Page 13 - Insurance Times April 2023

Pankaj Gupta appointed 61st month improve from 50.2% in
Life Insurers report
December 2021 to 64.8% in December
MD & CEO of Pramerica
muted business growth 2022.
Life Insurance Persistency ratio is an important
in February
Pankaj Gupta has been appointed as indicator of the quality of the sale and
Life insurers reported muted
the MD & CEO of the Pramerica Life future growth of the insurer. It
growth in retail Annual Premium
Insurance. Gupta will succeed Kalpana measures the proportion of customers
Equivalent (APE) for February 2023,
Sampat. paying premiums.
largely due to a decline in retail APE
He will be responsible for driving Using the model, the firm claims it has
growth of the state-owned Life
strategic growth led transformation to a better understanding of the future
Insurance Corporation of India (LIC).
bring Pramerica Life amongst the persistency behaviour of new
While the overall retail APE for the leading life Insurance companies in customers and assists sales managers
industry rose 10.5% on a year-on- India. in responding to their queries more
year basis, helped by private effectively. It has also allowed them to
Gupta joins Pramerica Life Insurance
players expanding at 18%, LIC's identify distinct customer segments
from HDFC Life, where he was the
retail APE declined by 3% over the Group Head - Distribution Strategy & and offer a more personalised
same period. Alliances and was part of HDFC Life's experience to existing customers by
factoring in their preferences, profiles,
top Leadership team.
The low growth resulted from a
and expectations.
likely pre-booking of high-ticket
non-ULIP policies in February and ICICI Prudential Life "We have been leveraging data
science and technology to ensure our
March 2023 to avoid the impact of
Insurance taps ML to customers are on course to achieve
taxation change proposed in the
predict customer behaviour their long-term financial goals. This is
FY24 union budget, according to an
in line with our vision of building an
Emkay report. Indian insurance provider ICICI
enduring institution that serves the
Prudential Life Insurance is using
The life insurance industry uses protection and long-term saving needs
machine learning (ML) models to
retail APE as a metric to measure of customers with sensitivity," Dhiren
predict the future persistency
new business sales by taking the Salian, Deputy Chief Financial Officer,
behaviour of customers who are likely
total new business premium (sum ICICI Prudential Life Insurance, said in
to pay their renewal premium on time.
of regular premium and 10% of a statement.
The insurance firm claims that the ML
single premium) during a particular
model has led to higher premium
period and annualizing it by LIC's net profit surges to
collection and profitability.
multiplying it with the premium
Since the deployment last year, the Rs. 6,334 crore in Q3
payment term.
firm has seen persistency ratio in the Life Insurance Corporation reported a
12 April 2023 The Insurance Times