Birla Sun Life achieves highest average premium per policy

Our Banking Bureau
27 May 2003

In the second year, the company achieved sales corresponding to an annualised premium of Rs 170 crore (Rs 151 crore taking 10 per cent credit for single premium cases), which is a growth of 385 per cent over the previous year's annualised premium of Rs 36 crore. The total sum assured since inception stands at Rs 6,088 crore. The average premium per policy of Rs 19,500 and the average sum assured of Rs 3,26,000 is the highest in the industry today.

Says Birla Sun Life Insurance (BSLI) CEO Nani Javeri: "It is most satisfying to report that Birla Sun Life Insurance is placed among the top three life insurance companies, including LIC, based on annualised new business premium, and is well on track to achieving its strategic target of a new business market share of 3 per cent. This is commendable considering the increased competition prevalent in the market."

During the year the company sold 75,000 (including rural policies) individual life policies, which is a four-fold increase over the previous year with the annualised new business premium totalling to Rs 126 crore. It is important to note that in BSLI sales of the single premium bond (SPB) contributed to less than 1 per cent of the total sales against an industry norm of 40 per cent.

In the group life business the company covered 80,000 lives with total funds mobilised of Rs 43.4 crore (including committed funds amounting to Rs 20 crore), clearly establishing the No 1 position among the private players with a market share of more than 50 per cent.

The company successfully met its rural and social sector targets. It sold 10,500 policies in the rural sector and covered 12,000 lives in the social sector, which is well above the Insurance Regulatory Development Authority requirements. The company looks at this segment as an opportunity and not just an obligation.