Page 15 - Insurance Times April 2022

insurance premiums significantly in the crore worth of claims against Rs 167.7 retirement, legacy planning and buying
past two years. This is on the prodding crore last year, according to a a property.
of reinsurers because of the worsening statement.
mortality experience. SUD Life registers 80 pc
"The second wave of Covid impacted
every insurer, but we are in a unique jump in new business
Insurance firms step up position to cover breadwinners from premium to Rs 1,309 crore

stock purchases amid the lower-to-middle income segments.
As of December, we have paid claims in Dec quarter
market swings
that have helped over 38,500 families, SUD Life reported an 80 % jump in its
Domestic insurers, led by the Life thrice what we did last year," said new business premium income to Rs
Insurance Corporation of India (LIC), Casparus Kromhout, MD & CEO, 1,309 crore for the quarter ended
have stepped up their equity purchases Shriram Life Insurance. December 2021.
amid relentless selling by foreign The claims settlement ratio of the
portfolio investors (FPIs). Since The insurer honoured around Rs 550
November last year, domestic company has improved to 95 % from crore worth of gross claims during nine
institutional investors (DIIs) have 92 % in FY21 and 91 % of all retail months to December 2021, compared
shopped for equities worth Rs 1.53 claims made after three years of policy with Rs 157 crore in the year-ago
trillion, of which roughly a third have commencement were settled within period.
24 hours. More than 48 % of the retail
been bought by insurers. It witnessed a 29 % rise in renewal
claims settled by the company were
LIC alone accounts for about 70 % of from the rural segment. premiums to Rs 1,536 crore, compared
the insurers' flows, according to Andhra Pradesh, Telangana, Uttar with Rs 1,193.4 crore during this period
market watchers. This buying, and witnessed a further improvement
combined with inflows from mutual Pradesh, Madhya Pradesh and Tamil in the 13th-month persistency.
funds (MFs), which have pumped in Nadu accounted for the highest retail The company's 13th-month persistency
excess of Rs 1 trillion since November, claims settled. ratio now stands at 78.77 %, compared
has provided a semblance of stability The company said initiatives like Rapid with 76.34 %. The solvency as of
to the market during periods of Claim Settlement, under which valid December 31, 2021, stood at 1.86 times.
volatility. The indices have slid about claims can be settled within the first 12 "The recent Economic Survey shows
6.5 % since November. hours of intimation, have helped that the economy has been responsive
provide timely relief to aggrieved
"The life insurance industry has seen high with the gradual receding of COVID-
double-digit growth with regular flows in families. 19, coupled with a robust vaccination
the form of half-yearly or yearly renewal drive including children.
premiums, a part of which has made its Kotak Life launches "Increasing interest about insurance
way into the market," said Mihir Vora, Fortune Maximiser among people towards securing life's
director and chief investment officer at Kotak Mahindra Life Insurance certainties is also aiding growth," SUD
Max Life Insurance. announced the launch of a limited pay Life Managing Director and CEO Abhay
participating endowment plan, which Tewari said.
Shriram Life Insurance can be tailored to the customer's
In the nine months ended December
settles claims worth more requirement to help plan for a better 2021, assets under management
future.
than Rs 400 crore in 9 (AUM) grew to Rs 14,377 crore from
Called Kotak Fortune Maximiser, it will Rs 11,408 crore, registering a growth
months help customers accumulate a corpus to of 26 % on the year.
Shriram Life Insurance has paid more fulfil their larger goals without the "We continued to deliver consistent
than Rs 400 crore worth of claims financial burden, the company said in and robust retail EPI (estimated
during the nine months of this fiscal. a statement. premium income) growth of 60 % in
The private insurer settled insurance Customers will have three bonus 9MFY22, whereas the industry grew
claims for 38,590 persons, (34,407 payout options, including an 20 %, with the private sector
group and 4,183 individual) against immediate or deferred cash bonus witnessing a growth of 30 % while
12,938 claims in the same period last payout as well as paid-up additions, maintaining a balanced and profitable
year (11,009 group and 1,929 which are ideal for those with long- product mix catering to customer
individual claims). It settled Rs 408.42 term financial goals, including needs," he said. T

The Insurance Times, April 2022 15