Shriram Life Insurance Company (SLIC), a private life insurer, has been empanelled as an Annuity Service Provider (ASP) by the Pension Fund Regulatory Development Authority (PFRDA).
The empanelment will help the insurer manage the annuity component of the maturity proceeds under the National Pension System (NPS).
Immediate Annuity Plus
The PFRDA’s certification will help SLIC garner more NPS subscribers under its annuity plan. Immediate Annuity Plus, which is SLIC’s annuity plan, has flexible options for NPS subscribers that offers retirees to continue their lives in the same financial conditions as they did before.
Commenting on the PFRDA nod, Casparus Kromhout, MD & CEO, Shriram Life Insurance Company said, “Shriram Life has a well-priced immediate annuity product and a robust fund management framework. With these, we are gearing up to make the best use of this new opportunity. This also provides us with another avenue to provide holistic insurance solutions for our customers.”
SLIC’s empanelment as ASP will help it mobilise 40 per cent of the NPS maturity amount which will be open to investment in annuity schemes.
ASPs will be responsible for managing the funds (allocated for buying annuity) and payment of the pension after a subscriber attains the age of 60.
The annuity premium mobilisation in India is above ₹25,000 crore per year. As NPS subscriptions mature and subscribers retire, this opportunity will expand further. This will also enable customers to choose from an array of insurance providers who provide rewarding annuity plans according to their needs and lifestyle.