Mumbai: Against Trends, Birla Sun Life Insurance (BSLI) has decided to reduce pricing in term policies.
When the insurance company is alert to a large proposal, the personal life company is optimistic at the front of the health considering the surge in vaccination.
Speaking to Toi, BSLI MD & CEO Kamlesh Rao said, “Our sense is that consciousness on health rises.
This is the right time to issue a medically borne policy in the range of Rs 50 Lakh to Rs 2 Crore.” He added that the company has been Decided to drop a price of 6-10% as part of a strategy to increase focus on protection.
In FY21, many insurance companies were forced to increase prices on policy of group terms because reinsurance changed alert and covid death produced a large payment.
This encourages many living companies to change carefully in the insurance guarantee of high-value individual terms too.
BSLI bullish on the term insurance despite seeing a surge in life claims during the second wave of pandemic.
“Covid accounts for 15-16% of claims in the previous financial year.
Just as, 40-42% of claims during the first quarter are caused by Covid,” Rao said.
While those who have recovered from Covid are also closed, there will be a short cooling period.
Clean reinsurance, CLAIM Q1FY22 Covid Company amounts to RS 108 Crore.
In addition, the company carries reserves of RS 100 Crore for claims in Q2FY22.
The first year of BSLI’s individual’s premium grew 5% year-on-year in the first quarter behind a 5% growth in the quarter in accordance with the previous year.
According to RAO, the company’s digital transformation has enabled it to grow a business even during the locking months because almost half a proposal is now borne directly by the software.
In the first quarter, the company provides 91% of its individual policies digitally with most of the proposers choosing Autopay, which has helped increase the 13-month persistence with two percentage points to 83%.