Friday, August 5, 2011

Reliance Life plans to build up traditional products

Reliance Life Insurance Company, a part of Reliance Capital is looking to enhance its offering for protection-oriented plans, as it plans to launch couple of riders that will give the insured added protection at nominal cost. The company has filed two new riders ‘family income benefit’ and ‘waiver of premium’, for which regulatory approvals are awaited.

The firm is also looking to launch competitive online term insurance plan.

“The regulator has already reiterated its focus on protection by increasing the minimum life cover for Ulip policies. We are taking that further by offering opportunities to increase protection beyond the basic life cover,” said Malay Ghosh, CEO, Reliance Life Insurance during a media interaction.

Reliance Life is further considering the launch of fixed benefit simplified health insurance plan for individuals.

The company has, over the last couple of fiscal years, seen significant reduction in its operating losses and is set for turnaround in current fiscal as it aims at profit of over Rs300 crore. The company, which had reported loss of Rs129 crore in FY11, has been making operating profits every month since the last three quarters.

The firm is targeting regular premium of Rs5,000 crore and new business premium (NBP) of Rs3,500 crore in the current fiscal, with half of it likely to come from traditional plans.

The largest private insurance firm (by number of policies) is open to bancassurance strategy, which would help it to significantly increase its topline.

“Reliance Life has been approached by several banks for tie-up with equity partnership and we are keenly exploring innovative partnership models,” said Ghosh.

The company, which has been in the forefront in reaching out to rural mass market, is also launching rural career agent programme, under which it would induct 6,000 agents during the year. It would also recruit 4,000 sales managers during the fiscal, taking the total sales manager’s strength to 12,000.

The company has seen 31% growth in its assets under management (AUM) during fiscal 2011 to `17,855 crore and islooking at doubling it in the next three years.

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