Page 13 - Insurance Times March 2019

Bharti AXA Life Insurance to crack down on mis-selling Private Life insurers' pre-
Bharti AXA Life Insurance has launched an awareness drive to alert customers mium collections up 10
who fall victims to pesky telephone calls and misselling
in the country. The objective is to make them aware percent in Jan19
of fake insurance offers and unreasonably high returns Individual annual premium equiva-
by fraudsters. The company is among the few life in- lent (APE)
surers to have lodged complaints with the police in growth for life
many parts of the country after receiving information insurance com-
about fraudulent cases. panies in private
"Mis-selling and spurious calling have become a sig- sector was at
10% in January 2019 translating into
nificant problem in the domestic insurance industry.
year-to-date (YTD) growth of 11%.
As a responsible insurance company, we have a zero-tolerance policy towards
mis-selling or any illegitimate inducements. Our sales teams help customers take ICICI Prudential Life witnessed sharp
an informed decision on the back of full product and services disclosures," said rebound with 9% year-on-year (y-o-
Vikas Seth, Managing Director and Chief Executive Officer, Bharti AXA Life In- y) growth after reporting decline
surance. The company is organising customer care camps and programmes over the past three months. On the
across all its branches in the country at regular intervals for sensitising buyers other hand, SBI Life was flat as com-
against misleading offers and gains. pared to about 17% growth over the
past three months.
"We are making policyholders and customers alert and aware through our public
awareness programmes, and also informing them about the modus operandi ICICI Prudential Life saw strong im-
and modus vivendi of perpetrators involved and spurious callers, who lure provement in January 2019, record-
people through misleading information and bogus offers. We are also register- ing 9% y-o-y increase in individual
ing complaints with the police wherever it is required and seeking their assis- APE post sharp decline in the past
tance to act against these offenders," said Seth. few months. Management had
guided an improvement in volumes
Bharti AXA Life has set up a pre-issuance video verification call system to help
in 4QFY19. The company has worked
customers understand the terms and benefits of the insurance policy and to
on monthly paying policies.
empower them to take an informed decision.
SBI Life's individual APE growth was
Only 21% of urban life insurance holders buy term in- muted at 1% y-o-y in January 2019,
surance: Insurance Survey especially against the backdrop of
24% growth in December 2018. Its
Only one out of five life insurance policyholders have term insurance in urban growth has been volatile; the com-
India despite the product being the cheapest form of pany reported 6-27% growth in pre-
protection, according to India Protection Quotient (IPQ) ceding six months (YTD growth of
survey conducted by Max Life and Kantar IMRB.
14%), much below 30%+ reported
Urban India stands at the Protection Quotient of 35 out during FY2016-18. Max Life revived
of 100, as per the survey. The survey was conducted on growth of individual APE to 35% post
4,566 people across 15 metropolitan and tier one cit- slowing down in the past two
ies in India. months. The company has increased
focus on ULIPs-a likely reason for
Term insurance, despite being the most fundamental and cheapest form of fi-
superior growth of the company.
nancial protection, still lacks a significant uptake in urban India, Max Life In-
surance CEO Prashant Tripathy said while releasing the survey. So, there is an Additional investment in proprietary
channels will further fuel growth.
urgent need for Indians to understand the true value of protecting one's fam-
ily from the uncertainties of life, he added. Birla SL reported 81% growth in in-
dividual APE, continuing its high
"We hope the results of this study, act as a wake-up call for consumers and the
industry at large and help increase financial protection in the country," he said. growth momentum (YTD growth of
While two-thirds of urban India own life insurance, only one-fifth of them own 70%) as it continued to make inroads
term insurance and close to 53 percent are unaware of term insurance and its in HDFC Bank. Tata AIA was up 46%
benefits, he said. translating into YTD growth of 63%.
The Insurance Times, March 2019 13