Mr. Anup Rau, Chief Executive Officer at Reliance Life, revealed company’s expansion plan. He said that 80% of the company’s total business comes from traditional products whereas only 20% business comes from unit linked products and that company will focus on traditional products and agents productivity to increase insurance penetration. He further disclosed the plan of expansion in Tier II and Tier III towns and cities and have also re-aligned its product basked based on the amount of volume generated, feedback from the distributors and demand from the customers.
He further said that, the above trend is expected to continue for some more time and that new regulations floated by market regulator Insurance Regulatory and Development Authority, which is applicable from 01st January 2014 onwards, will make traditional products more visible and customer friendly due to larger life cover and higher flexibility.
This new guidelines have been broken down into 3 broad categories, viz:
Traditional insurance plan,
Variable insurance plan, and
Unit linked plans.
Further, these guidelines have brought down the commission of agents on short term policies and that the commission amount is linked to the premium paying period for all products.
Commenting on the new guidelines issued, Mr. Rau said that the new guidelines will serve the ultimate and long term purpose of life insurance and long term goals. It will also promote need based selling and higher life insurance cover and give higher guaranteed returns, improved disclosures and provide simple and customer friendly insurance plan.
