Shriram Life Insurance Company Ltd is charting a course for expansion, aiming to deepen its footprint in tier 2 and 3 towns across 15 states in India. The move underscores the company’s commitment to reaching underserved customer segments in regions where the demand for life insurance is significant.
Strategic Focus
Casparus J H Kromhout, Managing Director and CEO of Shriram Life Insurance, emphasized the company’s strategic shift towards focusing on states with higher demand for insurance products. By concentrating efforts on deepening penetration within these states, Shriram aims to optimize operational efficiency and enhance service delivery.
Customized Solutions
Shriram Life Insurance stands out for its offering of customized solutions tailored to meet the needs of diverse customer segments. With a minimum premium size of Rs 20,000, the company aims to make life insurance more accessible to a broader spectrum of customers, compared to the industry average of Rs 80,000.
Geographical Priorities
While Shriram Life Insurance maintains a strong presence in states like Andhra Pradesh, Telangana, and Tamil Nadu, it eyes expansion into states with untapped potential such as Uttar Pradesh, Odisha, and Bihar. The company recognizes the vast opportunities presented by these under-penetrated markets and aims to capitalize on them through strategic initiatives.
Regional Contributions
The Southern region emerges as a key contributor to Shriram Life Insurance’s retail new business premium, accounting for 47% of total contributions. The East and North East regions follow closely at 16%, highlighting the geographical diversity of the company’s business operations.
Collaborative Partnerships
Shriram Life Insurance has forged partnerships with cooperative and regional rural banks, leveraging synergies to drive business growth. These partnerships extend beyond mere collaboration, focusing on co-creating solutions and fostering mutually beneficial relationships.
Financial Performance
The company’s financial performance reflects its growth trajectory, with a profit after tax of Rs 158 crore for the financial year ending March 31, 2024. Notably, Shriram Life Insurance witnessed a significant surge in new business premiums, recording a 62% increase compared to the previous year.
Future Outlook
Looking ahead, Shriram Life Insurance remains focused on strengthening its individual and retail business segments, with ambitious growth targets set for the current financial year. The company aims to bolster its sales diversification efforts through a combination of in-house sales capacity development and strategic partnerships with banks and other institutions.
