ICICI Pru Life set to exploit pension market

Our Banking Bureau
07 September 2002

Mumbai: ICICI Prudential Life Insurance, the No 1 private life insurer in India, has emerged as a key player in the retirement solutions market, garnering over 25 per cent of premium contributions to pension plans during April-June 2002.

The companys penetration into the retirement market was driven by the launch of a slew of retirement products and a focused approach towards driving awareness of the category and expanding the market.

ICICI Prudential entered the retirement space with the launch of ForeverLife and ReAssure just one year ago. It subsequently launched two unit-linked pension plans, LifeTime Pension and LifeLink Pension, in April 2002.

Says ICICI Prudential Life Insurance managing director Shikha Sharma: Increasing longevity, lower working tenures and an increasing dependency ratio are some of the factors that make retirement planning a must for everyone in India. We recognised this need and decided to focus our efforts on educating consumers about the need for retirement planning, and then meeting the need with a range of products. Weve complemented this effort with extensive and specific training for our advisors, and also held seminars for consumers on the topic of life insurance and retirement planning, which were met with an encouraging response.

The comprehensive regulations laid down by the Insurance Regulatory Development Authority for life insurers operating in the pension space have also been instrumental in driving category growth, she says. In fact, life insurers are a natural fit for pensions market as they have the expertise in managing long-term savings, which is critical for any pension operator.

There are some trends that testify to the importance of retirement planning. Nearly 90 per cent of the working population does not have any formal provision for old age, so the retirement planning category becomes relevant to a wide section of the population.