The life expectancy in India is increasing and our Life Goals are becoming more focused on long term financial planning.
In each segment of products, we offer long term income, liquidity, accumulation along with life insurance cover. We will continue to invest in products to address the varying ‘living benefits’ needs of our customers. However, our endeavor will be to continue to maintain a balanced mix which provides maximum value to our three key stakeholders i.e. Customer, Distributor and Shareholders.
With an aspiration to provide our customers with the ‘Best in Class’ product suite, we launched Guaranteed Pension Goal which is one of the most unique, comprehensive and competitive annuity plan in the industry.
Our other key product offering are:
All the above and our other flagship products have helped us cater to different segments and needs of customers to enable them to achieve their goals at various stages of life. We will maintain our focus to innovate and launch feature rich customer centric products that will be ranked amongst the best in the market. Also, we continuously benchmark our investment returns with relevant market benchmarks and peers to deliver superior returns while maintaining quality of assets.
In line with our endeavor to be the brand of choice for higher income retail customer segments, we have aligned ourselves towards gaining mind share of mass affluent and above category of customers while continuing to maintain strength in the retail mass market. In FY2021, we have revised and sharpened our customer segmentation logics through multiple parameters, thus enabling us to create customer segment based product offerings, and also to improve our risk management capabilities.
Our strategic orientation has started showing positive results, with share of mass affluent and above customers mix moving up from 52% in FY2020 to 59% in FY2021. Our distribution set up has enabled us to cater to various customer segments, for instance, different clubs of IC’s in Agency, dedicated verticals like Elite Relationship force in proprietary sales channel, and diverse range of partners like SFBs, NBFCs, Large and Mid-Sized Private Banks, Brokers and Web Aggregators, all cater to specific target segments of customers. We will be constantly working towards achieving higher share of mass affluent and above category in the years to come.
Traditionally, the Company has been an agency dominated Company with limited retail business contribution from non-agency channels. We embarked on a journey to scale up the alternate channels by focusing on:
We have tied up with several partners as Corporate Agents in the recent past. The key new partnership includes Axis Bank, IDFC First Bank, RBL Bank, India Post Payment Bank, Karur Vyasya Bank, Paytm insurance broking and PhonePe. Our alternate retail channels (non-agency) now comprise IB and BALIC Direct channels which contribute to about 55% of the retail business.
New Business Premium
(₹ In Crore)
We continued to demonstrate leadership in online investments space in FY2021 also by creating innovative customer value propositions. Noteworthy offering in this space is the Capital Guarantee solution. In addition, we continued our leadership in return of mortality charges ULIPs (Life Goal Assure, Long Life Goal and launch of Smart Wealth Goal with unique child and single pay propositions). Overall non protection business added ₹ 160.1 crore of ANP in FY 2021.
Some key customer propositions are:
We also scaled protection business through feature rich and price competitive term plan, Smart Protect Goal (SPG) and added 14,209 NOP and ₹ 24.7 crore Annualised New Business Premium (ANP) issued in FY2021. Total ANP issued for FY2021 was
₹ 184.8 crore.
There has been significant focus and rigorous efforts, to build a sustainable and good quality renewal book, arrest the surrenders and improve the customer experience. Below are the key initiatives undertaken for each category:
The results of our efforts can be seen in the improvement in our persistency, growth in renewals, and reduction in grievances.
The pandemic has pushed businesses across various sectors to change the way they operate and the insurance industry is no exception. From selling new policies, servicing customers to settling claims, the pandemic has pushed insurance companies to depend heavily on their digital technologies. At Bajaj Allianz Life Insurance, technology team in collaboration with various business functions successfully implemented several projects that strengthened the digital mode of sales and servicing and ensured that all internal and external teams could collaborate smoothly during the time of social distancing and Work From Home (WFH).
Major digital initiatives on customer experience are:
Company has initiated the digital transformation journey and adopted open architecture on Public Cloud for its application landscape. Technology adoption of micro services, containerization is now getting widely used to create unified service catalog and allow agents and tie-ups to issue policies via direct or integrated channels seamlessly and securely. Immediate WFH enablement for entire workforce was another major task achieved.