Life insurance companies have to deal with uncertain times: Rajesh Sud

Revenue was up 1% in first half of the year. Do you see any improvement ahead?

Revenue generation has two parts — the new premium and the renewal business. If I look at the nine-month number, we were flat or slightly in the negative zone in new sales, but our renewal business segment is growing. Until there are positive news coming for the industry, it would be difficult to see new sales growing too much for the industry.

New premium growth has fallen. What is your target for new premium growth?

It is hard to take an absolute number. Compared with the industry’s growth figure, we have outperformed in the last three years. We are number-one company for the sixth consecutive year in terms of conservation ratio, which means we have been able to retain our customers. New sales are only one-third of our business, and two-thirds are now from customers renewals.

The industry has been affected after Irda tightened the norms. Do you think there is more clarity and relief from the regulator now?

We are yet to see the final draft of the product guidelines that

... contd.