Aditya Birla Sun Life Insurance is doubling the protection mix (the share of conservation plans in the total business) to 15 percent from about 7 percent currently in two years. With this, the insurer wants to double the millennial’s share in its customer base.
Aditya Birla Sun Life Insurance
Kamlesh Rao, MD, and CEO, Aditya Birla Sun Life Insurance stated that the company is working to increase the share of the security mix in their business through a mix of efforts to buy policies, offer policies to young people Has been Select options to choose from and to expand the digital sales process.
The Aditya Birla Sun Life Insurance IRDAI figures show that the insurer has seen a 26.3 percent year-on-year increase in its new premium for the period from 1 April to 31 January (FY21), which stood at Rs 3,490.80 crore.
“We have launched a hyper-personal term plan, ABSLI DigiShield Plan to meet the unique security needs of customers. A scheme will have a variety of needs to meet the needs of customers including safety, critical illness, and additional benefits, ”he said.
The scheme is one of the first such policies in the Indian market to provide an option to reduce the amount assured at pre-defined retirement age, allowing customers to align their cover according to their outstanding liabilities and standard of living.
So, a customer can reduce the sum assured by 25 percent or 50 percent at the time of retirement. Rao said this can be helpful as most customers have taken care of their financial responsibilities such as debt payments till retirement age and have also saved enough for the future.
Protection plans are term insurance plans that payout to the family/nominee if the policyholder dies during the policy term.
Getting small customers
Rao reported that most of the occupation (60–65 percent) comes from the age group of 35–45 years. Another 15-20 percent comes from the age group of over 45 years while 15 percent comes from the age group of 28-35 years.
“We want to make sure that the product suite is such that one should buy the product even for millennia. We are also ensuring that the digital journey of customers is quick and that it will be especially liked by younger customers. We want to double our co-led business in two years.
Instead of focusing on the traditional sales method, Rao said that the company is not employing data analytics tools to present the product to its customers.
“We also assure a pre-approved amount for each customer based on data analytics. This method of selling initially accounted for 2-3 percent of our business in April / May 2020. But by January 2021, about 22 percent of the business comes with the program. This is an efficient way to sell because we are already doing a needs-analysis and offering a suitable product, ”he said.
According to him, about six out of 10 customers are buying recommended products through this method. Going forward, he said the company would also implement a project to issue a new policy within 24 hours of submitting the documents.