The past year has been like no other in recent times and has posed unimaginable and unique challenges. These are uncertain times and our country, as also the rest of the world, has been confronted with unprecedented health, social and economic challenges. But there have also been many learnings and our organization has been working harder than ever before to mitigate various emerging risks with a view to protect the interests and future of our customers. This has been possible because of the relentless effort of our workforce who have shown tremendous resilience and adaptability to face the challenging circumstances.

During the past year, the global economy has slowed down with many economies coming to a standstill. India, the 5th largest economy in the world in terms of GDP, witnessed a record drop of 24.4% in its GDP in Q1, FY21. This was due to the complete lockdown imposed in India in April and May 2020. The month of June indicated some green shoots of revival in the Indian economy. It was estimated that India’s real GDP would rise to record a 11.0% growth in FY22 and that the nominal GDP would grow by 15.4% – the highest since independence. The return to normalcy has been accelerated by the initiation of a mega vaccination drive across the nation and India appears to be poised for a sharp economic upswing in FY22.

The pandemic has brought disruption across almost every sector and each industry has adapted to the challenge in its own manner. Although India is the 10th largest life insurance market worldwide, these numbers are growing in recent times, owing to rising levels of awareness about insurance among the Indian population. When the COVID-19 pandemic arrived in India, it initially slowed down the positive trends seen earlier. Life insurance businesses were hit hard while consumer behaviour indicated a paradigm shift. The insurance companies recorded contraction in new business premiums in Q1 of the FY21 with major stocks indices trading at year-to-date lows. However, the pandemic brought forth a structural transformation in consumer behaviour as people became more aware of the importance of insurance in protecting their future. As the year went by, the industry picked up momentum with consumer behaviour shifting sharply and permanently, seeing insurance as an essential spend.

The Indian insurance industry has taken a growth approach by catering to the customers through new and innovative service-based models and innovative solutions. The Indian demography is one of the largest young population nations with median age of 28 years and a rising share in urbanization with growth in urban population at 2.4% CAGR between FY15 and FY20. Insurance companies have therefore modified their products to cover a wider range of risks, ranging from the pandemic to seasonal illnesses which come at varying prices and cater to a wider range of demography. Along with this, standard products are expected to regain their popularity in the coming year as the various medical issues caused by the pandemic and the sharp hike in the costs of treatment have compelled consumers to accord greater priority to insurance. Digitalization has also contributed significantly to the growth of this industry as the products and services continued to be available on the digital platform during the lockdown. Capitalising on the opportunity created by the changing consumer mindset, insurers are investing in product innovation and customization, enhancing digitalization, providing agile teams and dynamic work processes to facilitate value-added services to customers.

We are pleased to report another year of robust performance and maintaining our position as the leader among private players. We continue to be one of the most trusted life insurance companies in India and deliver a gamut of products and services in the remotest corners in the life insurance and pension segment. Our performance in FY21 has been driven with a focus on risk-calibrated profitable growth. We have been able to generate sustainable and stable growth in business through a robust framework of risk management practices. Our GWP crossed the `500 billion mark and the value of New Business grew by 16% to `23.34 billion. Our Indian Embedded Value (IEV) grew by 27% to reach `333.86 billion. Our steady and persistent growth helped to exceed the `2 trillion mark for AUM during this fiscal year.

While the world stayed indoors during the past year, the windows of connectivity were opened by rapid digitalization. Technology and enhanced digital connectivity facilitated transactions without requiring physical presence. Technological focus has enabled us to continue our operations seamlessly through a virtual mode and provide uninterrupted service to our customers. Further, digitalization has helped us improve our service while becoming a more cost-effective way of doing transactions. Our processes have become smarter with implementation of Artificial Intelligence (AI) based solutions providing enriched experiences for our customers. The premium collected from online channels and web aggregators saw a 12.0% increase. The SBI YONO app has provided a convenient platform for our customers while helping us understand their needs better. Digitalization is the way ahead and we plan to invest more in technology to enhance our capabilities to serve our customers more effectively.

As we navigate our lives and adapt to the changing situations brought forth by the pandemic, SBI Life is committed to stand by its employees and make our workspace more safe and secure.