Shriram Life Insurance Company Managing Director and CEO Casparus J.H. Kromhout says that their next goal is to reach 1% market share in Maharashtra, Gujarat and Karnataka in a year or two and take it to 2%.

Shriram Life aiming at threefold growth in annual premium equivalent by FY30

by · The Hindu

Shriram Life Insurance Co Ltd., (SLIC) is aiming at a threefold increase in annual premium equivalent (APE) as part of its Vision 2030, said MD and CEO Casparus J.H. Kromhout.

“We ended FY24 with over ₹900 crore of individual APE and are aiming for about 3x of that by FY30,” Mr. Kromhout told The Hindu.

“We have a long way to go to achieve the vision. It requires us to do about 25% compound annual growth rate on FY22 data. Can we get to a 25%? Doing 25% year-on-year for seven years, seems tough as the base keeps growing,” he said.

In FY23, Shriram Life posted a 24% growth, which was just below its target. In FY24, it did 40% in terms of run rate and slightly ahead of the curve. In the first half of FY25, the company posted 50% growth and 131% rise in individual policy sales mostly driven by rural and urban population, he said.

Explaining further, he said: “We were hoping to end FY25 close to 50%, but now there’s a lot of uncertainty surrounding the special surrender value regulation, which comes into force from October 1. I think 30% will be possible, but we’ll have to now wait and see.”

He also said that the company’s market share in individual new business premium in the private industry was still low. Shriram Life has presence in 15 States. Andhra Pradesh has a market share of 5.2%, followed by Telangana 3.6%.

“It is less than 1% in Maharashtra, Karnataka and Gujarat. Our next goal is to reach 1% market share in these three States in a year or two and take it to 2%,” he said.

The private insurer started settling claims within 48 hours. Now, it is being settled in 12 hours, he said. About 90% of the claims are settled within 12 to 48 hours, Mr. Kromhout said, adding that the claim settlement ratio stood at 98% and the firm was trying improve it to 98.5% or 99% and settle claims in six hours.

Shriram Life offers various customised solutions with a minimum premium size of ₹20,000 against the industry average of ₹80,000.

Published - September 28, 2024 07:34 pm IST