SBI Life Insurance, the second largest private life insurer in the country, has decided to go slow on its group insurance products.
Mr. Atanu Sen, Managing Director and CEO of SBI Life Insurance Company Limited, today addressed to the media during Infocom 2013 that the company has strategically decided to cut down the sale of its Group Insurance Policies. This decision was taken based on the analysis that the group business has more risks associated with it as compared to retail business. He mentioned that the premium collection from the retail business segment witnessed a 33% year-on-year growth.
Adding to the above, he said that till past few years group insurance business contributed around 50% of the total business volume, however now it has gradually come down to about 20% of the total business. Further, the company is looking to introduce new products (both traditional and ULIP) in the market starting next year. These products will be in line with the revised guidelines issued by IRDA, said Mr. Sen.
SBI Life Insurance is a joint venture between State Bank of India holding 74% shares in the company and Cardif, a BNP Paribas Company, holding remaining 26% shares. The company has a paid up capital of Rs. 1,000 crores and has been awarded a rating of AAA/Stable/P1+ rating by global rating agency Standard and Poor.