The challenging business environment in the wake of the pandemic and an increase in Covid-related claims notwithstanding, Tata AIA Life Insurance is hopeful of maintaining its growth momentum during the current financial year backed by a steady demand for protection and long-term guaranteed income plans.
According to Venky Iyer, Chief Distribution Officer, Tata AIA Life, the young millennials, first jobbers and women would be some of the key segments driving “fast growth” moving forward.
Tata AIA Life registered nearly 27 per cent growth in Individual Weighted New Business Premium (IWNBP) income at ₹3,416 crore in FY-21 as compared to ₹2,692 crore in FY-20. The total premium income witnessed a growth of 34 per cent at ₹11,105 crore as against ₹8,309 crore in FY-20 while the renewal premium income grew by 37 per cent at ₹6,961 crore during FY-21 as against ₹5,066 crore in FY-20.
“We believe protection solutions will continue to see demand and growth. Also, given the current economic uncertainty, long-term guaranteed income plans will be a must have in every portfolio. We see growth opportunities across segments to continue given the wide variety of emerging life stage and lifestyle based needs. We are very upbeat about the young – the millennials, first jobbers and women as key segments when it comes to fast growth,” Iyer said in an e-mail response to a questionnaire sent by BusinessLine.
As of March 31, 2021, the total Assets under Management (AUM) grew by 47 per cent to ₹46,281 crore as compared to ₹31,450 crore in the last fiscal.
The pandemic has led to a marked dip in household allocations for discretionary spending vis-a-vis essentials and savings, particularly in the guaranteed returns space. Therefore the need for comprehensive protection, covering health and life insurance would continue to stay, backed by much greater awareness than before.
The company plans to bring further innovation in the protection space and also bring in customisable propositions in the long term savings space with guaranteed long-term income. “We also see opportunity in single pay product space in both the savings and annuity categories. In a context characterized by greater awareness about protection and acceptance of digital ways of life, we strongly believe that product innovation, convenience through digitization, and addressing new segments such as the millennials and women will be key,” he said.
The life insurer had introduced Param Rakshak series, a 360-degree protection proposition on a unit-linked platform. This apart, it also introduced a set of value boosting riders including a wide variety of coverages ranging from accident, disability to multi-stage critical illnesses.
It also launched Fortune Guarantee Plus, a plan with multiple premium payment and benefit terms along with the flexibility of being customized to one’s cash flow needs.