Reliance Life aims to double market share in 3 years


Prime VIP
Shimla, July 9

Reliance Life Insurance has crossed the 6-million policies mark in less than five years to emerge as the top private player in the life insurance sector in the country.

Announcing this here today, president and executive director of the company, Malay Ghosh, said the company issued 2.3 million policies in 2009-10 alone, the largest business addition by the company in any fiscal. It was the 11th company to enter the sector in 2006 and was doing exceptionally well as evident from the achievement in terms of various performance parameters. It had jumped to 4th place in terms of total premium and 3rd in weighted received premium.

The objective of the company is to increase its market share from the existing 5.5 per cent to 10 per cent over the next three years by three-pronged strategy of diversification into health insurance, focussing on traditional products, and targeting the vast rural market. The plan is to achieve three-fold increase in the new business premium (NBP) from Rs 6,500 crore (2009-10) to Rs 20,000 crore and the assets under management (AUM) from Rs 13,677 crore to Rs 30,000 crore over the next two fiscals.

The net loss came down from Rs 1,048 crore to Rs 284 crore in 2009-10 and it was set to achieve break even during the current year. The company will now enter the health insurance sector and aims to find a slot among the top three private players in the country through its network of 1,247 branches and 1,95,000 agents.

The company’s strategy to gain a cutting edge over competitors was to provide the best customer services and ensure speedy settlement of claims. Last year, it paid over 10,000 death claims involving an amount of Rs 100 crore and settled 13,000 other claims, 94 per cent of which were dealt with within 30 days.