Page 17 - Insurance Times Janaury 2021

surers came at Rs. 19,159 crore is one of the highest in the industry. A The app records the customer's steps
against Rs. 26,221 crore in the same rider is an add-on cover to a life and counts them to figure out how
period last year, recording a fall of insurance policy, paying a defined many healthy weeks a customer has
27%. The industry had recorded a 32% benefit in case of critical illness or accumulated.
growth in NBP in the month of disability. It can be attached to any of
A healthy week is calculated as a total
October. Max Life's 11 savings-oriented or pure
of 50,000 steps per week, with only a
protection plans.
The data showed that private life maximum of 15,000 steps considered
insurers reported a 5% decline in Along with the rider, the insurer, per day. A policyholder can claim a
overall new business premium. HDFC launched Max Fit, a wellness maximum discount of 10% on renewal
Life, however, recorded a 10.7% fall in programme offering discounts on premium if he or she accumulates
this category. Even so, the life insurer's renewal premium on maintaining a more than 36 such healthy weeks.
growth metrics in retail business has healthier lifestyle. Some of the critical The wellness benefit will not be
been stellar. Its retail business showed illnesses that the rider covers are available when availing of the total
a year-on-year growth of 20% on angioplasty, open heart replacement
annualised premium equivalent (APE) and partial disability variant, and will
or repair of heart valves, permanent be only available for the first five policy
basis, according to Jefferies India Pvt
paralysis of limbs and Alzheimer's years.
Ltd. This compares with a 33% decline
disease.
for the industry as a whole and a 54% The rider will get terminated upon the
decline for government-owned largest "We have tried to come up with a death of the insured or on payment of
life insurer Life Insurance Corporation comprehensive plan, focusing on 100% rider sum assured. The sum
(LIC). perhaps the widest range in the assured payout may differ based on the
industry possible in the case of critical variant of the rider and the severity of
The largest private life insurer, SBI Life
Insurance Company saw a decline of illnesses. The rider also covers total and the conditions.
6% in its retail APE, the brokerage permanent disability, which is not
added. "HDFC Life has likely there in many products," said Prashant IndiaFirst Life expects
maintained a strong focus on non- Tripathy, Managing Director and CEO, growth in business this
linked savings (both par and annuities), Max Life.
while growth in retail and credit- The rider comes in five options and the year
protect has also helped," analysts at number of critical illnesses covered IndiaFirst Life Insurance Company Ltd
Jefferies wrote in a note. varies from 22 to 64 depending on the is expecting a flat or a marginal growth
in business this year as compared to
Analysts expect growth numbers to variant. The premium pricing will also
last year.
improve in the fourth quarter of FY21 depend on the variant and the age of
for the industry, again due to a base the policyholder. According to RM Visakha, MD & CEO,
effect. Recall that in March, life the company had registered 25 per
Max Fit app, which will be exclusive
insurers had reported a sharp cent growth in business in FY20 on a
with the rider, is the company's first
contraction because of the lockdown in year-on-year basis because of a
the last week of the month. HDFC Life product in the health and wellness number of digital initiatives
space.
is expected to shine among peers undertaken during the course of the
again. "Health and immunity as a space is year.
getting more and more relevant, and
While the life insurer had witnessed a
Max Life launches new what we are trying to do is to cover 40 per cent de-growth in business
that market by providing access to this
plan covering 64 critical during the first quarter of this fiscal in
app, which links one's health by the wake of the pandemic, however,
diseases creating incentives to maintain a in Q2 it had a marginal growth of
The latest critical illness and disability healthy lifestyle, which a customer can about one per cent. So, the total
rider from Max Life Insurance Co. Ltd come on this platform and do a health degrowth has come down to around 14
covers up to 64 critical illnesses, which assessment," said Tripathy. per cent for the first half of this fiscal.

The Insurance Times, January 2021 17