Page 15 - Insurance Times October 2019

SBI to sell 4.5% stake in Max Life Insurance launches ‘You Are The Difference’
SBI Life Insurance campaign

The State Bank of India (SBI) has re- Max Life Insurance has launched a new campaign that introduces the belief
cen tly ‘You Are the Difference’ in the lives of individuals. This
stated that new brand thought is in line with Max Life’s focus on
it will in- encouraging consumers to realize and embrace their
crease up ‘real life value’ when buying life insurance.
to Rs 3,465 Culturally, the concept of ‘self’ is often subsumed by a
crore by selling up to 4.5 percent collective unit, be it a family or a team. As part of tra-
stake in its insurance arm SBI Life ditional Indian ethos, we tend to undermine the indi-
Insurance Company. However, this is vidual self and give precedence to collective self. This
subject to requisite approvals. habit of undervaluing the ‘self’ also manifests itself in the sum assured we opt

"The Executive Committee of Cen- for while buying life insurance and end up buying sub-optimal sum assured
tral Board (ECCB) of State Bank of which may not be sufficient to support dreams and aspirations of your loved
India (SBI) in its meeting held today ones in your absence.
i.e., September 11,2019 has ac- Aalok Bhan, Director & Chief Marketing Officer, Max Life, said, “People tend
corded approval for divestment of to make the mistake of assessing their real value basis only their current fi-
3,50,00,000 + 1,00,00,000 equity nancial status, thus often ignoring their future financial potential and under-
shares constituting 3.5% with an playing the value of ‘self’. Through real life events, our campaign will bring alive
oversubscription up to 1% of its the value consumers bring to their families. We are confident that these situ-
stake in SBI Life," the lender said in ations will resonate with our target audience and will nudge them to relook at
a filing to the Bombay Stock Ex- the value of ‘Self’.
change.
Max Life has also created an easy to use tool to calculate ‘Real Value’ which
The stake sell will consist of a base takes into consideration current and potential financial contribution assump-
issue of selling 3.5 crore equity tions as well as the value of aspirations of the loved ones. We believe that if
shares (representing 3.5 per cent of consumers understand their ‘Real Value’, they will automatically work towards
the total issued and paid-up equity protecting it, to ensure that their family does not have to live a life of com-
share capital of SBI Life) with an promise in any circumstances.”
option to additionally sell up to 1 The integrated campaign iterates that as an individual, it is ‘You’, who brings a
crore (or 1 per cent) paid up equity difference to the lives of your loved ones, both financially and emotionally.
share of SBI Life.
Hence, it is the responsibility of every bread earner not to undervalue ‘Self’,
The bank is offloading stake to because, for your family 'You Are The Difference'.
achieve the minimum public
shareholding of 25 per cent (part of Life insurers approach IRDAI approval to sell indemnity-
bank's share of MPS) through offer,
as per the regulatory prescription, based health insurance
SBI said. Life insurance companies have recently approached the IRDAI in order to get
"The seller (SBI) proposes to sell up permission to begin the selling of indemnity-based health insurance products
to 3.5 crore equity shares, in aggre- once again. “Given the low penetration of health insurance in the country, there
gate representing 3.5 per cent of the is enough scope and also requirement for sale of more of these products. Life
total issued and paid-up equity share insurance companies already sell protection for critical diseases such as can-
capital of the company (SBI Life Insur- cer cover, and also have a huge distribution network across the country, which
ance) on September 12, 2019 for can be used to sell health insurance,” said sources close to the development.
non-retail investors and on Septem- In the year 2016, the IRDAI had issued new health insurance regulations, under
ber 13, 2019 for retail investors and which it had barred life insurers from selling indemnity-based health insurance
for non-retail investors who choose products. It had allowed only general insurers and health insurers to offer indi-
to carry forward their un-allotted vidual health products with a minimum tenure of one year and maximum of three
bids," SBI said in a regulatory filing. years, provided the premium remains unchanged for the tenure.

The Insurance Times, October 2019 15