‘The life insurance sector will continue to be a preferred tool for long-term investment’

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Even as competition intensifies in the domestic life insurance sector, ICICI Prudential Life (ICICI Pru) has maintained its top slot in the country's private sector life insurer segment. Shikha Sharma, managing director & CEO, ICICI Pru, in an exclusive interview, speaks to Kumud Das of The Financial Express about the broad changes taking place in the life insurance market.

How has your performance been in the first half ?

We will be declaring our half yearly numbers, shortly. For the five months ending August 31, 2008, we continue to lead the private segment and sustained our dominant position in the industry with a market share of 13.7% (Source: IRDA, weighted new business premiums for individual business). Our comprehensive product portfolio combined with our service propositions and prudent investment strategy not only attracts new consumers but ensures they remain with us. This is reflected in our growing base of policies and assets. As on August 31, 2008, we sold over 8 million policies and managed assets to the tune of Rs. 30, 000 crore. Our presence across the country through 2,050 branches, 261,000 agents, 20 bank partners and a huge corporate agency force has enabled us to provide effective life, health and pensions solutions to consumers across the country.

Do you think that the life insurance industry is slowing down?

While the current volatility may have a short-term impact, the life insurance industry’s medium and long-term growth prospects are influenced by our economy’s strong fundamentals as well as the industry’s sound regulatory framework. The Indian life insurance industry’s growth rate may not be similar to what it clocked last year, but it remains one of the fastest growing industries in the country. During the first quarter of the current financial year, we grew over 14% as an industry, with the private sector logging a whopping 73% growth. I believe the Indian life insurance sector will continue to enjoy the status of a preferred tool for investing one’s long-term savings. In fact, the industry’s focus on safety will strengthen its position further.

How are ULIPs performing, particularly equity-linked ones?