{"id":43878,"date":"2023-12-02T15:39:00","date_gmt":"2023-12-02T15:39:00","guid":{"rendered":"https:\/\/cabanesetcompagnie.com\/?p=43878"},"modified":"2023-12-02T15:39:00","modified_gmt":"2023-12-02T15:39:00","slug":"its-a-tough-job-to-sell-life-insurance-to-people","status":"publish","type":"post","link":"https:\/\/cabanesetcompagnie.com\/business\/its-a-tough-job-to-sell-life-insurance-to-people\/","title":{"rendered":"‘It’s a tough job to sell life insurance to people’"},"content":{"rendered":"

‘We are expected to grow at above 28 per cent this year, higher than the industry.’<\/strong><\/p>\n

<\/p>\n

Shriram Life Insurance Company, a joint venture between Shriram Group and South Africa-based Sanlam Ltd, is betting big on the rural market, from where it gets about 45 per cent of its business.<\/p>\n

Casparus J H Kromhout<\/strong>, managing director and chief executive officer, talks to Shine Jacob<\/strong>\/Business Standard<\/em> about its growth road map, rural market penetration, and expansion plans in the lower-income population at the company’s office in Chennai.<\/p>\n

Overall life insurance penetration in India is hardly 3-4 per cent now. How do you look at this?<\/strong><\/p>\n

There is a lot of focus on it now, with the regulator in the past few years putting emphasis on it.<\/p>\n

We are seeing some movement, but penetration is still quite low, and the opportunity is big.<\/p>\n

India is a country of countries in many ways, and each of the states is extremely large.<\/p>\n

Even though it has grown, there is still a lot that can be done because India is below the world average.<\/p>\n

In South Africa, from where I come, life insurance penetration is closer to 12 per cent.<\/p>\n

The focus in India is still on people in the higher-income segment.<\/p>\n

There is a bit more awareness now, but life insurance is still seen mostly as a tax-saving alternative.<\/p>\n

If you look at penetration in the lower-income segment, it is significantly less.<\/p>\n

As an industry, we have a big job to reach out to more families and get them covered.<\/p>\n

Whether it is finance or insurance, Shriram focuses on communities that typically do not get covered by the mainstream.<\/p>\n

According to reports, Private life-insurance firms are expected to grow 9-12 per cent in FY24. How do you see your growth?<\/strong><\/p>\n

Profits are very good, and we are investing very significantly in capacity for business development.<\/p>\n

Life insurance is a face-to-face activity, and the tough job for anybody is to sell it to people.<\/p>\n

We are expected to grow at above 28 per cent this year, higher than the industry.<\/p>\n

Around 45 per cent of our business comes from rural India.<\/p>\n

The focus for us is retail business, and that’s where we are seeing growth. Last year, we had 24 per cent growth.<\/p>\n

What is the impact of the new norms on taxing the total returns on high-value life insurance policies on your company?<\/strong><\/p>\n

We are in a segment where we cover more families with lower premiums. We are in a segment where only a few customers are able to spend more than Rs 5 lakh on insurance premiums.<\/p>\n

We are trying to cover the aam aadmi<\/em>, and the large segments of society.<\/p>\n

Percentage-wise, such high-end customers will be insignificant for us and will be in decimals, if at all.<\/p>\n

The average annual premium for the industry is Rs 60,000-70,000, whereas for us it is around Rs 20,000.<\/p>\n

Now, we are number seven in terms of the number of policies that we serve, but the premium size is much lower.<\/p>\n

So, for us, there is no impact of the base effect following the change in norms. We are protected as a company.<\/p>\n

You have a 45 per cent share in the rural market, one of the highest in the industry. What will be your strategy?<\/strong><\/p>\n

The rural population in India is 65-70 per cent of the total. It is much more difficult to reach rural customers. We are committed to this market.<\/p>\n

With Shriram Group, we have a large customer base in the rural market, where cross-selling of the life insurance business can happen.<\/p>\n

Their life is not protected for additional money for the families, if something happens.<\/p>\n

We have reached out to them. Our strategy will be to continuously increase the access that we have through Shriram Group.<\/p>\n

We create business models that are unique and technology-driven in rural areas — feet-on-street models.<\/p>\n

Where do you like to see the rural market after three years?<\/strong><\/p>\n

I want the share of the rural market to cross 50 per cent. We will be growing quite fast.<\/p>\n

We are seeing over 20 per cent growth year-on-year as a plan towards 2030.<\/p>\n

At present, closer to 50 per cent claims are coming from the rural market.<\/p>\n

Our claim settlement ratio was around 97.4 per cent in FY23, up from 95 per cent in FY21.<\/p>\n

This financial year we are targeting around 98 per cent. We are on a par with the top players and are focusing on a sector in which risk and mortality are higher.<\/p>\n

Feature Presentation: Aslam Hunani\/Rediff.com<\/em><\/strong><\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

‘We are expected to grow at above 28 per cent this year, higher than the industry.’ Shriram Life Insurance Company, a joint venture between Shriram Group and South Africa-based Sanlam Ltd, is betting big on the rural market, from where it gets about 45 per cent of its business. Casparus J H Kromhout, managing director and chief executive officer, talks […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"yoast_head":"\n'It's a tough job to sell life insurance to people' - cabanesetcompagnie<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cabanesetcompagnie.com\/business\/its-a-tough-job-to-sell-life-insurance-to-people\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"'It's a tough job to sell life insurance to people' - cabanesetcompagnie\" \/>\n<meta property=\"og:description\" content=\"‘We are expected to grow at above 28 per cent this year, higher than the industry.’ Shriram Life Insurance Company, a joint venture between Shriram Group and South Africa-based Sanlam Ltd, is betting big on the rural market, from where it gets about 45 per cent of its business. 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