The company has already grown 24 per cent in the first quarter so far, primarily driven by protection and guaranteed income plans, which have gained good traction since the pandemic breakout, says chief executive and managing director Kamlesh Rao.
He said that investors are seeking more guaranteed returns at a time when interest rates are steadily falling for quite some time.
Such a drastic change is spawned by the unprecedented uncertainties on both the health as well economic fronts hitting all at the same time, Rao said.
"Since the beginning of the new fiscal that began with the nationwide lockdown, we''ve seen pure life products plunging 40 per cent in April and 30 per cent in May. But other products saved the day for us led by protection and guaranteed plans along with group doing well, helping us clip past 24 per cent," Rao told PTI.
In the same period last fiscal, the incremental growth was 14 per cent, while despite the odds, the company clocked 24 per cent incremental growth, he said, adding group insurance policies were another growth driver which was mostly through digital routes.
On overall digital sales, Rao said while online sales constitute only 4 per cent for the industry, Birla Sun Life''s is higher than that, Rao said, adding online protection plan sales jumped 50 per cent.
"Protection plans constituted 7-8 per cent of our total business in FY20, which has now grown to 12 per cent, growing at 50 per cent year on year, while guarantee plans ended FY20 with 32 per cent and has gone onto hit 42 per cent of the total business now, clipping at 32 per cent in the quarter," Rao said.
To meet the rising demand, last week it had launched a new child protection plan which offers a guaranteed return. The new future assured plan is a non-linked non-participating life cover enabling a parent to plan for her child''s education and marriage.
Since beginning operations in 2001, Aditya Birla Sun Life had an AUM of Rs 41,126.1 crore as of FY20 with a gross premium income of Rs 8,010 crore which clipped at 7 per cent.
Of this, the first year premium of individual business stood at Rs 1,803.6 crore, making it the seventh largest with over 1.7 million active customers.
Rao said in FY2020 the company had a claim settlement of 97.5 per cent and the solvency ratio stood at 1.80 times against the regulatory mandate of 1.50 times.
He said the company so far had only 5-6 new coronavirus claim settlement.
On the impact of the lockdown disruptions on policy renewals, Rao said it had slipped by 20 per cent in April but had returned to normalcy in May as it could facilitate online payments. PTI BEN MR MR
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI