We will plan for an IPO at right time, right environment: IndiaFirst CEO

Gandhi spoke on the insurer's distribution and product portfolio plans which are expected to drive the premium growth of the company

Rushabh Gandhi who took charge as the MD & CEO of IndiaFirst Life Insurance on July 1 spoke to Aathira Varier on the insurer’s distribution and product portfolio plans which are expected to drive the premium growth of the company. Edited excerpts

After a low double digit growth in FY24. What is your premium growth target for FY25?

Last year, we de-grew by about 19.5 per cent due to multiple reasons. FY25 will be a year of

consolidation and we are expecting to grow the business (top line) in single digits.

What are your plans for the initial public offering (IPO) of the company?

Our IPO has been deferred and we should be able to turn it around within the next 18 months. We need a supportive environment not just from a market point of view but also from an industry point of view. We will plan for an IPO at the right time and in the right environment.

Do you plan to make any changes to your distribution model?

This year we have massive expansion plans on the agency side. Over the next three years, we intend to set up 100 odd branches supported by a dedicated and a full-fledged team. We will set up 30+ branches this year (FY25) itself. We are also focusing on enhancing contributions from reputed brokers and the digital business. In three years’ time, we expect the non-bancassurance channels to contribute to 20 per cent of the business. Currently, non-bancassurance channels contribute to the business in single digits.

After the revised norms on surrender value, what are your plans for product mix?

Nearly 60 per cent of our business comes from non-participatory products. The remaining is equally split between unit linked products and participating products. In the immediate run, SSV specialised surrender value (SSV) might cause a slight stress on the margins. Having said that, there are ways to mitigate the impact. The first one is to change the product mix. The minute one moves away from a dominant non-par portfolio to a more balanced one, a part of the SSV risk is mitigated. Other ways of mitigating the SSV risk are to re-look at the commission constructs; the customer benefits; and the expense efficiencies. All in all, our margins might get impacted a bit because of the new guidelines. However, overall, the impact will be in line with the industry.