Goa, Dec. 5: Reliance Life Insurance Company, the Anil D. Ambani group firm, is hoping to beat back the challenges posed by upcoming regulatory changes and a gaggle of competitive rivals to sustain double digit growth rates in its individual business segment at least over the next three years.
The life insurer aims to launch 25 products from January 1 when the new regulatory regime kicks in. Under the new guidelines, life insurance products have been placed in three broad categories: traditional, variable and unit linked insurance plans.
“We have received most of the product approvals from the IRDA and will be launching these over the next three months. We will largely focus on traditional plans and continue to provide simple and need-based solutions to customers,” CEO Anup Rau said.
Traditional plans will contribute 80 per cent, while the unit-linked plans will contribute around 20 per cent to the top-line in the new product environment. The company has seen its individual business growing around 25 per cent.
New norms governing commission paid to thousands of agents selling and distributing life insurance plans are also set to come into effect from January. These rules, which cap the commission paid to agents, is expected to result in attrition and impact the growth rate.
The reporter was on a sponsored trip to Goa.