In the first quarter of the current year, Edelweiss Tokio Life Insurance Company reported the premium income increased by 35% and it is expected to increase more in this run rate for the full year, Subhrajit Mukhopadhyay, Chief and Appointed Actuary of the company, said.
The premium income of Rs. 228 crores was registered in the fiscal 2016-17. Expansion of branch network, agency force and expected increase in bancassurance alliances is being planned to speed up the growth rate in the current year, he said.
Also there is focus on quality growth and ensuring that the growth is sustainable. There has been a conscious focus on improving the 13th month persistency ratio which is improved from 50% three years ago to 72% last year
Discussing about trends in customer preferences, Mukhopadhyay said there was an increasing shift towards long-term guaranteed products. The long-term guaranteed products offer returns of between 4.5 and 5.5 %, he said. Strongly advocating such products, he said that with interest rates generally trending downwards in a secular fashion, this was a very good deal for customers to lock into. About 45 % of the company’s premium collections come through such products, he said.
