Aditya Birla Sun Life Insurance (ABSIL) is aiming to double its business in the next three years, with a growth rate of 25-26%. In the first half of FY25, the company’s gross written premiums (GWP) increased by 33%, surpassing the industry growth of 21% and the private life insurance sector’s 24%. Proprietary and bancassurance channels contribute 38% and 62% of ABSLI’s business, respectively, with both showing strong performance. The company has made significant investments in agency and direct business, and is focusing on improving productivity and capacity.
Regarding the impact of recent regulatory changes, ABSLI has introduced differentiated commission structures for distributors to address margin challenges. The company has also redesigned loyalty benefits to make maturity returns more attractive for customers exiting in the second or third year.
On the discussion about a potential GST rate cut on life and health insurance products, ABSLI believes that while a rate cut may slightly reduce costs for customers, the company’s bigger concern is the rising cost of protection products due to increased reinsurance rates. The company is looking forward to a reduction in reinsurance rates to drive the protection business growth.