Private insurer Star Union Dai-ichi,which reported 36.3 per cent growth in total premium collection at Rs 1,271.95 crore in FY12,today said it has increased its policy rates by 1.5 per cent from this month.
The total premium collected during FY11 stood at Rs 933.18 crore,SUD Life Managing Director and CEO K Sahay told reporters here.
“We expect a similar growth this year as well. We expect at least 30 per cent growth in overall business and 25 per cent in new business,” he said.
About the upward revision of policy rates that came into effect from April 1,Sahay said the raise was effected owing to two per cent increase in service tax proposed in the Union Budget.
The company’s new business grew by 27 per cent during the year to Rs 964.7 crore compared to Rs 758.55 crore in FY11,he said,adding during the year bygone,the company grossed a renewal premium at Rs 307.18 crore compared to previous year’s Rs 174.62 crore.
The bancassurance major also sold a total of 1,50,932 policies during FY12 compared to 97,750 in the previous fiscal and also successfully settled 96.4 percent of total claims in FY12.
The private insurer,which is a joint venture of Bank of India,Union Bank of India and Dai-ichi Life Insurance,is planning to come out with 3-4 products this year.
“We hope to come out with two products,one each in unit-linked and traditional,one simple online term plan and one pension plan this year,” Sahay said.
About capital adequacy,he said the company did not need additional funding this fiscal,however,further infusion in next fiscal will depend on the business growth.
When asked about regulatory guidelines in the bancassurance segment,Sahay said,”It is at draft stage. However,we are well prepared for anything that will be in the
The company is planning to remain bancassurance specialist and has a product mix of ULIP 72: Traditional 28,he added.
“We slowly plan to shift our focus to traditional offerings in future as ULIP products are no longer attractive,” Sahay said.
The company’s total asset under management (AUM) currently stood at Rs 2,800 crore.