Private insurer IndiaFirst Life Insurance is eyeing 20% jump in new retail premium income to Rs 7 billion in the current financial year.
During 2016-17 and 2017-18, its new business retail premium mop up stood at about Rs 4 billion and Rs 5.75 billion respectively. “We are looking at 20% growth in our new retail premium income during 2018-19,” IndiaFirst Life deputy CEO Rushabh Gandhi told Business Standard here.
Last fiscal, the new age life insurer had issued roughly 185,000 policies compared to 126,000 policies during 2016-17. Currently, its asset under management (AUM) stands at almost Rs 130 billion, he informed.
Meanwhile, the company is also bullish on the micro insurance segment, which he claimed had witnessed good traction in the rural and semi urban pockets, including Uttar Pradesh. Under micro term insurance, the annual premium could be as low as Rs 200 for a cover of about Rs 100,000 to cater the expansive yet underserved bottom of pyramid segment.
Under micro insurance roadmap, IndiaFirst had launched ‘Insurance Khata’ Plan last year, which offered the subscribers flexibility of depositing varied amounts as premium at regular intervals to customise their insurance cover amount depending upon their disposable income.
So far, the company had sold nearly 40,000 Insurance Khata policies pan India with a good showing in UP, which ranks among the top three markets for IndiaFirst, he added.
Gandhi was in town recently to launch its new Guaranteed Monthly Income plan, a non-linked, participating, limited premium product. This plan is designed to enhance savings, offering a combination of income and financial protection to customers.
He said the Plan allowed a customer to choose when (s)he wants to start receiving monthly payouts, after making the necessary premium payments. There is a life cover through the term of the policy, whether the customer is paying premiums, availing the unique gap years or receiving payouts. Further, there is the advantage of annual bonus announced that is payable at maturity.
“The Plan will help customers meet multiple needs as it provides them with a safety net of the guaranteed returns with an upside,” he added.
Gandhi observed since today’s youth was looking at career with a fresh perspective of self employment, there was the need to provide for a secure post retirement life and other exigencies with suitable insurance cover.
IndiaFirst Life Insurance is a joint venture of Bank of Baroda, Andhra Bank and Legal & General, one of UK’s prominent risk and investment firms. It has presence in over 1,000 cities and towns across India through 10,000+ points of sale, including 2,000 in UP alone.
In May 2018, the company had reported 46% year-on-year growth in net profit at about Rs 510 million during FY18 against the corresponding figure of Rs 350 million during 2016-17.