After having introduced what it calls the "first wealth management insurance product", Kotak Life Insurance is now close to coming up with "innovative" traditional whole-life and health products.
KOLKATA: After having introduced what it calls the "first wealth management insurance product", Kotak Life Insurance is now close to coming up with "innovative" traditional whole-life and health products.
Being one of the few insurers with an average ticket size as high as Rs 32,000, Kotak Life is targeting the top-end of the market with its new "Platinum Advantage Plan".
On the company's plans in the current year with DNA Money, Rahul Sinha, vice president marketing, Kotak Life, said: "We estimate the growth to be 120% and would close the year with a premium income of about Rs 1,100 crore. We have aggressive plans for expansion and will expand to 140 offices by year-end from 85 at present. This will mainly be in Tier 1 and 2 towns".
"Although we will continue to increase our unit linked portfolio, there is a market for traditional plans particularly in the metro areas. The traditional endowment plan, for which we are awaiting IRDA approval, will be a little different from the wholelife policies in the market. The new product will have a pension plan built into it," Sinha said.
Kotak Life has almost 85% of its premium coming from unit-linked products.
The new product, which offers capital protection and embedded investment advice, life cover and flexibility of adjusting risk profile will be targeted to about a 3.7-4 lakh population, able to pay up an average premium of around Rs 3 lakh.
On whether this was the right time to introduce its Platinum Advantage Plan, Sinha said, "Seeing the sentiment of the market, this is in fact just the appropriate time to plan a big investment, say on a 5-10 year time horizon".
Unlike most private companies for which bacassurance hovers between 25-35%, Kotak Life gets almost 50% of its premium from the bancassurance channel.
The company has chalked out five specific markets including Punjab, Haryana, Gujarat, Maharashtra and Kerala to tap the rural rich for selling specific insurance products.
Keeping in line with the expansion plans, the company also proposes to infuse additional capital in the next quarter.
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