Operating Context
India's life insurance industry presents compelling growth opportunities driven by factors such as robust economic growth prospects, under-penetration, demographic dividends and urbanisation. As we navigate this dynamic landscape, we explore the key drivers and structural advantages to capitalise on the opportunities while managing risks effectively to maintain our leading position in the industry and create value for stakeholders.
Capitalising on India's growth prospects and nurturing financial well-being
India’s medium- and long-term outlook is positive, with an expected average annual real GDP growth of 6.7% between 2022 and 2032, making India the fastest growing G20 economy over the next decade. It is forecasted that the per capita GDP will nearly double in the said period. With the strong growth potential, a healthy external debt to GDP and high foreign exchange (FX) reserves will create a favourable environment for the industry's expansion and progress.
Our approach: At SBI Life, we are well-positioned to capitalise on emerging opportunities in the life insurance industry by expanding our distribution channels, enhancing customer engagement, and investing in advanced technology infrastructure.
Distributors added during the year under review
Harnessing demographic dividends
India's vibrant population, particularly within the age group of 25-64, serves as a catalyst for the life insurance industry's sustained expansion, providing a favourable environment for long-term growth and prosperity.
Our approach: Realising the immense potential that
India’s demographic mix and growing population,
we have established strategic partnerships with
Pan-India focused channels and enhanced our digital
platforms to cater to the evolving preferences of
customers.
As part of our expansion efforts, we have opened
40 new offices and forged new tie-ups with esteemed
institutions such as Karur Vyasa Bank, India Post
Payment Bank and Paschim Banga Gramin Bank,
enabling us to reach a wider customer base and
provide enhanced services.
New offices added during the year under review
Bridging the under-penetration gap
India's life insurance sector, despite being among the largest globally, continues to witness significant under-penetration.
Our approach: SBI Life proactively addresses the under-penetration gap through targeted awareness campaigns, education programmes and simplified product offerings. Our dedicated salesforce and digital initiatives ensure accessibility and ease of purchasing insurance, enabling us to penetrate deeper into untapped markets and extend financial protection to a larger population.
Varied products to cater different life stages needs of customers
New products launched during the year
Growing demand for protection
As disposable incomes rise and awareness of financial security grows, the demand for comprehensive protection products has been growing and is expected to grow in the coming years.
Our approach: To meet this growing demand, we have been innovating and expanding our product portfolio consistently, offering a wide range of comprehensive protection plans that address specific risks and provide financial security to individuals and families. Through customer-centric initiatives and seamless claim settlement processes, we ensure that our customers experience the utmost peace of mind.
Growth in total new business sum-assured
Overall claim settlement ratio (Individual+Group)
Embracing retirement solutions for future security
As life expectancy improves due to advancements in medical science, the need for robust retirement solutions becomes crucial. In addition, the government’s thrust on retirement planning and increased commutation of pension corpus, create a favourable environment for life insurers to provide comprehensive retirement solutions.
Our approach: We understand the evolving retirement needs of individuals and offer a diverse range of annuities and pension-based products. We continually enhance our retirement solutions to provide income stability and financial security during the post-retirement phase.
