 crore, outpacing the private industry’s 15 per cent growth last financial year. The company’s Managing Director and Chief Executive Officer Casparus J H Kromhout, in a video interview with Shine Jacob, talks about its future growth roadmap, focus on the ₹5lakh–₹15 lakh consumer bracket, and rural strategy. Edited excerpts:

 

In FY25, your total premium rose by 20.2 per cent to ₹4,216 crore, while assets under management (AUM) rose to ₹13,207 crore from ₹11,282 crore in FY24, marking a 17 per cent year-on-year increase. What is your growth outlook? 

We ended the year on a good note and were able to outpace the industry average. Our technology initiatives and customer-related investments are all paying off. We will continue to have good growth momentum. It may not be 40 per cent growth like the last financial year. This year, it may be around 25–30 per cent in terms of new business APE.

 

We have a specific vision for 2030 too. This is to grow the company much more significantly. It is not only about top-line growth, but to ensure that we reach out to a much larger customer base. We are now around ₹1,300 crore in terms of new business APE. This may grow by around 2.5–3x by 2030 to around ₹3,000 crore. Similarly, our target is to ensure that our Gross Written Premium (GWP) will touch around ₹10,000 crore, and our AUM around ₹30,000 crore by that time.

 

Still, your premium size is much below the industry average. Is it an intentional strategy to focus on the lower segment? 

Our focus is on families in the lower segment, or those families which have a family income in the ₹5–₹15 lakh range only. This segment needs life insurance the most, while most companies target a higher segment. We have to provide products that are affordable to this segment. Hence, our premium size is around ₹20,000 versus the industry average of ₹90,000. We have to have products with premiums low enough to make them affordable. We have to travel a lot to reach all these customers, to ensure that the target of Insurance for All by 2047 is achieved. 

 

Can we reach the nook and corner of India? That is our aim. For the industry, around 20per cent of its business is coming from rural areas. For us, it is more than 30 per cent, and we are continuously increasing our rural presence. This is what Insurance for All by 2047 is targeting. We are constantly growing, while the industry is actually stagnating. We are continuously focusing on how to improve our reach. 

 

We don’t mind if the premium size remains low. We are looking to reach those customers in much more efficient ways. That does not mean that we are ignoring highersegments. More than 35 per cent of our retail premium is coming from the higher 

segment as well, while 65 per cent is coming from the ₹15 lakh and below segment. We are continuously trying to increase our reach into rural areas. People living there should not be excluded from life insurance.

 

During the last financial year, the industry penetration declined to 3.7 per cent from 4 per cent. How are you looking at this? 

The industry is not growing at the pace of GDP growth. If you look at the total premium growth, it has not been keeping pace with GDP growth. It means that GDP outpaces how fast the industry can catch up. So, we have a lot of opportunities to innovate and grow the life insurance sector. It is up to the industry to create products and reach out to that market which is constantly growing.

 

The population is growing, the economy is growing. Now it is up to the industry to ensure that we can provide products. The idea of life insurance should expand. It automatically comes into competition with other investment opportunities like mutual 

funds and the like. Awareness of the population is very important.

 

Do you have any listing plans? 

It is for shareholders to decide on the timing of the listing. My focus is on growing the company. We are expecting to cross an AUM of ₹15,000 crore in FY27. That will be a huge milestone for us. We are investing in a market where most people are buying their first life insurance policy from us. We believe that the way India’s GDP is growing, the market will also become prosperous over time.

 

The segment that we are focusing on has different needs, as most of our customers include farmers and small business people. We are continuously working on what kind of products can support them. We understand the segment.

 

What is your take on BIMA Trinity and its impact on the industry? 

It is a good initiative to bring in more opportunities to grow the penetration. Penetration has actually come down. It needs a lot of focus from the government, regulator, private sector, and LIC to work together. BIMA Trinity is a good initiative on how to create more opportunity for growth. The product combination, I think, is very good. It motivates us to create a similar kind of product. These are good initiatives to bring in energy into the system.

 

We have been growing very fast, and this growth is happening in a difficult segment. We are increasing our own capacity to reach out to more customers. Around 95 per cent of our business is now paperless.