Financial Daily from THE HINDU group of publications
Wednesday, Apr 12, 2006
Financial Daily from THE HINDU group of publications Wednesday, Apr 12, 2006 |
|
|
|
|
|
|
|
Money & Banking
-
Life Insurance Insurance cos bullish on unit-linked plans Nilanjan Dey
Prime factors BUOYANT STOCK markets AGGRESSIVE MARKETING strategies DECENT TRACK record of earlier products
Kolkata , April 11 Insurance companies are reporting a marked increase in the average ticket size in the context of unit-linked insurance products. Bullish market conditions and aggressive marketing strategies followed by insurers have not only ensured higher sales but have also prompted investors to put in bigger amounts in ULIPs. Insurance executives say it has become relatively easier for them these days to convince customers to invest large sums in unitised plans. This, they add, is a result of several factors. One, the stock market has advanced rapidly, a situation that has enabled ULIPs to record major gains. Two, some of the ULIPs launched earlier have notched up a decent track record by this time.
Increase in NAVs
With the increase in NAVs becoming more discernable, insurers are now equipped with a set of concrete examples. These are now being laid out for the benefit of new customers. Mr Sam Ghosh, CEO of Bajaj Allianz Life Insurance, feels unit-linked plans have grown in stature largely because of the equity market's rapid progress. "This has come as a big facilitator. Clients are committing more because they know how ULIPs have leveraged this growth," he said.
More products
Developments such as this will help spawn more ULIPs in the days to come, insurance outfits point out. Mr Vivek Khanna, Director - Marketing, Aviva Life Insurance, is of the view that ULIPs will start finding greater acceptance among new customer segments, including those that do not dwell in urban India. Aviva, for which the average ticket size is now Rs 35,000 or so, feels tie-ups with banks will help the case for ULIPs.
Rural markets
"We have started to introduce ULIPs in the rural markets as well. Banks, which already are a major distribution channel, will ensure that these products reach wider sections," he mentioned. For Aviva, bancassurance currently accounts for roughly 65 per cent of the sales.
New norms
Insurers also indicate that the current year (2006-07) will be extremely significant for ULIPs, the regulatory body's new norms governing these products notwithstanding. Insurance companies are now expected to announce their plans on this front, keeping in view IRDA's guidelines that will soon come into effect. They also feel discerning customers will begin to track ULIPs' portfolios more closely in future.
More Stories on : Life Insurance | Stock Markets
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|