Shriram Life Insurance is expecting to grow its business by 30 per cent in FY23.  This was revealed by Casparus J H Kromhout, MD & CEO, Shriram Life Insurance Company who said that the life insurance sector is witnessing an increased interest and uptake for term life insurance. 

The industry’s annual premium equivalent in April this year grew by 46 per cent for individual policies and total new business premium grew by 27 per cent, he said. Shriram Life Insurance saw a growth of 30 per cent and 54 per cent respectively, he added.

Premium growth

Sharing Shriram Life Insurance’s FY22 performance, he said, gross premium stood at ₹2,343 crore (a growth of 13 per cent over FY21). It had settled 53,800 claims during the previous fiscal aggregating ₹549 crore with a claim settlement ratio of 95.8 per cent. Its repudiation rate was a low 2.7 per cent. The total asset under management stood at ₹7,683 crore as of FY22. Claims last fiscal were double that of FY21 (due to the delta variant which contributed to sharp increase in mortality).

Kromhout explained that Shriram Life, in line with the group’s philosophy, served the unserved. Its target customers were small business owners and farmers who earned an annual income of ₹2-5 lakh. Almost 40 per cent of its 9 lakh customers were from rural India.

Shriram Life Early Cash Plan

The company, on Wednesday, launched a new product - Shriram Life Early Cash Plan which offers minimum annual sum assured of 3.5 per cent payable throughout the policy term. The new offering, Kromhout said, also solves the biggest dilemma customers typically have - saving for the future or getting an income to take care of various routine expenses. The plan gives two choices to the customers - an early cash option (annual cash bonus) or super growth option (annual cash bonus is accumulated at compounding rates and provides a lump sum amount at maturity). This non-linked participating plan starts with a minimum premium of ₹15,035 and a minimum sum assured of ₹1.50 lakh.