Shriram Life Insurance plans to grow its business by 30% in FY23. This was revealed by Casparus JH Kromhout, MD and CEO, Shriram Life Insurance Company, who said that the life insurance industry is experiencing increased interest and adoption of term life insurance.
The annual industry premium equivalent in April this year was up 46% for individual policies and total new business premium was up 27%, he said. Shriram Life Insurance recorded growth of 30% and 54% respectively, he added.
Sharing the performance of Shriram Life Insurance for FY22, he said gross premium stood at ₹2,343 crore (a growth of 13% from FY21). It had settled 53,800 claims in the previous financial year totaling ₹549 crore with a claims settlement rate of 95.8%. His repudiation rate was 2.7%. Total assets under management stood at ₹7,683 crore as of FY22. Claims last FY were double those of FY21 (due to delta variant which contributed to high increased mortality).
Kromhout explained that Shriram Life, in line with the group’s philosophy, serves the unserved. Its target customers were small business owners and farmers who earned an annual income of ₹2-5 lakh. Nearly 40% of its 9 lakh customers were from rural India.
Shriram Life Early Cash Plan
The company on Wednesday launched a new product – Shriram Life Early Cash Plan which offers a minimum annual sum insured of 3.5% payable over the life of the policy. The new offering, Kromhout said, also solves the biggest dilemma customers typically have — saving for the future or getting income to take care of various routine expenses. The plan offers clients two choices – an early cash option (annual cash bonus) or a super growth option (annual cash bonus is accrued at compound rates and provides a lump sum at maturity). This untied participation plan starts with a minimum premium of ₹15,035 and a minimum sum insured of ₹1.50 lakh.
May 18, 2022