The Hindu Business Line : Kotak Life to focus more on ULIPs

According to Mr Subhasis Ghosh, Vice-President, East & South, ULIPs currently contribute 40-50 per cent of the company's products. Adding to its suite of unit-linked plans, the company recently launched its fifth ULIP - Kotak Retirement Income Plan.

Mr Ghosh told Business Line that ULIPs provide certain distinct advantages over non-unit linked plans such as opportunity for higher returns and wide fund options to choose from depending on policyholder's risk profile that include equity, debt, gilt and money market. The ULIPs also offer flexibility to the policyholders to enter, exit or withdraw at their convenience.

The half yearly growth of the ULIPs during the current fiscal has been 90 per cent over the previous fiscal, he said. Stating that `Kotak Safe Investment Plan' (KSIP) has been the star product of the company among its ULIPs, Mr Ghosh said the product was recognised by both the market and consumers as a genuine innovation as it offered upside of stock market while protecting from the downside.

Keeping in view the market response and consumers' demands, Kotak Life has launched an enhanced version, KSIP-II, to benefit the customer substantially with greater flexibility and liquidity.

Responding to the new norms of the Insurance Regulatory and Development Authority on having in-house fund management teams for ULIPs, Mr Ghosh said Kotak Life has been having in-house fund management team from the inception to effectively handle the ULIPs.

"We are eyeing a growth of over 100 per cent with Rs 250 crore as the first year premium income in the current fiscal. We have set target of reaching about four per cent overall market share or 10 per cent of the private sector by 2006-07. We expect our ULIPs portfolio to drive the growth," he added.

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