Principal to launch risk products by October

The Principal Group is all set to launch life insurance products by October this year.

The company, in partnership with Punjab National Bank and Vijaya Bank, has filed an application for the first level of regulatory clearances expected before June-end. Final approvals are expected by August, said Campbell Tupling, chief operating officer, Principal International (Asia) Ltd.

The company plans to market the products as group products and sell them through banks, chambers of commerce, big employers, etc.

"The agency model is very expensive and we feel that our distribution system will help us keep the costs lower and therefore offer lower premiums," Tupling said.

The insurance arm of the business hopes to break even in five to eight years, according to Tupling. "We would add 120 more people to our work force.

The current employee strength is 250," he added.At present, Principal Financial Group runs an asset management company and a financial planning company.

"We have tied up with two major public sector banks. This would help us access the rural customers for our products", Tupling said.