Bajaj Allianz sees drop in biz from HNI

Mumbai, July 26 | Updated: Jul 27 2006, 05:30am hrs
Private life insurance player Bajaj Allianz Life Insurance have noticed a slowdown in its business arising out of high networth individual (HNI) customer on account of the stock market volatility. HNI customers contribute nearly 10%-15% of the total business for the company.

Speaking about this Sam Ghosh, CEO Bajaj Allianze Life Insurance said," We have noticed that only HNI clients from the metro have switched in funds or moved out because of stock markets volatility." The company has posted nearly 130% growth in the first quarter of the financial year, he added.

Further, Ghosh said they are expecting a fall in the business arising from the single premium products. Currently, one third of business comes from the single premium products as against last years 50%, said Ghosh.

He also said that ULIPs growth would slow down with new guidelines issued by IRDA. Last month ULIP contributed 93% which is expected to come down to 85% he added.