The insurer, which is a joint venture between Bank of Baroda, Andhra Bank and UK`s Legal & General group, has a large chunk of business coming in from the bank channels of distribution.
Private life insurer IndiaFirst Life Insurance is hoping to double its profits in FY17 from Rs 7.72 crore seen in FY16. Talking to Moneycontrol, RM Vishakha, MD & CEO, said rural and digitised mass market will be a big focus for the company.
The insurer, which is a joint venture between Bank of Baroda, Andhra Bank and UK's Legal & General group, has a large chunk of business coming in from the bank channels of distribution.
Vishakha said that close to 90 percent of Andhra Bank branches have sold atleast one policy during the year and out of that pie almost 60 percent of branches have sold a product every alternate month. Similarly, she said that Bank of Baroda has 70 percent of its branches selling a policy at some point in a year.
The insurance regulator has allowed banks to tie up with up to nine insurers, three each in life, non-life and standalone health. However, Vishakha said that opening up the bank branch network to multiple companies should not be made mandatory.
“There is a high level of involvement that goes from the bank end to sell policies of one company. The responsibility on them for policy sales is also high,” she said.
With respect to premium growth, Vishakha said that the annualised premium equivalent (APE) saw positive growth. “In the individual segment, we saw a 90 percent growth in premium on a year-on-year basis,” she said.
In FY18, the insurer is looking to grow its direct channels. “We have launched our new website in January and in FY18 we are looking at getting into internet marketing in a big way,” she explained.
Persistency or the number of policies getting renewed has also seen an improvement. “We have almost reached 75 percent persistency for the 13th month. Some of the other PSU promoted insurance branches are languishing at 60 percent; we are much better than them,” said Vishakha.The Great Diwali Discount!
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