Life insurance firms to battle it out for unit-linked supremacy

For life insurance companies, the battlefield has moved to the unit-linked platform. And Birla Sun Life Insurance Company, currently placed number two among the private insurers, takes the credit for such a shift.

"We are number one""all the other players are copying us," said Gary M Comerford, vice president and general manager (India) of Sun Life Financial.

Sun Life, the Canadian-based insurer, decided when it entered India with the Aditya Birla Group that it was not going to bring in old technology like some of its counterparts.

"Birla Sun Life was the first to introduce the unit-linked product in the market as we felt the Indian market was ready for it. We decided our strategy would be to use the unit-linked platform, which would be the battlefield we would play on. Today everyone has moved to our platform, but the early advantage always goes to the first mover," said Comerford.

Foreign insurance partners may not have more than 26 per cent stake in domestic joint ventures. However, the skill-set and best practices they 'steal' from their outfits across the globe and bring to the table is perhaps just as valuable as the 24 per cent additional stake the Indian partner holds.

Known as the 'thief' for stealing the best from across Sun Life's global ventures, Comerford has been responsible for identifying the worldwide expansion opportunities.

"Companies seeking to expand internationally, today base any plans primarily on the available market opportunities and the strength of the local economy where expansion will take place. India has well demonstrated its ability to meet high growth targets in terms of gross domestic products, and the future looks even brighter," he told Business Standard.

This is Comerford's 47th visit to the country since 1996 when he decided that India was certainly a country of opportunities.

"Today more and more people at our headquarters are seeing the Indian numbers becoming larger. India is significant on our global map," he added.

Birla Sun Life, currently at number two position in terms of premium collection among the private insurers, believes that as a package "we are certainly the leader in many fronts, which is critical to the long-term business in India," said Comerford.

His list included average sum assured, innovation, persistency, integrity, transparency, customer focus, etc.

The knowledge transfer from the global partners has been very high, but whatever has been brought in has been "customised" for the Indian market, said Comerford.

At the same time, he admits that while foreign partners bring a lot to the table in terms of IT, systems, products and other detailed applications and skills, "we would not be as successful had we been just Sun Life."

On the issue of raising foreign direct investment in the insurance sector, Comerford is confident that the government will address the additional 24 per cent foreign stake "sooner than later".

Especially since the Indian partner today needs to bring in more capital with their respective 74 per cent stake in the venture.