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Aditya Birla Sun Life Insurance saw 10% growth in individual business in May despite industry slowdown, says CEO

The company has launched a child plan which is a non-linked non-participating life insurance plan.

June 17, 2020 / 07:29 PM IST

Private life insurer Aditya Birla Sun Life Insurance saw a 10 percent year-on-year (YoY) growth in individual premiums in May 2020 despite the coronavirus lockdown slowing down the industry.

In an interaction with Moneycontrol, Kamlesh Rao, MD and CEO, Aditya Birla Sun Life Insurance, said the company wrote Rs 100 crore of individual business in May 2020 even as the industry de-grew by 30 percent.

The coronavirus outbreak and the subsequent lockdown from March 25 led to a sharp slump in new policy sales for life insurers. This is because field agents were no longer able to visit customer homes to sell products while bank branches had a drop in visitor numbers.

Banks and agents are the two largest distribution channels for the insurance industry, especially for life insurers.

Kamlesh_Rao_DSC_9791_low_res Kamlesh Rao, MD & CEO, Aditya Birla Sun Life Insurance

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Rao explained that guaranteed products would continue to see a demand. On May 16, Aditya Birla Sun Life launched a child plan which is a non-linked non-participating life insurance plan.

“The Aditya Birla Sun Life Insurance Child’s Future Assured Plan enables people to plan for the child’s two significant milestones, education and marriage by providing the required cash flow to help meet these goals. It also has in-built waiver of premium element that ensures that the policy continues in case anything unfortunate happens to the life insured,” he added.

Here, an insured can choose periodic pay-outs of 3, 6, or 9 years to plan for a child’s education and a lump-sum at the desired milestone, to plan for marriage.

As far as the company is concerned, Rao said that one-third of business comes from unit-linked insurance plans (Ulips) and rest is traditional.

“We have been able to manage the same mix even in April and May. Ulips are also not out of favour since it is not a short-term product. Minimum term is five years and usually returns over a five-year horizon are positive,” he added.
M Saraswathy
first published: Jun 17, 2020 06:25 pm