Page 14 - The Insurance Times January 2022

Private Life Insurance

News

Max Life Insurance Launches Life premiums to rise in some plans and depending on the
'Max Life Smart Wealth 2022 on spike in reinsur- products the increase has either been
implemented or to be shortly
Income Plan' ance costs implemented," said Vighnesh Shahane,
Max Life Insurance announced the Life insurance premiums are set to CEO, Ageas Federal Life Insurance.
launch of the 'Max Life Smart Wealth increase in 2022 as large reinsurance
Income Plan', a comprehensive Non- companies are likely to raise charges Tata AIA life insurance
Linked Participating Individual Life that are likely to be passed on to bets on 40% growth over
Insurance Savings Plan. This new customers.
product offering from Max Life Higher premiums may mean higher next 3 years
provides customers with a complete profitability for insurers but could also Tata AIA Life Insurance expects a 30-
solution to fulfill the financial needs of impact demand for policies at a time 40 per cent growth in business over the
their family and loved ones. Offering that awareness about insurance is at next three years backed by a strong
additional income options, the plan a peak. push to protection and pension plans,
allows the customers to achieve a ramping up of distribution network and
financially protected future through Expectations are that premiums will with renewed emphasis on branding.
rise between 20% and 40% as
various life cover and income options.
reinsurers will look to cover for According to Naveen Tahilyani, MD
Depending on whether one wants an increased losses due to higher claims. and Chief Executive Officer, Tata AIA
early income or a few years down the Many companies have already applied Life Insurance, pension as a category
line, the Max Life Smart Wealth Plan to the Insurance Regulatory and is currently a small part of their total
offers customers the flexibility to Development Authority of India (IRDAI) portfolio. But the company plans to
choose a plan that matches their seeking permission to hike charges launch new products starting this
requirements. month to tap into the potential growth
while some are negotiating with global
in the segment.
There are three plan options to build reinsurers to minimise the hikes. The
a secondary income stream.The hike in premiums is likely to impact The company will also continue its
accrual of survival benefits ('Cash both online and offline policies and will focus on protection plans, which
Bonus' and 'Guaranteed Income') can be the first time the online market will currently accounts for nearly 25 per
be opted for any time during the policy witness a shake-up in at least six years. cent of its product mix.
term as per the need. "The price increase has been talked "We grew by nearly 30 per cent in H1
The plan offers the flexibility to receive about for six months and now looks and in Q2 of this fiscal. Our growth has
income and avail of life cover till 100 inevitable. Higher claims due to Covid been close to 40 per cent. We have had
years, 85 years, or 75 years of attained have hit reinsurers as a result of which strong numbers in November. We are
age.One can also customize their prices have increased. We have already hopeful of 30-40 per cent growth over
protection cover by opting for riders. filed for an increase with the IRDAI on the next three years," Tahilyani told.

14 The Insurance Times, January 2022