 "Will launch linked, health plans in online space: Munish Sharda")
Private life insurance company, Future Generali India Life Insurance is now gradually moving into the digital space by launching online products. In an interview with M Saraswathy, Managing Director & CEO Munish Sharda talks about the company’s strategy and the way forward. Edited excerpts:
You recently launched an online term plan. Weren’t you a late mover?
We are trying to bring in a different approach in line with our journey of having simpler products. The difference in our term plan is that it is linked to the customer need and positioned on flexibility. It allows you to customise the plan according to your needs and choose both — a lump sum cover plus fixed income protection or increasing income protection. It gives individuals an option to choose how they want the cash flow. It is simple and competitive.
Are you planning more products on the online platform?
We are planning two to three more products in this space. There are a lot of opportunities in this space and we are planning a health plan and a linked plan. However, for us, digital is not just from sales perspective, it includes better customer service, paperless transactions and over-the-counter products.
The regulator is also talking about simple over-the-counter products that can help boost penetration. Have you begun work on these?
You have products such as Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana that have a very simple product structure. We are planning to launch such products. Here, the key is that the product should be simple and easy to understand.
You have an advantage of having access to Future Group’s retail presence. How are you planning to leverage it?
We are looking to sell products through Future Retail. Here, they could be our corporate agents and their employees could sell insurance, after securing the appropriate licenses and training. Further, we have hired agents from Future Group customers, including housewives and retired professionals and have seen some success in that initiative. We have also run loyalty programmes and will tap into the customer base of Future Group to sell our insurance products. Even our agents are composite agents, meaning, they sell our products and products of Future Generali India Insurance which is the general insurance company.
Will banks be a channel that you are looking to tap? Is expansion on physical presence on the anvil?
We are expanding distribution (via branches) in big markets such as Mumbai, Delhi-NCR and Kolkata. Also, we are optimistic on the norms for corporate agents that include banks. Talks are on with some banks and we are hopeful of some of them opening up their network to additional insurers. We are also hiring 7,000-8,000 more agents this financial year.
What is the growth in business that you expect for this financial year?
We expect 10-15 per cent premium growth.
Our employee benefits in the group space had seen a 50 per cent growth in premiums. We have entered new tie-ups with non-banking financial companies (NBFCs) for our credit life insurance to cover their borrowers and will be tying up with five more NBFCs in this financial year.
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