IGI Logo

Shriram Life Insurance reported robust FY23 profits at Rs 156 crore on the back of growth in individual non-single premiums. For the year-ended March 2023, Shriram Life posted a retail APE growth 24% YoY, underscoring faster growth than the total industry for Individual New Business APE.

For the period April’22 to Feb’23, while private industry grew 19% on Retail APE, Shriram Life showed stable growth at 22%. Even as private industry experienced an additional boom in March owing to the Budget announcement on taxation of higher premiums, Shriram Life continued to report steady growth at 31% (for March’23). Shriram Life’s premiums are not in the Rs 5 lakh segment.

The company, promoted by Shriram Group and South Africa’s Sanlam Group, progressed in its purpose to provide life protection cover among communities that need it the most. The company sold 2,90,156 policies in FY23. Including group business SLIC provided life cover to over 53 lakh new lives during the year. Shriram Life sources 45% of its retail business from the rural sector.

The company saw a 9% increase in renewal premium to Rs 1394 crore alongside a 17% rise in AUM at Rs 9,012 crore. In FY22, the company’s AUM stood at Rs 7,683 crore while Profit After Tax (PAT) saw a dent at Rs 3 crore, due to the impact of the pandemic.

Claims settlement for individual policies improved more than 100 basis points to 97.4%, with over 91% of its non-investigated claims (claims arising after 3 years of policy inception) settled through the Rapid Claims Settlement process that includes claim settlement within 12 hours. Approximately 48% of Shriram Life’s retail claims were from the rural segment.

“Our growth has advanced thanks to the adoption of technology and innovation, enabling more rural policy holders to complete their paperless statement. We’ve strengthened our digital capabilities with a focused approach to solve customer needs and, at the same time, maintain engagement with our customers,” said Casparus J Kromhout, Managing Director and PCEO, Shriram Life.

“We saw the regulator introduce critical reforms that had a positive impact on the industry. The industry is at a stage with high potential to grow due to diverse market demographics, increasing awareness and technological advancements. Shriram Life looks forward to continuing the growth momentum in the coming years and continue its purpose to provide life insurance protection to more families in the rural segment,” he added.

The policy-mobilizing agents’ app Astra, chatbot ShriA, and the latest addition — Shriram Smart Suraksha Card — along with e-KYC face authentication have enabled Shriram Life’s customers to seamlessly experience premium renewal, access policy bond or even buy fresh policies. Shriram Life’s Smart Suraksha Card is set to drive paperless insurance, helping users to renew premiums by way of QR code and retrieve policy bond data which users can carry around with them.  

Definitions and abbreviations -

* Annualized Premium Equivalent (APE) - The sum of annualized first year regular premiums and 10% weighted single premiums and single premium top-ups

* Assets under Management (AUM) - The total value of Shareholders’ & Policyholders’ investments managed by the insurance company

* New business received premium - The sum of first year premium and single premium, reflecting the total premiums received from the new business written

* Renewal premium - Regular recurring premiums received after the first policy year

* Solvency ratio - Ratio of available solvency margin to required solvency margin

* Total premium - Total received premiums during the year including first year single and renewal premiums for individual and group business

Above views are of the author and not of the website kindly read disclaimer