Whalesbook
Amidst global uncertainty and volatile markets, demand for insurance, particularly protection and guaranteed products, remains robust. Anuj Mathur, MD and CEO of Canara HSBC Life Insurance, observed a significant increase in customer preference for stability and long-term financial security. This trend is partly driven by the current interest rate environment, making guaranteed products attractive for locking in consistent returns.
Shift Towards Protection and Guaranteed Products
Canara HSBC Life Insurance has seen its protection business double, indicating a growing customer focus on safeguarding against unforeseen events. Annuity products are also gaining traction as people recognize the importance of securing lifelong financial stability through retirement planning. Traditional products offering guaranteed returns made up nearly 80% of the company's individual APE mix in January-March, a notable increase from earlier months when Unit Linked Insurance Plans (ULIPs) were more dominant.
Expansion and New Avenues
To capture this growing demand, Canara HSBC Life Insurance is expanding into tier-3 and tier-4 cities to reach first-time insurance buyers. The company also sees long-term potential in dollar-denominated insurance products via GIFT City. These are targeted at Non-Resident Indians (NRIs) as a hedge against rupee depreciation and at resident Indians seeking overseas investment or hedging against future foreign currency liabilities like education expenses.
Agency Channel and Bima Sugam
The company is investing in its agency channel, launched last October, which is growing rapidly. Plans are underway to scale this channel by expanding distribution networks and opening more branches. Mathur views the upcoming Bima Sugam platform positively, expecting it to boost transparency and customer access to standardized protection products. He believes companies like Canara HSBC Life, with competitive products and efficient cost structures, can leverage Bima Sugam for growth by offering competitive pricing through cost efficiencies.