The Hindu Business Line : AMP Sanmar beats others in single premium revenue

AMP Sanmar Life Insurance bucked the market trend in September to collect most of the premiums for its individual policies through single premiums, a one-time payment for an insurance policy.

SBI Life was the only other company, out of the 13 who make up the market to generate more revenue through single premiums. However, group insurance policies make up the bulk of SBI Life's business.

AMP Sanmar's single premiums contributed Rs 3.94 crore in September, more than twice the Rs 1.77 crore contribution through recurring premiums. The company's business was driven by its unit-linked plan, the growth driver of the entire life insurance market this year.

Mr B. Natraj, AMP Sanmar's Chief Operating Officer, attributed the trend to the unit-linked policy's design; it doesn't have a lock-in period. "Underwriting requirements up to a sum assured of Rs 25,000 are very easy," he added.

Other than product design, Mr Natraj identified AMP Sanmar's investment in technology as a factor that could drive growth. He said that AMP Sanmar was the first to introduce straight through processing in its branches.

In this system underwriting parameters are already available in software form, which gives branches the power to issue policies immediately if potential customers meet the necessary criteria.

Mr Natraj said the system would allow branches to immediately issue policies in about 60-70 per cent of the cases, thereby, shrink processing time. He added that the system would also allow insurance agents to convert a greater number of expressions of interest into actual policies.