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SBI Life Insurance is set to revise its premium growth target downwards this year.
The insurer had initially set a target of 20-25 per cent growth in premium earnings in 2012-13.
Single premium policies
According to Atanu Sen, Managing Director and Chief Executive Officer, SBI Life, it might be difficult to meet the premium growth target as there has been a slide in the sales of single premium policies.
“Sale of single premium policies has come down sharply. However, there has been a growth in the number of policies sold under the regular premium plans,” Sen told newspersons on the sidelines of a banking colloquium organised by the Confederation of Indian Industry here on Friday.
The insurer expects new business to come primarily from term plans and credit life protection plans (life insurance provided along with a loan) this year.
Corrective measures
Talking about the recent regulatory changes in the insurance industry and its impact on the growth in the industry, Sen said, “There have been a number of corrective measures in the insurance industry in the last 2-3 years primarily to prevent mis-selling of products.
These measures led to a dip in the growth in the topline figures of the sector as a whole. However, now the industry is on a consolidation phase and it will start growing from here on.”
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