PRIVATE Life Insurer, Shriram Life Insurance Company have recorded over five times growth in profit after tax (PAT) at Rs 88 crore in the financial year ended March 31, 2018, as compared to Rs 17 crore in the previous financial year.
The individual renewal premium collection achieved a growth of 37 per cent while the gross premium collections posted a growth of 23 per cent to cross the milestone of Rs 1500 crore in FY18 over the previous financial year. The value of the in-force book also showed a 50 per cent growth, highlighting the results of a strong focus on fundamentals.
Casparus Kromhout, MD & CEO, Shriram Life Insurance, said, “SLIC ended this financial year 2018 on a very positive note achieving many milestones and many firsts, thanks to our persistent efforts to reach out to more customers and meeting their needs by leveraging technology and improving fundamentals”.
Kromhout added, “As part of the Shriram Group, our company focuses on the ‘aam aadmi‘ customer segment with over 50 per cent of their policies sourced from the rural area and a significant chunk from the tier II and III towns. SLIC works with the purpose of providing life cover to these families that are most vulnerable to financial catastrophe due to the untimely loss of a breadwinner. This is true financial inclusion.”
The company ranks 8th amongst the private insurers in a number of policies and expects to grow at a greater pace in the current financial year. SLIC was able to achieve this growth despite braving a year of consolidation in terms of cost reduction and channel restructuring. The year witnessed great focus by SLIC to improve its fundamentals and some defining processes and initiatives to improve business quality and customer experience.
Some initiatives undertaken by SLIC in FY18 include:
* Persistency has always been a challenge considering the low awareness levels in the mass and rural markets: SLIC was able to set processes to reach out to these customers and 13th-month persistency reached close to the 60 per cent mark which is a benchmark for the said segment.
* The company progressed towards Distribution Diversification with significant progress made in digital business using big data analytics and innovation. The digital channel was able to sell more than 2000 policies in its first 3 months of operation.
* Improvement in Insurance Basics: Claims settlement ratio crossed 80 per cent another benchmark for the mass market segment.
* Underwriting advancements, live investigations, strict fraud management and a very strong persistency improvement has lifted the company to a new level of profitability. Claims and Customer First initiatives have contributed to great customer value growth.
Advancements in customer service:
* 48 hours claim settlement – Initiative to settle valid claim within 48 hours. Streamlined processes have made this big difference where it matters most to customers.
* Shubchintak: Initiative to meet claimant’s family to assess and assist in the claim settlement process. Team also detected and facilitated the employment of six persons from the deceased life insured’s families.
* Steps towards innovation to provide new avenues to reach customers: Tie up with insure-tech SureBüddy to develop an application providing sponsored insurance for android users. The SureBüddy application was launched in February this year.
Kromhout concluded, “SLIC’s growth has been satisfactory at 23 per cent, considering the strong potential provided by the macroeconomic factors and current low penetration levels; we expect to grow at a greater pace in the current financial year. SLIC would be continuing to focus on leveraging technology for new innovations; ease of doing business and improve insurance fundamentals with the aim of providing greater value to its customers and employees.