SBI Life Insurance Company Ltd Directors Report.


The Members of

SBI Life Insurance Company Limited

The Directors are pleased to present the 21st Annual Report of SBI Life Insurance Company Limited ("SBI Life" or "the Company") along with the audited financial statements for the financial year ended March 31, 2021.


The summary of the financial performance of the Company for FY 2021 is presented below:

(Rs. in billion)

Particulars FY 2021 FY 2020
A. Financial Parameters:
Gross Written Premium (GWP) 502.54 406.35
- New Business Premium (NBP) 206.24 165.92
- Renewal Premium (RP) 296.30 240.42
Profit / (Loss) before taxation 16.40 17.90
Provision for taxation 1.84 3.68
Profit / (Loss) after taxation 14.56 14.22
Profit at the beginning of the year 78.82 64.60
Total profit available for appropriation 93.38 78.82
Interim dividend 2.50 -
Profit carried to the balance sheet 90.88 78.82
Earnings per equity share (EPS)
- Basic (in Rs.) 14.56 14.22
- Diluted (in Rs.) 14.55 14.22
Net worth 104.00 87.42
B. Business Parameters:
Indian Embedded Value (IEV) 333.86 262.91
Annualized Premium Equivalent (APE) 114.48 107.37
Value of New Business (VoNB) 23.34 20.12
New Business Margin (VoNB Margin) 20.4% 18.7%
Assets under Management (AUM) 2,208.71 1,603.63
Individual Rated Premium (IRP) 102.23 97.72
Total Protection NBP (Individual + Group) 24.59 20.82
Total Protection NBP Share 11.9% 12.5%
NBP Product mix (%) (Par/Non Par/ULIP) 5/54/41 7/44/49
NBP Channel mix (%) (Banca/Agency/Others) 56/17/27 60/20/20
Operating expense ratio 4.8% 5.9%
Commission ratio$ 3.5% 4.0%
Total cost ratio* 8.3% 9.9%
Solvency ratio 2.15 1.95
Persistency ratio (13th month on premium basis) 87.92% 86.14%
Persistency ratio (61st month on premium basis) 61.63% 59.90%
Number of new policies issued (in 000s) 1,656.89 1,551.86

$ Commission ratio = Commission (including rewards) / Gross Written Premium (GWP)

* Total Cost = Operating expenses + Commission + Provision for doubtful debt + Bad debts written off


The Company witnessed a growth and consistent performance in FY 2021. The key financial parameters of the Company are as follows: New Business Premium (NBP) has increased by 24% from Rs. 165.92 billion in FY 2020 to 206.24 billion in FY 2021. Individual Rated premium (IRP) has increased by 5% from Rs. 97.72 billion in FY 2020 to Rs. 102.23 billion in FY 2021 with private market share of 22.6%.

Total protection new business premium has increased by 18% from Rs. 20.82 billion in FY 2020 to Rs. 24.59 billion in FY 2021.

Individual protection business has increased by 40% to Rs. 7.42 billion in FY 2021 from Rs. 5.29 billion in FY 2020.

APE has increased by 7% to Rs. 114.48 billion over previous year.

GWP has increased by 24% to Rs. 502.54 billion primarily due to increase in renewal premium by 23% from Rs. 240.42 billion to Rs. 296.30 billion and a significant increase in individual single premium by 55% from 16.37 billion to Rs. 25.29 billion. The Companys profit after tax grew to Rs. 14.56 billion in FY 2021 from Rs. 14.22 billion in FY 2020. The operating expense ratio (Operating Expense to GWP) stands at 4.8% in FY 2021 as against 5.9% in FY 2020.

AUM has grown by 38% from Rs. 1,603.63 billion as of March 31, 2020 to Rs. 2,208.71 billion as of March 31, 2021 with debt-equity mix of 73:27. Solvency ratio of the Company stands at 2.15 as against the regulatory requirement of 1.50 indicating the strong & stable financial health of the Company.

The 13th month persistency ratio (based on premium) improved by 178 bps to 87.92% in FY 2021 from 86.14% in FY 2020 and 61st month persistency ratio (based on premium) improved by 173 bps to 61.63% in FY 2021 from 59.90% in FY 2020.

Indian Embedded Value of the Company stands at Rs. 333.86 billion, as on March 31, 2021 as compared to Rs. 262.91 billion as on March 31, 2020.

Value of New Business grew by 16% from Rs. 20.12 billion to Rs. 23.34 billion in FY 2021 leading to an increase in value of new business margin from 18.7% to 20.4% in FY 2021.

Distribution reach

The Company, with a view to increase the market share and serving underpenetrated market, continues to emphasise on the expansion of its distribution reach through opening up of new offices, quality recruitments and new business partnerships. As at March 31, 2021, the Company has 947 offices, 170,096 Insurance Advisors (IAs) and 50,240 Certified Insurance Facilitators (CIFs) across the country as against 937 offices, 130,418 IAs and 53,096 CIFs as on March 31, 2020.

The Company had obtained necessary regulatory approvals from IRDAI and Central Bank of Bahrain

(CBB) for opening branch office in Kingdom of Bahrain to conduct life insurance business. The Board in its meeting held on January 22, 2020 have resolved to surrender the Certificate of Commencement issued by the Central Bank of Bahrain (CBB) and to withdraw all the resources of the Company in accordance to the applicable laws. During the year ended March 31, 2021, the Company has surrendered the Certificate of Commencement and Insurance license issued by CBB for branch office in Kingdom of Bahrain and withdrawn all the resources of the Company from Bahrain branch.

Distribution Mix

During the year, the Company collected New Business Premium of Rs. 206.24 billion, comprising of Rs. 114.78 billion from ‘Bancassurance which represents companys largest distribution network, Rs. 35.50 billion from Retail Agency and Rs. 55.96 billion from other distribution channel which includes direct sales, sales by non-bancassurance corporate agents, brokers, micro agents, common service centres (CSC), insurance marketing firms (IMFs) and Web aggregators.

The Companys direct sales primarily comprise sale of group products, as well as standardised individual products sold through online offerings.


The COVID-19 pandemic has taken more than a million lives as the toll continues to rise. Many countries are witnessing their second and third waves. During such times, there was an urgent need for lifting of trade restrictions on medical goods & services, financial assistance for vulnerable economies to cope with the impact and get back to some sort of recovery. Recent data has suggested that the global economy is slowly on the recovery path, after the great lockdown in the first half of the fiscal year. The swift regulatory and monetary policies have enabled the GDP recovery in the subsequent half of the year.

As the world continues on the path of recovery from the pandemic, India witnessed a tremendous contraction in GDP of 24.4% in the 1st quarter of this financial year. This contraction was bound to occur on account of complete lockdown across the entire country. The 2nd quarter of the year witnessed recovery with the GDP contraction reducing to 7.5%. The real GDP growth rate for FY 2021-22 is estimated to be 11% which would be supported by the mass vaccination of the huge population, increase in consumptions and various stimulus packages by the Government. There was great uncertainty due to the pandemic but as we begin recovery from the same, insurance industry has demonstrated strong recovery. Further, innovation and technology continues to help the industry to cope up with the evolved needs of the stakeholders The global life insurance market grew by 2.2% in 2019 with premium collection of USD 2,916 billion. As regards the Indian markets, the Total Rated Premium of the life insurance industry was reduced by 14% Y-o-Y. As regards the Individual Rated Premium, there was a marginal increase of 3% from Rs. 734.88 billion in FY 2019-20 to Rs. 756.58 billion in FY 2020-21. Thus, the industry is witnessing traction and expects to growth in the future.

Key challenges are listed below:

Second wave and a possible third wave of COVID-19:

Our country is already into the second wave, which has caused more disruption to health and economic activities. Currently, the biggest challenge is to cope up with the opening up of all the activities and curbing further spread of virus at the same time as this is going to be difficult to find the right balance. The first lockdown has caused considerable damage to the economy and with the country already into the second wave, and a possible third wave, the recovery seems difficult.

Low consumption levels threaten to slow down any possible recovery of the economy. The best possible solution, which is vaccination of the entire population is also such a challenging task with the countrys population and lack of proper distribution system. All these factors would determine the revival of the economy and its impact on life insurance industry.


With the need to provide Work from Home (WFH) facilities to employees, the Company faces the risk of cyber-crime. It is important for an organisation to understand that cyber-security is very crucial in such times. During the lockdown, cyber-attacks have increased manifold. Thus, one of the biggest threats to the Company is the possibility of cyber-crimes, which may cause significant and irreparable damage. Thus, there is an utmost need of secure networks and stringent security of our IT assets to ensure safety.

Rising customer expectations:

With the increasing competition and use of technology in insurance business, the customer expectations has been on the rise. Creating unique and personalized customer experiences has been a priority for many years, indicating that many companies are still playing catch-up and remain vulnerable to non-traditional players. Thus, better customer experiences have been a priority for years — and will remain one for the foreseeable future.

Regulatory update:

Regulatory instructions/relaxations related to COVID-19

In order to ensure safety of the employees, agents and policyholders of insurers and to protect the interest of policyholders in the current pandemic situation and lockdown caused due to COVID-19, IRDAI issued various circulars and directions to insurers providing relaxations pertaining to: extension of free look period, grace period and settlement options for maturity pay-out in ULIPs. Issuance of insurance policy electronically Issuance of e-Certificate of Insurance under Group Insurance Policies Dispensing with physical signatures on proposal form Facilitation for COVID-19 vaccination for the policyholders, employees and agents and create awareness about vaccination., IRDAI has issued guidelines on COVID Standard benefit based health policy and mandated all insurers to launch a standard short term health insurance policy to specifically cover COVID – 19 diseases. The Company has launched SBI Life - Corona Rakshak, product in compliance with the regulatory directions.

IRDAI (Minimum Information Required for Investigation and Inspection) Regulations

IRDAI has issued regulations to specify the minimum information and records to be maintained by the insurers, intermediaries and insurance intermediaries in order to enable IRDAIs investigating officer undertake his/her duties and functions in accordance with Section 33 of the Insurance Act 1938.

Maintain the physical and electronic records and destruction of old records as per the Board approved policy in this regard.

Records shall be maintained for 10 years (12 years for claim records) or as per extant regulatory requirements, whichever is later, from the date of last transaction / expiry of the policy.

Video Based Identification Process (VBIP)

IRDAI has permitted Life and General insurers to carry out "Video Based Identification Process" ("VBIP") as an alternative consent based process of customer identification/KYC in a paperless, secure, real-time basis for the purpose of customer due diligence.

Standard Pure Term and Individual Immediate Annuity product

To bring uniformity in insuranceproduct offering across insurers with simple features and standard terms and conditions with identical product parameters, policy documents and terms and conditions IRDAI has notified Guidelines for standard individual term life insurance product, with named as "Saral Jeevan Bima, and Standard Individual Immediate Annuity Product, Saral Pension". All Life insurers are required to mandatorily offer this product.

Increase in FDI in Insurance Sector:

With notification of Insurance (Amendment) Act 2021 limit of foreign investment including portfolio investment increased from 49% to 74% in Insurance sector.

4. COVID 19

The COVID-19 pandemic has led to a great loss of human life worldwide and presents an unprecedented challenge to public health, food systems and the world of work. The economic and social disruption caused by the pandemic is devastating. The Company has responded swiftly to the pandemic, while ensuring business continuity along with safety and security of all the stakeholders. Listed below are the various measures undertaken by the Company.

Business Continuity Plan

The impact of COVID-19 pandemic was felt across the entire country and across all economic sectors. In initial stage, the Company responded actively and promptly with the Business Continuity Plan (BCP) to enable operations to run with minimal disruptions. With the onset of the lockdowns, the Company made a quick transition to Work from home (WFH), also ensuring secure connections for data safety. The Company also continued to deliver to its customers by providing 24x7 availability through our digital platforms.

Work from Home & Employee Safety

In this extra-ordinary year, we continued to stay focused on safety, health and wellbeing of our employees while they were providing essential services to people across the country. We were able to respond swiftly to the ever changing situation and ensure continued availability of services to our customers by embracing technology & acclimatizing to the new normal, while keeping employee safety as our topmost priority. We started with extending work from home facility to critical resources which was subsequently extended to all employees.

Some of the employee centred initiatives taken during the FY were coverage of Covid-19 expenses for tele-consultation services, diagnostic tests, medicines, ambulance charges, hospitalization expenses etc for employees as well as their dependent family members. We also extended facility of special leave to employees in case they or their family members tested positive for Covid-19. Frequent health and wellness sessions were conducted online for employees and their families providing a platform to connect with the experts to address their concerns.

Opening up

After the announcement of staggered unlock by the Government, the Company ensured strict compliance with the guidelines. Temperature checks, maintaining rosters, tracing and physical distancing was strictly complied with the opening of offices.

Customer focus and engagement

The Company continued to communicate with its existing customers to make them aware of services that they can avail and ensure continuous customer engagement. Post gradual unlock by the government, the Company was able to scale up the operations with the help of the vast network of various distributors. The Companys robust digital platform enabled our distributors to connect with customers digitally to enable sale of new policies.

Risk Assessment

Covid-19 virus continues to spread across the globe including India, resulting in significant impact on global and Indias economic environment including volatility in the capital markets. The company has assessed the impact of the pandemic and has made additional provision of Rs. 183 Cr. Covid-19 impact is still evolving and there is uncertainty regarding the future impact. Company is well capitalised and maintains a healthy solvency ratio of 215% as at 31st March 2021. The Company will continue to closely monitor any future developments in this regard.

Stricter underwriting and enhanced medical examinations are undertaken in view of the current situation so as to mitigate the risk of covering sub-standard lives. The investment policy of the Company is to widely diversify the investments into Government Securities, Bonds & Debentures, Equity Shares, Money Market Instruments, Fixed Deposits, etc. A majority of the investments of the Company are in large cap Nifty 50 Index stocks, sovereign and AAA rated securities. We have evaluated and understand that there is no exposure to industries which will materially affected us because of the pandemic. The Company assesses the impact of Covid-19 prior to investing.

The Company has a robust Business Continuity Management(BCM)which has helped it in successfully managing the pandemic. All critical activities were successfully done on ‘Work from Home (WFH) basis. Adequate number from WFH connections ensured that the Company could carry out the year end activities (including statutory audit and announcing the financial results) on a timely basis. All statutory filings were done within the timelines specified by the relevant authority / regulations.

The Company made adequate arrangements for servicing of customers. Routine operations including logging in new business proposals, issuance of policies, collection of renewal premiums, processing & payout of survival / maturity benefits and settlement of death claims are being carried out. Salary to employees, commission to intermediaries & vendor invoices are being processed and payouts being released in a timely manner.

Adequate measures in terms of sanitizing all offices, vaccinating employees & outsourced staff and closing / opening of offices are done in line with Local, State & Central Government prescriptions. Requisite Information security measures and sensitization of all employees in light of WFH is being done regularly.

Future outlook

It has been more than a year now, since the COVID-19 outbreak and still all businesses are facing the hardships. The second wave of COVID-19 in India continues to affect the economy adversely. However, with the roll-out of vaccination drive, we are hopeful that the impact of COVID-19 would gradually decline. The Company will continue to closely monitor any further developments relating to COVID-19 which may have any impact on the business and financial statements.


IRDAI vide its circular no. IRDAI/F&A/CIR/MISC/ 099/04/2020 dated April 24, 2020 on prudent management of financial resources of insurers in context of COVID-19 Pandemic, had urged all insurers to take a conscious call to refrain from dividend pay-out from profits pertaining to FY ending March 31, 2020 till further instructions.

IRDAI subsequently vide its circular no. IRDAI/F&A/ CIR/MISC/032/02/2021 dated February 25, 2021 on prudent management of financial resources of insurers in context of COVID-19 pandemic has withdrawn the applicability of its erstwhile circular no. IRDAI/F&A/CIR/MISC/099/04/2020 dated April 24, 2020 with immediate effect post assessment of financial results of the insurers for the quarter ended September 30, 2020 and December 31, 2020. However, the Authority has directed the insurers to take conscious call in matter of declaring dividend for FY 2020-21 considering the capital, solvency and liquidity positions. The Companys profit after tax stands at 14.56 billion in FY 2021 as against

Rs. 14.22 billion in FY 2020. The Company has carried forward Rs. 12.06 billion to its Reserves and Surplus, and had accumulated balance of Rs. 90.88 billion as on March 31, 2021. The Company has a solvency ratio of 2.15 as at March 31, 2021 as against regulatory mandate of 1.50.

The Board of Directors of the Company at its meeting held on March 25th 2021 has declared an interim dividend of Rs. 2.50 per equity share of the face value of Rs. 10 each @ 25% during the year (previous year

Nil per equity share of the face value of Rs. 10 each) after considering the capital, liquidity and solvency position of the company in accordance IRDAI no. IRDAI/F&A/CIR/MISC/032/02/2021 dated February 25, 2021 and dividend distribution policy of the Company. The total interim dividend pay-out amounts to Rs. 2.50 billion. No final dividend is recommended for the year ended March 31, 2021 and the said interim dividend declared is to be confirmed as final dividend.

In terms of Regulation 43A of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") the Dividend Distribution Policy of the Company is disclosed on the website The Company has uploaded the details of unpaid and unclaimeddividendontheCompanyswebsite:https://


During the year there was no fresh capital infusion by the promoters in the Company. The authorized share capital and paid up share capital of the Company stands at Rs. 20.00 billion and Rs. 10.00 billion respectively. The shareholding pattern during the year under review is in compliance with the statutory requirement. The shareholding pattern is provided as a part of Form No. MGT-9 which is annexed to this Report and under Schedule – 5A which forms part of the Financial Statement.

During the year, State Bank of India (Promoter) has sold 2.1% stake i.e. 21,000,000 equity shares of Rs. 10 each at an average price of Rs. 744.05 per share for a consideration of Rs. 15.63 billion. BNP Paribas Cardif S.A. (Promoter) has sold 4.99% stake i.e. 50,003,480 equity shares of Rs. 10 each at an average price of Rs. 911.28 per share for a consideration of Rs. 45.57 billion.

During the year ended March 31, 2021, the Company has allotted 44,613 equity shares of Rs. 10 each pursuant to exercise of stock options by the eligible employees. This allotment has resulted in increase in paid-up equity share capital by Rs. 446 thousands and securities premium by Rs. 26,072 thousands.


During the year under review, the Company has not accepted any deposits from the public as per Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014 (as amended).


Equity share of SBI Life Insurance Company has been included in Benchmark Index of NSE i.e. NIFTY 50 from September 25,2020.


The Company has received various awards during the year across brand management, technology etc. Brief highlight of some of the major awards are mentioned below: SBI Life has won ‘Silver Award under the category of "CSR COVID Relief Project" at the 4thCSR Health Impact Awards 2020 SBI Life won the ‘Insurer of the Year- Life Category award at The Insurance Industry Awards 2020 by FICCI

SBI Life won a ‘Silver for ‘Real Life Real Stories featuring Suyash Jadhav for ‘Best Use of Video at the Shark Awards 2020 SBI Life won a ‘Silver for ‘Real Life Real Stories featuring Suyash Jadhav for ‘Best Branded Content at the Brandwagon ACE Awards 2020 SBI Life won a ‘Gold for ‘Real Life Real Stories featuring Suyash Jadhav at Campaign India Digital Crest Awards SBI Life won ‘Silver under Digital Technologies by SKOCH Award for CKYC, Offline KYC and ASP Process Integration initiatives SBI Life won ‘Gold honour at DIGIXX Awards 2021 for Digital Marketing Excellence for M.Connect Life in the Technology (sales platform) category SBI Life awarded ‘Gold honour in Editors Choice for ‘Customer Orientation in Life Insurance at 20th Outlook Money Awards 2020.

As we work to deliver performance with purpose, we are proud that numerous organisations have recognised our efforts and achievements. These awards demonstrate the Companys commitment to achieve excellence, across all spheres of its activities and operations.


SBI Life has a wide range of products catering to various customer needs in the life, health, pension & micro-insurance segments. These products are customer centric, simple to understand and have competitive features.

To maintain its competitive edge in the market, the Company has reviewed and modified six existing products (Five individual products and One group product) during FY 2021. The products pertaining to various categories which were modified and launched are as given below:

1) SBI Life – Smart Samriddhi

2) SBI Life – Smart Platina Assure

3) SBI Life – Annuity Plus

4) SBI Life – Swarna Jeevan

5) SBI Life – Poorna Suraksha

6) SBI Life – Sampoorn Cancer Suraksha

The product SBI Life – Smart Samriddhi was modified post the IRDAI (Insurance) Product Regulations, 2019 and to reduce the minimum premium under the product.

The products SBI Life – Smart Platina Assure, SBI Life – Annuity Plus and SBI Life – Swarna Jeevan were modified in view of the changing interest rate scenario and to accommodate market demand. The products SBI Life – Poorna Suraksha and SBI Life – Sampoorn Cancer Suraksha were modified in line with IRDAI Master Circular on Standardization of Health Insurance Products, 2020.

Considering the market demand, the Company has launched four new products during FY 2021 as follows

1) SBI Life – Smart Future Choices

2) SBI Life – New Smart Samriddhi

3) Corona Rakshak Policy, SBI Life Insurance Company Limited

4) SBI Life – Saral Jeevan Bima

SBI Life – Saral Jeevan Bima product has been launched as per IRDAI guidelines on Standard Individual Term Life Insurance Product 2020. On the launching of this product, the existing individual term insurance product SBI Life- Saral Shield was withdrawn from the market.


During the year under review, the Company has been in a position to handle a total volume of 16.56 lacs Individual New business policies, 106.57 lakhs new lives under group polices and total New business Premiums of Rs. 206.24 billion, resulting in an increase of 24% in New Business Premium. Apart from this, the Company has also managed to collect Renewal Premium of Rs. 296.30 billion, showing an increase of 23% in Renewal Premium Business. During the year, the Company has made policy payout (net of reinsurance) of Rs. 214.93 billion to individual policy holders and the group master policy members We effectively organised and responded to crisis situation created by the outbreak of Covid-19 pandemic. During the pandemic period, the Company adopted various digital initiatives / strategies for end-to-end digital customer on-boarding to customer servicing. Customer experience has taken a new meaning against this backdrop. While working towards raising the bar in ‘End-to-End digital services, the Company has also ensured the health & safety of its stakeholders viz. Customers, Distributors, Employees and Business Partners.

With the help of newer technologies like Artificial Intelligence (AI) and Machine Learning (ML) capabilities, we have implemented the automation of high-volume and repeatable tasks. Further, Robotic Process Automation (RPA) helping in scalability in the long - run and to reduces the cycle time for processing of activities while keeping in mind error-free delivery. The introduction of Robotics has given a major boost to process automation and has the power to replicate human tasks without affecting the underlying systems.

Moreover, with an expeditious online Claims processing system in place, we have attempted to provide pragmatic help to customers in financial distress. Keeping in mind the situation and the substantial demand for digital servicing, the shift to online and digital servicing channels has proven effective in the day-to-day functioning of our organisation.

The snapshot of various activities undertaken by various departments under the overall Operations Business Unit, which are highlighted below: The list of activities executed by the Company which benefitted more than one department in the Operations team are as below:

Robotic Process Automation (RPA):

Robotic process automation (RPA) is an emerging form of business process automation technology based on the notion of software robots. It uses software with artificial intelligence (AI) and machine learning (ML) capabilities to handle high-volume and repeatable tasks. RPA helps in scalability in the long run and also helps in decreasing the cycle time for processing of activities. Robots can replicate human tasks without affecting the underlying systems; this can lead to manifold increase in productivity levels without a corresponding increase in manpower budgets. Depending on the requirements on the process, robotics can help in making processes run 24x7x365, resulting in increased stakeholder satisfaction and service availability for customers. Under this project, currently, 25 processes in operations with a high ROI (Return over Investment) were taken up for automation in FY 2021.

Smart Care: (Customer Engagement app.)

The ‘Smart Care has been developed with the objective of re-defining the digital servicing experience of our policyholders as well as prospective clients, keeping in mind the expectations of the present-day users with digital platforms. The Progressive Web Application (PWA) platform makers this Smart Care application device agnostic; it provides the user with seamless experience and to have the same functionalities and experience on any device ranging from mobile to web applications. The user interface developed is very user friendly and has many features that will help engage the user right from choosing the right insurance up to maturity / claim settlement) of the policy. A host of self-servicing options also have been provided that will enable the user to transact on their policy at the click of a button with minimum dependency. The beta version of the application was launched on 3rd February, 2021.

Leveraging IIBI information in risk evaluation:

Insurance Information Bureau of India (IIBI) maintains a central repository of life insurance policies of participating insurance companies. The participating insurers get the facility to raise query on this entire database. It is particularly used at the time of New Business Underwriting and also during Claims assessment as it helps in getting all the information in respect of the insurance policies held by the Proposer / Life Assured taken from other insurance companies. Other information, such as whether any of the LAs proposals was ever declined / accepted with extra rating etc., by other companies is also made available. This information proves very vital in detecting various Non-disclosures / claim frauds. This also helping the Company to take the right Underwriting decisions with proper pricing.

SBIL was the first Company to have an API Integration with IIBI wherein this information is received by us directly on real time basis, as and when we raise query for vital information on proposer / life assured.

Customer On-boarding experience:

New Business Department is pivotal in ensuring a smooth on-boarding experience to the customers as well as sourcing partners. The initiatives taken throughout the year are focussed on improving the customer on-boarding experience through improving the processes thereby leading to faster issuance, digitization and better communication.

Introduction of Alternate Sales Process -

With the outbreak of Covid-19, the traditional form of customer interaction and business sourcing was no longer possible. This gave impetus to development of Alternate Sales Process (ASP) on MConnect for uninterrupted customer on boarding through Digital platform. With the launch of ASP process, the entire on boarding journey became ‘Paperless – Penless, wherein no documents were required to be provided by the customer towards KYC or signature verification. This has been achieved through two digital KYC options introduced in MConnect i.e. ASP eKYC (OTP based Aadhaar verification process) and ASP Video KYC (Video based verification process).

With the implementation of ASP process, we have been able to completely eliminate the need to submit physical documents or the movement of physical document across offices. Further, we have also been able to create a complete digital ecosystem for the on boarding process.

NPS Online -

Your Company has introduced a digital onboarding module specifically for onboarding of NPS (National Pension System) Proposals. ‘Parivartan in NPS has levered SBI Life to a leading position in Private insurance sector and has made life easy for all stakeholders. Improved service standards, removal of manual activities such as data entry and logistics, faster issuance TAT reduction in cost to Company are other important benefits of Parivartan.

Automation of Excess Deposit Refund - One of the important parameters of PPI (Protection of Policy Holder Interest) guideline is to refund any Excess Deposit paid by customer towards the policy within a stipulated TAT. We have moved to a complete seamless movement integration of various systems like Ingenium (our Policy Management System) & I Pay (Integrated Payment module). This has resulted in faster payouts with less of manual intervention and efforts thereby enabling the Company to better adherence to PPI guidelines and other Regulatory provisions.

Introduction of Customer Services on WhatsApp -

SBI Life has introduced various Push Services on WhatsApp platform. We have now introduced a concept of "Service on Demand" wherein information will be imparted to the customer on request by the customer on WhatsApp. With the help of these services, we have empowered the customer to get information as per their needs and convenience by maintain all the required security and safety of the same. Various New Business services such as Proposal Status, Shortage link and Soft Copy of Policy Document have already been made live under this category Email ID verification -

Email Id is one of the most critical contact details shared by the customer taking into consideration the substantial number of communications sent to customers through email. Hence, it is critical to ensure that the email Id as shared by the customer is correct and it pertains to the proposer. In order to facilitate the capturing and storing of correct email Id, Company initiated email Id verification process, wherein the customer verifies the correctness of the email Id mentioned in the proposal form. This in turn will help to ensure that communication is sent to customers on correct email ids for posterity.

Real Time Bank Account Verification in Workflow -

Capturing and storing of correct bank account details of the client is of utmost importance as these bank account details are used for making various payouts to customers. Hence, it is critical to ensure that the account details being captured at the time of proposal on boarding are authentic, still valid and also pertain to the customer, for which Penny Drop service has been implemented. This service helps to verify the authenticity of the customers bank account number mentioned in the proposal. This gives your Company the confidence that the amount due to the customer has been credited to the correct account and that the customer receives the amount on time.

Implementation of Realtime services- Dedupe and Rural Services Mapping -

Your Company has appointed a vendor who has a software with the ability to match the details of any new business proposer with our existing client database and provide us different matches with the probability of the matching.

Apart from the dedupe service, another service has been integrated to identify whether policy - holder pertains to Rural or Urban area. An algorithm developed for all the new cases issued the service maps the cases as Rural or Urban based on the communication address of the customer against Census data of 2011 on a real time basis. This helps us in submitting the details of Rural Policies to IRDAI, to ensure submission of the IRDAI Rural Regulation.

Underwriting process simplification:

In view of the pandemic situation, Work From Home (WFH) was the only mantra for business continuity. The WFH facility was not only required for company employees but for vendors also. There was need to build fool-proof systems to facilitate processing of various business activities. The processes were revisited with an aim to ensure business continuity. Also, the application is integrated with various external systems like CRIF, Credit bureau, IIBI, NSDL, vendors system and Ingenium (our Policy Management Systems). Seamless synchronization of systems was a critical task, which has been implemented, successfully resulting in a fully integrated Workflow system that is being used by various stakeholders. Described below are the major Digital Enablers and process changes your Company introduced in the Underwriting Department during the year under review. These were aimed at improving the overall process efficiency at the same time ensuring proper risk mitigation. The concept was improvised in accordance with the ideology of Digital Transformation and Customer oriented approach, aimed at reduction of issuance TAT, thus ensuring improved customer satisfaction.

Underwriting department played a key role in devising and implementation of Alternate Sales Process for On-Boarding of New Business Proposals.

Other Major Initiatives/process changes implemented in Underwriting Department are as follows:

UW Checks at sourcing - These aim at guiding the sales person on proposal quality with underwriting rules incorporated in mConnect through rule engine. Basic checks introduced on parameters including Occupation, Qualification, Age and Annual income, etc. For all eligible cases user can continue with proposal, which ensures minimal requirements and faster proposing / issuance.

Improved User Experience for Frontline Sales using OCR Technology -

Auto capture of data using Optical Character Recognition (OCR) technology has ensures higher accuracy, reduced manual data entry with improved accuracy.

Require management through Bitly link -

Requirements including Consent for Revised terms, various Questionnaires required for Underwriting purpose and Shortage received through bitly link. Pending requirements are being flagged through SMS bitly link to customers registered mobile number for Consent for extra premium, Shortage payment and various medical & non-medical questionnaires / requirements.

Digital Moral Hazzard Report: (eMHR / Short MHR/ MHR through BITLY Link – to be submitted by the sales intermediary) -

Captures detailed and meaningful information from the primary underwriter (front end sales intermediary) who at times is the only person to meet the customer thus maintaining authenticity, improving legibility, providing convenience to the issuing authority and ensuring that MHR is received from the correct authority.

Propagating Videography -

InVideographycertifiedThirdPartyAdministrators (TPA), technician conducts medicals through home visit. Equipped with ECG and medical kit for doing blood test, MER is conducted through video conference with doctors at Head Office of TPA. Benefits include Reduced TAT, Real time ECG verification to eliminating wrong ECGs, Transparency in medicals conducted and Reduction in fraudulent medicals.

Profile score Underwriting -

Parameters like age group, occupation, qualification, product type and other factors like Good persistency, Absence of Claims and fraud, Customer location, various rating agencies scores are considered. The model provides relaxed financial underwriting including reduced documentation. This has helped minimize requirements and improve AUTO underwriting percentage.

Online IMPS Bank Verification -

Online bank verification (Digitalized collection of bank account details) has been introduced in MConnect, which validates customer bank account details (Name, Bank Account number and IFSC code). On successful verification, the proposal would be processed without asking for documentary evidence for bank details.

Medical Grid Relaxation (in pandemic to Tele MER) -

In view of the pandemic situation and subsequent lockdown, medical business was impacted to a certain extent. Tele MER proved to be a quick resolution. In consultation with Reinsurers and Actuaries, full medicals were converted to Tele MER / Video MER. This has resulted in conversion of medical business with reduced TAT without compromising on the risk.

Volume Management -

Underwriting volumes were managed effectively by process changes, coordinating with Regional Underwriting Units (RUUs) and with vendors. Auto underwriting percentage plays a crucial role in management of volume and to maintain non-medical TAT, at desired level. The Auto underwriting percentage has been maintained around 42% to 45%. Various steps were taken by the Company to improve the auto-u/w percentage, which has later been improved and maintained at above level. This has helped the Company in managing the volumes well.

Policy holder services and customer retention:

Policy Servicing is a critical aspect of a policyholder journey with the Company as they gain several experiences during the policy. During the times of pandemic, it became outmost important to provide customers with digital servicing platforms for faster hassle-free services and also abiding to the new normal of social distancing.

Similarly, Renewals is an important function of the Company and this helps the Company to understand the quality of sales. It gives an insight into what the customer feels about the product, the Company and its services rendered. This is also an important parameter in assessing the persistency of the policies. This also gives the Company a view of how long the customer might stay with the Company and keep on paying their premiums regularly. 87.9% 13th month persistency and 61.6% of 61st month persistency is an exhibit of customer retention.

The Company has taken several steps to enhance customer experience in Policy Servicing and improve the Renewals thereby resulting in higher persistency of the policies. Longer the duration and good persistency of the policy creates great value for the customer, Company and shareholders. Major initiatives being given below:

Revival campaign – Customer Retention initiative: During the period under review, a very successful Revival Campaign was launched with the motive of reviving lapsed policies and rebuilding the relationship with our policyholders. Over 1 lakhs policies were revived leading to a renewal premium collection of Rs. 508 Cr. Strategic inputs generated through Renewal Analytics were utilized to identify likelihood of revival of any policy. Call centre engagement was done based on the Analytics by targeting the Likely

& Moderate bucket customer through specialized callers. This has helped the Company to improve the persistency. Higher rate of revivals has been made from 61st Month (19.75%), 49th Month (14.29%) and 13th Month (13.28%).

Digital Initiatives -

SBI Life Insurance Co Ltd. is steadily continuing its path of Digital transformation by adopting various Digital initiatives. The whole motive is to make the transition from Customer Satisfaction to Customer Delight. Our Digital Platforms are contributing towards making processes & services faster and automated. Listed below are some of the initiatives taken by the PS / Payouts and the Renewals Vertical during FY 2021. These initiatives were introduced for customers, both internal and external.

Digital Platforms for Policyholders: Easy Access -

Enhancements were made to the Easy Access App (Customer Engagement app) to enable customers to place requests for FLC, Partial Withdrawal, LTR Withdrawal, Correction in personal details. These requests are being authenticated using OTP and Geo Tagging of Location based verification.

Customer Self Service Portal – (CSSP)

Similarly, enhancements were made to the CSSP enabling the Customers to submit COVID and NRI questionnaire along with an e-DGH revival request. It should be noted that during FY 21, the Digital Transactions on our self-service portal increased by a staggering 124% compared to FY 20.

Smart Care App -

The latest customer app Smart Care, has been enabled with various functionalities to provide policyholders a digital platform to service his policies with SBI Life. They can create service requests, download quotes and forms, generate statements, pay premiums. On successful launch of the same the current Easy Access and CSSP will integrate into this app making this the only app for Customer engagement.

Missed Call Service was enabled for Customers -

When customer gives a missed call to the designated number, a payment link is sent to the customer depending on their policy status.

Mobile POS -

Premium collection through Cheque / DD is an effort oriented, time consuming process. Hence, your Company adopted the "mPOS" (Mobile Point of Sale) device for Renewal premium payments. mPOS is a portable point of sale which functions as a register, its an ideal way for businesses to take card payments on the go. Usage of the m-POS machine eliminates the need for Cheque / DD collections / submission to branch, manual cashiering, awaiting realization and chances of CDA of instrument. It is a real-time flow of transactions, auto-cashiering and realization. Selected IAs were given mPOS devices enabling them to collect premium on the go.

BBPS Online Payment -

In our continual effort to provide policyholders a base for making digital payments, SBI Life is on boarded as a Biller with NPCI for their popular bill payment service known as Bharat Bill Pay Services. This has opened up a platform for SBI Life to be able to collect premium through policyholders having their accounts with banking and non- banking institutions.

One Connect - A single page module is developed where the policyholder can view, update, verify his personal details, like email id, PAN, account number, register for CSS, auto-pay, demat, WhatsApp services. With the growing popularity and usage of WhatsApp for providing information / services to policyholders. We also broadened the scope of WhatsApp use by enabling the following functions - Sending Renewal intimation, Payout details to policyholders Enabling options for generating Premium Paid Certificates, Renewal Premium Receipts, TDS Certificate Using it as a medium to popularize various servicing options

Sales Digital Platforms -

Similarly, in order to disseminate information to sales team, we brought in further enablement in the Smart Advisor app (Sales Intermediary app) for Sales Monitoring of unrealized premium data and Sending e-Mandate link in addition to the existing feature of tracking unpaid dues. Further, integration of the SMS functionality was made for the Sales Intermediaries. Geolocation feature for Sales intermediaries was enabled - now Google Map is integrated in the mobile app, which shows Renewal dues details, location and distance-wise.

Assisted Digital servicing is introduced with collection of revival requests through Smart Advisor. LM / CIF can simply login to Smart Advisor and fill eDGH, Covid Q in the app, complete KYC, collect online premium and complete the revival initiation process under one umbrella.

Enhancing Process Efficiency -

Several projects have been conceptualized and developed in order to bring in efficiency in the current processes handled in SBI Life, keeping in mind both branches and CPC. Some of the important projects has been enumerated below: Revival Workflow: Development of revival workflow was completed and introduced done to bring in seamless revival of policy. Today we have multiple resources for receiving revival request - customer walk-in, sales request, online revival request. All such request has been brought on the common platform of processing the request. The rule-based workflow provides a better risk control on the requests received in a transparent manner.

Enhanced the scope and functionality of CRM module of SBI Life, to make it more informative, inclusion of straight through processing, workflow management. Robotics Process Automation (RPA) was successfully rolled out. The processes identified were repetitive manual tasks nature. We have been able to gain faster processing, better reconciliation, error free smoother monitoring in terms of flow of transactions.

Smart Advisor - Desktop Version -

Access was provided on the mobile platform to all users across the Regions. This was enabled during the initial phase of the Lockdown to help in remote servicing during WFH phase. It was enabled with the following functionalities The Renewal due list was updated and details were made available on this app. The granular data with regards to Persistency was made available. This platform was fully leveraged during the lockdown where our staff in the Region / Branches effortlessly switched to Renewal follow up through their Mobile Handsets.

Revival Campaign updates were made available on the Smart Advisor (Desktop Version).

Dashboards to display Digital Campaign Data (Region/HPC and Primary Branch wise) were made available.

Updating and view rights were made available in order to update the calling disposition and sub dispositions.

Different month-wise persistency for various channel were also updated for intermediaries.

Claims settlement – the ultimate customer service goal:

Claims management is at the heart of any insurance company. Today, when product offerings from Life insurance companies are similar in nature, efficient claim management can be one of the differentiator. Year 2020-21 had presented some unique challenges in the form of a pandemic, sudden lockdowns resulting in uneven claim intimations etc. FY 2021 also saw surge in total claim intimations under, both, Individual and Group Portfolio. Total claim intimation jumped by 40.66% as compared to FY 2019-20. Despite this surge, Total claims settlement for FY 2020-21 stood at healthy 96.1% and Individual claim settlement stood at 93.1%.

As far as Living Benefit Portfolio is concerned, your Company has processed highest ever payouts. Total Survival benefits transactions processing stood at 3.43 lakhs. In the year under review, the Company has also processed another 2.17 lakh policies for maturity payout. Payout involved in Individual living benefit portfolio stood at Rs. 74.28 billion. 98.85% of these payouts were made thru EFT bettering last years ratio of 98.54%. This was achieved, despite lockdown constraints, which made timely document submission difficult for policyholders.

Covid related Claims:

Your Company has reported COVID Claims amounting to Rs. 4.11 billion (Gross of reinsurance) during the year.

Digital Initiatives / Enablers to assist claimants & claim processing: Option to upload Living Benefits documents in Easy Access app -

SMSs are being sent to policyholders whose policies were due (either Maturity / Survival Benefits) with Bitly links for accessing SBI Lifes "Easy Access" mobile app. With this link, policyholders could upload the required documents such as bank account proof, KYC docs and scan copy of policy document. This has played vital role in last FY since this option has enabled policyholders to submit necessary docs right from their homes without need of physical submission

Introduction of simplified Maturity process -

In FY 2021, we have started processing living benefit claims (up to payout of Rs. 5 lakhs and with the exception of assignment polices), on basis of the bank account details available with us post verification through NPCI / IMPS and without insisting for submission of original policy document. This simplified maturity process along with online upload option as mentioned in point (a), has ensured better YoY performance in terms of ‘On or Before Settlement despite lockdown constraints.

Risk Score for Early Claims -

Eachyear,wehaveseengrowthinclaimsnumbers and this year was no different. In both Early and Non-Early portfolio, we saw surge in intimations. Early claims needed to be investigated and till now the process of subjecting the case to investigation was a manual activity. Not all claims that are investigated are repudiated, which mean there was need of a predictive / analytical model to identify cases for either ‘likelihood of a claim being a Fraud / misrepresentation case or ‘probability of claim being repudiated.

In FY 2021, "Risk Score" was implemented for Early Claim. This analytical model provides a predictive score as well as Red-Amber-Green (RAG) categorization indicating the probability of ‘Fraud Risk.

Decentralization of Non-Early Claims -

This year, we have witnessed a whopping 85% jump in Non-Early Claims. To ensure faster processing and to facilitate / enable regions, we have enhanced regional limit to Rs. 15 lakhs from earlier Rs. 5 Lakhs. This has facilitated timely processing of claims despite surge in intimations and lockdown / Work from Home constraints.

Post Issuance Profile Verification (PIPV) Process -

In view of revised Section 45 of the Insurance Act, profile verification of high-risk cases, through external investigation, was started from April 2017. This exercise has helped us in early identification of fraudulent cases and initiate appropriate action to curb recurring frauds.

In the year under review, Company cancelled 371 policies Post Issuance Profile Verification (PIPV) as against 294 policies cancellation in FY 2019-2020. These policy cancellations have helped us to reduce our repudiation ratio by 1.03%. Sum Assured for policies cancelled under PIPV process is Rs. 21.76 crores.

Group business process redesign:

The core activities of the Group Operations department involve processing of New Business generated through Group Term Insurance, Fund Management & Group Claims Management, including PMJJBY. Apart from this, servicing Group Corporate & Group Non-Corporate Customers. With the focus on Digitization, Process improvements & Enhancing Customer Experience, following initiatives were undertaken during the period under review.

Digital On-Boarding for Group Products -

Towards facilitating digital On-boarding under various Group insurance products (Sampoorn

Suraksha, Kalyan Ulip & Cap Assure Gold etc.) provision for digital downloading & submission of master proposals form was created.

e-Certificate of Insurance (COI) & Annuity Certificate -

In line with IRDAI guidelines wherein Insurers can promote e-COI, Bitly SMS, WhatsApp, email, to ensure better delivery of COIs, and support green initiatives to align with Digital India. For Group customers provision was created for sending the COI & Annuity Certificates through (1) SMS Bitly Link (2) Availability on Group Customer Portal (3) Availability on Group Corporate Portal.

New Enrolments under YONO Insta Suraksha (Banks app) -

During the period under review, a total 6.29 lakhs new members were enrolled, thus total lives covered under master policy stand at 7.25 lakhs, as on March 31, 2021. In this policy group members can avail upto a maximum of Rs. 40 lakhs sum assured risk coverage just on three clicks, a most seamless process enabling issuance of e-COI instantly upon completion of on-boarding process. This is by far the best example of close integration with the banking partner app to market Life Insurance to its customers through API integration.

Group work flow application for Processing GTI Business -

Work flow Module for end to end system processing of Group Term Insurance New Business and Renewal Business was established. This has helped in Real time tracking of cases & status availability thereby eliminating the person dependent processing.

Digital procurement of e-CHQ -

In order to meet changing requirements under the GTI product member level Declaration of Good Health & Covid Questionnaires, we switched over from manual collection of CHQ / DGH to digital modes. Facility was created for digital submission of Common Health & Covid questionnaire through bitly Link to remove time - consuming physical movement of documents with added convenience to customers.

New Enrolments under PMJJBY Scheme -

During the period under review, 80.19 lakhs fresh members were enrolled through various partner Banks. During the corresponding period last year, 51.37 lakhs members were enrolled. There is a growth of 56% in new enrolments under PMJJBY Scheme during the period under review. As on March 31, 2021, there were total 1.73 Crores active members under PMJJBY Scheme, highest in the private sector life insurance segment.

Settlement of claims under PMJJBY Scheme -

During the year under review, the Company has settled 17,820 claims thereby achieving a claim settlement ratio of 99.94% under PMJJBY Scheme.

Virtual Account for Premium Remittance -

For facilitating the premium payment & premium allocation, separate Virtual Account Number (VAN) was created for master policy holders. VAN a technology solution that serves the purpose of masking actual account number and managing real time status with remitters details.

Customer grievance redressal and engagement:

The Client Relationship Department plays a pivotal role in ensuring that Customer Queries and Grievances are resolved swiftly to the full satisfaction of the customer and within the defined timelines. Client Relationship includes both Reactive Functions (efforts to solve customers issues) and Proactive Functions (measures taken to ensure a long-term relationship with customers) performed by the Company. Therefore, the Companys initiatives in the year under review has been to empower its employees to improve the Query / Grievance handling techniques, provide efficient and effective Resolution to Customers Grievances and to devise mechanisms to enhance the Customers overall experience at the post-sale service stage.

We have developed and are constantly upgrading our Portals and Digital Tools to improve our processes. CRM Next is an automated workflow that has been created for handling Customer Grievances, obtaining Sales Teams comments & Recommendation from the Regional Leadership Group, initiating Investigation wherever necessary, and seeking necessary approvals from the Competent Authority.

A web-based, real-time integration of Parivartan Module with our CRM Next Module has also been established. This is a module designed to empower SBI (Partner Banks) to log in Customer Queries / Complaints pertaining to SBI Life received at their end, to help us track and provide a quick Resolution to the same.

Over the years, your Company has seen a rise in Customer Satisfaction levels resulting in substantial decrease in the number of Complaints thereby giving an excellent Ratio to Total Issuance for Complaints Received across all categories and also in the whole industry. On comparing the total complaints received in the year under review with its corresponding period of the previous FY, we have recorded a dip in Mis-selling Complaints by 28%, Policy Not Received (PNR) Complaints by 29%, Non-Mis-selling Complaints by 17% and an

Overall Reduction of 26% in total Complaints received.

This shows that the number of happy customers is increasing and we are striving hard to ensure sustainable growth in this area.

Contact Center -

Your Company in-bound Call Center handled over 11 lac calls during the year under review and 93 thousand of the calls were responded through the IVR.

In the current pandemic situation, SBI Life continued its Contact Centre Services in Q1 (FY 20-21) with the active involvement and support from Employees of CR & CE Team at CPC & Regions and later through WFH set up for Contact Centres. Necessary infrastructure (safe & secured) was set up in coordination with SBI Life IT Team to continue the services remotely on the Mobile of Employees and later on the Mobile of CCE at contact centers.

We successfully handled more than 2 lacs calls from April 20 to July 20, out of which more than 1 lacs calls were handled through the WFH Model.

CR & CE Team at CPC and Regions handled 18,907 calls during the complete lock down i.e between April 20 – May 20.

SBI Lifes Contact Center was the only one across the Industry, which was made operational in the shortest possible time during the lockdown period. This activity helped us to gain the trust of our customers. Your Company turned the pandemic challenge into an opportunity and promoted our Digital Platforms like the CSS Portal to our customers to use it to their advantage. Despite having unseen, unheard challenges, the Customer Engagement Department thought out of the box to provide uninterrupted services to our Customers by taking various initiatives. Some of the Customer-centric initiatives in the FY 2021 are elaborated below.

Initiatives that improves Services offered by the Company -

Self Service option on IVR has been introduced to Customer to access bitly link of 10 commonly used services via SMS on their Mobile number (Services like CSS Portal, Address change, Policy Revival, E Mandate Registration, TDS Certificate, Renewal Payment, Premium Paid Certificate, E Policy document, Branch Locator, E-mail ID updation). This has helped us to handle high call volumes at the Contact Centre and reduce Call Abundancy Rate.

We have introduced Automated out-calling on the abandoned calls to ensure Nil Call Abundant Rate.

We are also triggering Auto SMS for out-bound Non-Contactable Cases with Contact Center details. Currently SMSs are beingtriggeredforCallBackRequest/Missed Call and for Lead/SMS Celebration & Solve/Abandoned Calls/NPS SRs.

Monthly "Learning cum Training" Model is introduced for Branches/HPCs at Regions and Contact Center Agents.

POC is also done for E-mail Automation Project. This project will help us to give a quick response to customer queries with a high Accuracy Level.

Leveraging Big Data Analytics:

SBI Life has been leveraging Analytics to help mitigate and control Risks in various business functions like Underwriting, Claims, Persistency etc. The outcomes of the various models are helping the respective functions to take more informed decisions, and helping in creating more efficient business processes.

Profile Score Model -

The model holistically estimates future behaviour of the customer considering all aspects of fraud, lapsation, surrender and early claim propensity. A unified score called the ‘Profile Score is generated at the time of proposal submission for aiding Underwriting decision. The model indicates the propensity of the proposal towards Good Behaviour (Good Persistency, Low Risk of Early Claims/Surrenders).

Model provides R-A-G categorisation. Your Company intend to use this Score for financial underwriting. The model output helps to waive off financial documentation requirements for green flagged proposals. Model score is also being utilized to increase the Auto Underwriting percentage. The Profile Score is being made available on Real Time basis in Work Flow Module. Scores output is being monitored on a regular basis to ensure that the Model stays in conformity with the Actual Experience. The Model has been made live in the month of May 2020. Monthly basis scoring being done for 1 to 1.5 Lakhs proposals.

Re-development of Lapse Revival Model -

Your Company used this model for Lapse Revival & also to predict the revival propensity for policies in Lapsed status. The model was developed utilising existing policy data with the Company. However, present evaluation of model output shows that there is significant change in bucket size in prediction from development time, and change in data proportion for most significant variables. Subsequently there was performance drop & inconsistency in terms of revival and capture rate by the model. Based on the observations the Lapse model has been taken up for re-development with Revised Model Approach.

Further considering the request from Renewal vertical team "to map the behavioural pattern of revival for 13th Month persistency policy bucket separately", lapsed model has been refined for carrying out in-depth analysis in different buckets. These Models are run on monthly basis and the outcome from the model provides the likelihood of revival within the next six months from the prediction date. All our Revival Campaigns utilize the data generated by this Model to improve the hit ratio.

Surrender prediction model -

‘Surrender Risk Prediction helps to predict likelihood of Surrender which helps in initiating proactive steps for Surrender prevention. Customer engagement strategies have been formulated to focus more on very high and highly likely buckets of surrenders. Defined process has been formulated to flag customer issues to the concerned departments for resolution. This helps to reduce the amount of surrenders. By using this model your Company is successful in having a very low Surrender to AUM ratio. The in-force policy portfolio has been divided into 3 sub-groups which have historically shown very different behaviour in terms of the Surrender experience. Separate predictive models have been developed for each of these sub-groups. The Model went live in the month of Jun 2020.

Post Issuance Profile Verification (PIPV) Analytics –

Even though the Risk Score Models are in place, it was a little difficult to detect all Fraudulent Customers at inception stage. Hence, suspicious policies must be identified immediately post issuance via Post Issuance Profile Verification (PIPV) model to prevent fraudulent claims from arising in the future. The PIPV Analytics Model wasdevelopedwiththeaimofidentifyingtheright set of policies that to be sent / selected for PIPV. Identifying the right set for PIPV increases the likelihood of capturing all fraudulent customers. By targeting a focus group of the total policy base, we were able to capture major events that includes Repudiations and PIPV Cancelled cases. By utilizing this model, we aim to increase success ratio of PIPV investigation. This also helps to reduce the PIPV investigation costs.

"Claim Fraud Detection" model-

The Model was developed with an objective to flag every early death claim based on risk propensity score of being fraudulent at death claim intimation stage. Flags generated by the Model has been integrated in I-Pay worksheet Panel under "Additional Policy details" against each early death claim on real-time basis. This helps assessors in claim evaluation to identify claims with higher propensity of being fraudulent and take further decision to go for investigation. The model provides output flags as very High, High Moderate and Low based on the propensity of the claims of being fraudulent. Top five influencers from prediction output are also displayed along with the risk flag and risk score in the assessment sheet. This helps in increasing the success ratio of Claim investigation and reduce Claim Settlement TAT. The model has been made live in the month of January, 2021.


FY 2021 has been a landmark year for SBI Life in Digital transformation. We continued our digital journey by implementing innovative solutions for business and customer support, using cutting - edge technology. The improved digital tools and intuitive customizations have played a significant role in enhancing the experienceofboth,ourinternalandexternalcustomers.

We have progressively enhanced the capacity and capabilities of our technology infrastructure that has consistently improved the availability of systems and applications for the business.

New normal in "Work From Home" (WFH) was maintained throughout the year with increased number of processes and employees ratio with scalable, secure and sustainable VDI technology. We ensured seamless transition of work environment while working at office to WFH without change in user experience, look and feel and desktop environment. All business operations, working from home or office, were carried out throughout the year by the respective stakeholder seamlessly, validating the technology capabilities and versatility of SBI Life, yet again.

In view of the continuing situation of the pandemic, laptops had been provided to all the staff to enable them to seamlessly switch between WFH and office depending on the local situation.

Some of the improvements implemented during the year are listed below:

A. Infrastructure

Data Centre (DC), Disaster Recovery (DR) and Wide Area Network (WAN)

We have been proactively managing our DC/DR/WAN infrastructure to ensure that our Head office, CPC and 940+ branches are adequately supported to handle the business volumes and to provide quality service to our customers.

During the year under review, the reach of MPLS network increased from 836 branches to 947 branches thereby consuming 1,722 MPLS links from 6 telecommunication companies, thus providing customer services at branches with dual redundant links.

Email Security

The Company has upgraded the existing email infrastructure thereby moving all users to a single email domain. This has increased the user experience and significantly enhanced the security features including data loss prevention (DLP) capabilities. 2-Factor authentication in the webmail has been implemented and tested. Roll out for all users would be completed by Apr 2021 with enhancing security.

VPN solution

During Covid-19 locked down 1,800 plus employees were enabled with VPN to work from home (WFH) to continue critical business processes at Regions and Branches.

DDoS (Distributed Denial of Services) Mitigation Services

The Company obtained volumetric DDoS attack mitigation services on all central corporate Internet links in Data Centre. This will prevent DDoS attacks initiated globally across the Internet.

The solution is also configured to prevent legit based (low & slow) DDoS attacks.

Network Access Control (NAC)

The Company has implemented NAC security feature of industry leading OEM, on all desktop /laptops systems in Corporate Office, CPC & branch offices.

This is being effectively utilised to evaluate security policy compliance of desktop systems, before permitting access to corporate network.

End Point Detection and Response

Implemented the Symantec End Point Detection and Response solution in all the end points.

This helps monitor and collect activity data from endpoints that could indicate a threat, analyze the data to identify threat patterns and automatically respond to identified threats to remove or contain them, and notify IT and IS personnel.

Helps discover and resolve threats with deep endpoint visibility and superior detection analytics, reducing mean time to remediation.

Integrated with our SOC so that any attack can be immediately acted upon and remediation activities can be initiated.

Trend Micro Deep Security Antivirus

Upgraded the existing Symantec Antivirus to Trend Micro Deep Security Anti-virus in our servers.

Deep Security features integrated modules including anti-malware, predictive machine learning, web reputation, firewall, intrusion prevention, integrity monitoring, application control, and log inspection to ensure server, application, and data security across physical, virtual, and cloud environments.

Laptops for enabling WFH for employees

Provided over 9000 laptops to employees across the country to enable them to WFH in case of pandemics. This has improved employees productivity and ensured that the work gets completed on time.

These laptops are already with the latest Windows edition and patches along with the antivirus, NAC and VPN agents configured for ready to use and monitored for security.

Firewall Management Rule system

Deployed the Algosec Firewall rule management system to help monitor and manage the firewall rules that are being deployed / removed from all the firewalls in the Company from a central console. AlgoSec Firewall Analyzer delivers visibility and analysis of complex network security policies across on-premise and cloud networks. It automates and simplifies security operations including troubleshooting, auditing, and risk analysis.

Security Operation Centre: (SOC)

In the year under review, the Company have further strengthened the existing, state of art, SOC to monitor 24x7 all critical IT devices, websites, mobile applications and other domains, owned or used by the Company. SOC monitors all production applications & related infrastructure devices for security alerts. Technology based on machine learning/artificial intelligence, data analytics, Threat Intelligence, Anticipation and Analytics with Threat Hunting, network behavior and user behavior are deployed. It has capability to quickly identify and detect cyber threats. Brand protection services for Internet facing websites, mobile application and social media handles are in operation. Dark Web are monitored for SBI Life contents with Intelligence Feed and action based on Incident are taken.

Implemented deception & decoy technology to provide a layer of protection to stop attackers who have penetrated the network level up to traps (decoy) IT asset.

Adoption of Virtualisation environment

Over 990 Virtual servers created on 56Host Servers resulting in power and space saving with optimum use of compute and storage. During Covid-19 lockdown and continued WFH, 1600 plus employees were enabled to WFH for Head Office and Central Processing Centre (CPC) employees, using VDI technology. Further, security of VDI was enhanced by deployment of unified access gateway (UAG) with second factor authentication which helped the Company in carrying out all departmental activities by employees throughout the year, while working from home, in a risk free environment.

B. Process Area

Following are the major process improvements done during the FY 2021:

New Policy Management System (PMS):

"Ingenium", the new Policy Management system, has been fully implemented in the FY 2021. This has resulted in drastic improvement of customer service quality and shorter TAT (Turnaround Time) for new Product Launches. It is now successfully managing multiple lines of business.

The balance of the older (Closed products) polices have also been migrated in the year under review as per schedule. This migration was a massive exercise, the biggest project in the insurance industry in India, and has been carried out in a smooth manner without any adverse impact to the end-customer.

Customer Relationship Management (CRM) system: "CRM Next" is the core system providing 360-degree view of the customer, leading to better service across all touch-points. It has recently been upgraded to the latest version and further enhancements have been carried out in the year under review to further enhance the quality of customer engagement.

Call-center during pandemic: Continuing the inbound calling service was crucial to support the customers when the lockdown commenced in March20. SBI Life devised a solution to this end and came out with a WFH solution in April20 itself making

SBI Life the only Insurer to have an operational call-center.

Robust Applications: Applications are continuously tuned to be at an optimal state to be in position to process huge transactional volumes each day smoothly.

Work Flow System: The New Business Work Flow System caters to the on boarding and Underwriting of new proposals for Individual business. The Group Workflow caters to the Underwriting of new proposals for Group and Credit-Life business. These platforms have greatly improved the efficiency of New Business and Underwriting Processes.

Robotic Process Automation, (RPA): The existing operational processes were evaluated in the year under review and around 25 processes have been transformed into RPA during the year under review, leading to improved efficiency and cost savings. This is a continuous activity with many more scheduled to be taken up in the coming year.

Mobile Solutions: Continuing the thrust from the previous year to adopt ‘Go Digital, more than 99% of the Individual New Proposals are sourced through our Mobile Application – mConnect. We strengthened our stack of mobility solutions for our sales force, internal users and customers. mConnect application is the proposal sourcing application that enables our sales force to procure business anywhere any time. Smart advisor Plus is extensively used by our sales intermediaries for providing pre and post-sales support to their customers. This tools provides a bouquet of services to the Sales manager and they can get any policy related information on the fly. This tool reduced the burden on our branch offices by enabling the sales executive (Life Mitra, CIF in the bank or Business Development Manager or Unit Managers) to provide prompt information and services to their customers.

Smart Advisor Plus is like a "mini Office in the pocket" for our sales intermediaries.

We also provide a dedicated application to our customers known as ‘Easy Access. Premium due alerts, ability to raise queries, submission of e-COE (Certificate of Existence) for pension products, are some of the key features of this application. In the year under review, with the focus continuing on "Go Digital", many new initiatives were expedited and we are at the forefront in its adaptation in all areas starting from Customer enrichment, Distributor efficiency and / or Employee empowerment. This journey is here to remain for a long time for us.

Digital bouquet for partner on-boarding:

Your Company has developed a ready set of digital platform bouquet including mobility and API (application program Interface) and has been made available for quick integration and on-boarding of partners for new business and renewal premiums.

In the year under review, we have integrated Real time EFT for Allahabad Bank, Indian Bank and RinnRakha apart from already running 60 APIs which includes SBI YONO.

C. Business Intelligence and Reporting

SBI Life has various reporting and analytics platforms for strategic decision making and actionable to a wide range of users, both internal and external. These platforms include reporting tools like AARAM, Crystal SAP BO, Banca Online, Agency Online and Analytics & BI platforms like AASAN. These tools support users from Sales and Marketing, Senior Management, Audit, Risk, Business Strategy, Operations as well as Corporate Agents and Brokers. Further, mobile reporting and dashboard application is made available to SBI Controllers and other Bank Partners through SAARATHI. This apart, various trackers, notifications and operational MIS are made available through automated mailer on periodic basis to above users.

Various datamarts are developed to cater to distribution channels & depts. that enable tracking quarterly performances of sales users on the defined KPIs, as well as sharing of the granular data (real-time and periodic basis) with corporate agents seamlessly on various platforms.


Equity markets rebounded strongly in FY21 after the sharp fall it had experienced in March 2020 on back of COVID-19 related disruption and uncertainty. Indian equities had a stellar year with Nifty touching an all-time high and ending the year with ~ 70% returns for the year. The small cap and midcap indices outperformed the large caps and ended the year with over 100% gains erasing some its past underperformance. The recovery was driven by large monetary and fiscal stimulus measures globally, high global and domestic liquidity, lower cost of capital, good recovery in economic activity post easing of lockdowns, lower than anticipated impact of COVID-19 on corporate earnings and economy, optimism on roll out of vaccines, etc. Indian markets witnessed strong FPI inflows of ~ USD 37 billion in FY 2021 even as domestic mutual funds witnessed outflows of ~ Rs. 63,000 crore. Retail participation in financial markets saw a sharp uptick through the year. India is expected to witness a 9.5% growth of real GDP based on estimates of various international agencies after a 7.3% contraction in FY 2021. INR appreciated by 3.2% from 75.54 to 73.11 thanks to the weakening of USD index. The index started falling with high twin deficits in the US and massive QE buying by the Federal Reserve.

Yield on 10-year Government of India Bond stayed almost entirely flat and moved marginally upwards by 2 basis points to end the year at 6.15%. Markets reacted positively with huge monetary support by RBI cutting policy rates by 135 bps to battle against Covid-19. Yields fell to 5.7% after the monetary support including OMO purchases. However, rising inflation amidst supply shocks, started pushing yields up to almost 6.27%, especially with the recovery of growth emerging. However, continued monetary accommodation and emergence of a second wave of the virus brought yields back to 6.15% by March end. The Assets under Management (AUM) of the Company has increased by 37.7% from Rs. 1,603.63 billion as on March 31, 2020 to Rs. 2,208.71 billion as at March 31, 2021. The AUM was made up of Rs. 1,046.56 billion of traditional funds (including shareholders) and Rs. 1,162.15 billion of Unit Linked Funds. The Unit linked portfolio majorly comprises of Equity funds, Bond funds and NAV guaranteed funds.


Persistency is a critical indicator of business viability and brand success. During the FY 2021, the Company has witnessed 23% growth in Renewal Premium collection at Rs. 296.30 billion, which contributed to 59% of Gross Written Premium. The Company has continued to focus on renewals and has undertaken initiatives to improve persistency of its existing policies. The independent Renewal Vertical is focusing on collection of renewal premiums and servicing policyholders. We shall continue to accord prime importance to this area.


SBI Life, one of the most trusted private Life insurance brands is now more than 20 years old. SBI Life family has grown from 16,759 employees as on March 31, 2020 to 17,464 employees as on March 31, 2021 which depicts a growth of 4%. While the average age of employees is 36 years 2 months and the average tenure is 5 years 1 months.

In terms of Section 136(1) of Companies Act, 2013 the Report and the Accounts are sent to the Members excluding the statement containing particulars of employees as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The statement containing aforesaid details may be obtained by the Members by writing to the Company Secretary at the Registered Office of the Company.


The SBI Life Employee Stock Option Plan 2018 (‘ESOP 2018) and SBI Life Employees Stock Option Scheme 2018 (‘the Scheme or ‘ESOS 2018) has been approved by the shareholders of the Company in the Annual General Meeting (AGM) held on September 27, 2018 based on the recommendation of the Board Nomination & Remuneration Committee (‘NRC) and Board of Directors (‘Board) in their meetings held on August 31, 2018.

The maximum number of stock options granted to eligible employees in accordance with ESOP 2018 shall not exceed 30,000,000 shares. During any one year, no Employee shall be granted Options equal to or exceeding 1% of the issued share capital of the Company at the time of Grant of Options unless an approval from the Shareholders is taken by way of special resolution in a General Meeting. Further, the maximum number of Options in aggregate granted to an employee under this Plan shall not exceed 1,00,00,000 Options. The Exercise Price shall be determined by the Board Nomination & Remuneration Committee in concurrence with the Board of Directors of the Company on the date the Options are granted and provided in the letter of grant.

During the year, NRC in its meeting held on July 21, 2020 has approved the grant of 924,690 Employee Stock Options (‘Options) under the provisions of ESOS 2018.

No employee was granted options during one year amounting to five percent or more of options granted during that year. Similarly, no employee was granted options during any one year, equal to or exceeding one percent of the issued capital of the Company at the time of grant.

During the year FY 2021, the Company has not granted any loan to its employees for purchasing shares of the Company.

The Scheme is in compliance with Securities and Exchange Board of India (Share Based Employee Benefits) Regulations 2014, as amended from time to time (‘SEBI SBEB Regulations). Further, there are no changes in the scheme. The below disclosures pursuant to the SEBI SBEB Regulations have been placed on website of the Company at https://

The disclosures pursuant to SEBI SBEB Regulations, Guidance Note on accounting for employee share based payments, disclosure of diluted EPS in accordance with ‘Accounting Standard 20 - Earnings Per Share issued by ICAI or any other relevant accounting standard have been disclosed in the Notes to Accounts which form part of financial statements in the Annual Report.


The Company has an Internal Complaints Committee to investigate and inquire into sexual harassment complaints in line with The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013. The Company has in place a policy on Anti-Sexual Harassment, which purports the Companys zero-tolerance towards any form of prejudice, gender bias and sexual harassment at the workplace. The Company had undertaken training on e-shiksha empowered, our digital platform, on awareness and sensitization with respect to sexual harassment at workplace. During FY 2020-21, all employees were mandated to take online training on the subject with help of specially designed module, ‘Prathishta so that they understand the anti-sexual harassment policy, the complete framework adopted by the Company to report and resolve instances of sexual harassment etc., details of which have been mentioned in the Business Responsibility Report. Further, the Companys Policy on Prevention of Sexual Harassment of Women at the Workplace along with the details of Internal Committee at each Region is accessible to all employees on the Companys intranet, e-bandhan. During the year FY 2021 under review, 2 sexual harassment cases were filed excluding 2 cases pending from previous year. Of these, 3 were disposed-off during the year and appropriate actions were taken within timelines for 1 case in FY 2021-22. Having an adept POSH policy has enabled us in employer branding by creating employee value proposition, permeating a sense of safety amongst employees, retaining vital talent and promoting inclusively.


SBI Life is in the business of covering life, health & longevity risks of its policyholders on the consideration of a premium. The Company as a part of its business, invests the premiums received and provides long term returns to the customers on its savings & investment products. Risk Management therefore becomes an integral part of its business activities. The Company recognises and manages its risks in a proactive, ongoing and positive manner. Risk philosophy of the Company is outlined in the Risk Management Policy.

The Risk Management policy specifies the process for identification, measurement and analysis of the Companys risk exposures; develop risk management strategies and its monitoring. The Risk Management Policy is supported by various other policies pertaining to insurance, market, compliance, outsourcing, fraud, information security and business continuity management. Above referred policies are reviewed by the Risk Management Committee of the Board on an annual basis. The Company has formulated risk appetite statements at the corporate as well as at the functional level, which are reviewed and monitored by the Risk Management Committee of the Board and Internal Risk Management Committee respectively. The Company also carries out an ICAAP (Internal Capital Adequacy Assessment Process) activity, which details the assessment of material risks, estimation of capital requirement and adequacy for maintaining solvency requirements.

The Company has aligned its risk management practices to ISO 31000:2018 standard on Risk Management. This implies that the Company has strong processes for risk identification, management and ISO 22301 certified and its Information Security Management System (ISMS) is ISO 27001 certified. Sound risk management practices followed by the Company enabled mitigation. The Companys Business Continuity Management System (BCMS) is it to continue core business operations at an acceptable level. The Company seamlessly moved a bulk of its operations to ‘Work from Home model during the nationwide lockdown announced due to Covid-19. Requisite training was imparted and appropriate cyber security measures were undertaken prior to operationalisation of the model.

The Company carried out a maturity assessment of its cyber security practices through an independent consultant. The assessment was done using National Institute of Standards and Technology (NIST) framework and evaluated the Companys security posture at a broad level. This would also assist in developing tactical and strategic directions to further mature and strengthen the Companys security program. This would enable the Company to take a proactive approach to cyber security and thereby prevent unpleasant surprises later. Based on the assessment, the Company is taking additional steps to further enhance effectiveness and maturity of cyber security practices adopted by the Company. More information on the risk practices adopted by the Company is available in the ‘Enterprise Risk Management section appended to this report and ‘Management Report section of the Annual report.


Internal Audit:

The Company has in place a robust internal audit framework. The Inspection and Audit (I & A) Department undertakes risk based audit approach and it commensurate with the nature of the business and the size of its operations. The internal audit plan covers Information System Audit, different process audit as well as transaction based audits at the Head office, Regional Offices and across various branches of the Company.

The audits are carried out by the internal audit team of the Company and also by the outsourced audit firms. The approach of the audit is to verify compliance with the regulatory, operational and system related controls. Key audit observation and recommendations are reported to the Board Audit Committee of the Company. Implementation of the recommendations is actively monitored.

I & A has designed offsite monitoring system (OMS) with an objective to identify deviations at an early stage and sharing the same with concerned process owners for immediate corrective action. During FY 2021, exception reports developed were made operational for around 90 scenarios. The output of these exception reports for processes viz. Underwriting, New Business, Survival Benefit Claims and Channel Administration were shared with concerned department for corrective actions.

Also, in FY 2021, we have successfully conducted audit of all the branches remotely (i.e. without onsite visits) by in-house audit team.

Concurrent Audit:

In accordance with Insurance Regulatory and Development Authority of India (Investment) Regulations, the Company has also engaged professional chartered accountants firm to carry out concurrent audit of investment operation as per IRDAI investment regulations / guidelines and guidance note on Internal / Concurrent Audit of Investment functions of Insurance Companies, issued by the Institute of Chartered Accountants of India. Any significant findings in the concurrent audit are presented to the Audit Committee and reviewed by Board Investment Sub Committee and Board Investment Committee.


The Board Audit Committee of the Company has laid down governing principles to oversee the compliance framework of the Company. The Committee discusses the level of compliance in the Company and any associated risks and reports the same to the Board. The Company has also formulated various internal policies and procedures to define framework for the working of various functions to ensure compliance. The Compliance function identifies and communicates regulatory requirements to relevant functions in a timely manner and monitors critical compliance risks based on suitable monitoring mechanism. The Compliance function works in liaison with the regulators and provides clarifications to various functions on applicable laws, regulations and circulars issued by the regulatory authorities. A compliance certificate signed by the Managing Director & CEO is placed at the Board Audit Committee on a quarterly basis.

The Company has also formulated various internal policies and procedures relating to working of various functions to ensure compliance.


The Companies Act, 2013 requires the Board of Directors, to lay down adequate and effective internal financial controls with reference to the Financial Statements and include it in the Board report. The Company has aligned its internal financial control system with the requirements of the Companies Act 2013, on lines of globally accepted risk based framework as issued by Committee of Sponsoring Organizations (COSO). The internal control framework is intended to increase transparency and accountability in an organizations process of designing and implementing a system of internal control. The framework requires the Company to identify and analyse risks and manage appropriate responses. The key components of the internal financial control framework include:

Entity level controls:

Entity Level Controls (ELCs) operates at an organisation level. The Company has defined a set of entity level policies and controls. The ELCs set up by the Company includes various policies and procedure in place such as Anti Money Laundering and Counter-Financing of Terrorism policy, Business Continuity Management policy, IT and Information Security policy, Risk Management Policy, Whistle blower Policy etc.

Process level controls:

The Company has defined a set of process level controls across its business and support functions such as premium, reinsurance, claims management, agency management fixed assets etc. The control type covers key operating controls, financial reporting controls & IT controls have been done to ensure compliance with COSO framework.

Review controls:

The Companys internal financial control framework is based on ‘three lines of defence model. The Company has laid down standard operation procedures and policies to guide the business operations.

The Company has a well-defined delegation of power with authority limits for approving revenue and capital expenditure. Statutory, Concurrent and Internal Auditors undertake rigorous testing of the control environment of the Company.

The Company has a Chief Audit Officer with a dedicated internal audit team which is commensurate with the size, nature & complexity of operations of the Company.

The Company also undergoes an independent internal / concurrent audit by specialised third party professional consultants to review function specific regulatory compliances as well as internal controls. The Audit Committee reviews reports submitted by the Management and audit reports submitted by the internal auditors and statutory auditors. Suggestions for improvements are considered and the Audit Committee follows up on corrective actions. The Audit Committee also meets the Companys Statutory Auditors to ascertain their views on the adequacy of internal control systems and keeps the board of directors informed of its major observations, if any periodically.

Auditors Report

There were no qualifications, reservations, adverse, remarks or disclaimers on Internal Financial Controls made by the Statutory Auditors in their report for the financial year ended March 31, 2021.


The Company has Policy on materiality of Related Party Transactions and on dealing with Related Party Transactions to regulate the transactions with its related parties. As per the policy, all related party transactions require approval of the Board Audit Committee. As per Rule 6A of the Companies (Meeting of Boards and its Powers) Rules 2014, the Audit Committee may grant omnibus approval for related party transaction proposed to be entered into by the Company subject to terms and conditions mentioned in the said Rule.

All the Related Party Transactions entered during the financial year were on arms length basis and in ordinary course of business. All related party transactions are placed before the Audit Committee of the Board for its approval. During the year, there were no material contracts or arrangements or transactions with related parties that need to be disclosed as per Section 188(1) of the Companies Act, 2013.

M/s.S.K.Patodia&Associates,CharteredAccountants, reviewed the related party transactions for the year ended March 31, 2021 and their certificate is placed at the meeting of the Board Audit Committee, along with details of such transactions.

All Related Party Transactions as required under Accounting Standards AS-18 are reported in Note 39 of Schedule 16(C) – Notes to Accounts of the Financial Statements of the Company.

The policy on materiality of Related Party Transactions and on dealing with Related Party Transactions, has been hosted on the website of the Company can be viewed at https://


IRDAI ("Authority") vide its circular dated January 21, 2020 has withdrawn its erstwhile circular dated June 28, 2017 on implementation of Ind AS from FY 2020-21 and dispensed with the requirement of quarterly submission of Proforma Ind AS financial statements on account of proposed amendments in IFRS 17 by International Accounting Standard Board (IASB). Thus, effective date of IND AS implementation shall be decided by the IRDAI post finalization of IFRS 17 by IASB.

In June 2020, IASB published amendments to IFRS 17 including a deferral of the effective date of the Standard by two years, i.e., globally IFRS 17 is effective from annual periods beginning on or after 1 January 2023.

SubsequentlyinDecember2020,InstituteofChartered Accountants of India (ICAI) has issued an exposure draft of Amendments to Ind AS117, Insurance Contracts applicable with effect from 1st April 2023. The final dates for Ind AS implementation are yet to be announced by the Authority.


Change in Directors and Key Managerial Personnels (KMPs) during the year:

Name of the Director / KMP Nature of change With effect From
Mr. Mahesh Kumar Sharma Appointed as Deputy Chief Executive Officer April 08, 2020
Mr. Sanjeev Nautiyal Ceased as Managing Director & Chief Executive Officer May 08, 2020
Mr. Mahesh Kumar Sharma Ceased as Deputy Chief Executive Officer and Appointed as a Managing Director and Chief Executive Officer May 09, 2020
Ms. Manjula Kalyanasundaram Ceased as Executive Vice President & Chief of Human Resources & Management Services May 19, 2020
Ms. Seema Trikannad Appointed as Executive Vice President & Chief of Human Resources & Management Services May 20, 2020
Ms. Sunita Sharma Appointed as Additional Independent Director August 20, 2020
Mr. Ashutosh Pednekar Appointed as Additional Independent Director August 20, 2020
Mr. Narayan K. Seshadri Appointed as Additional Independent Director August 20, 2020
Mr. Ashutosh Pednekar Ceased as Independent Director due to resignation September 03, 2020
Mr. Raj N. Bhardwaj Ceased as Independent Director upon completion of term September 06, 2020
Mr. Ravi Rambabu Ceased as Independent Director upon completion of term September 06, 2020
Mr. Nilesh Vikamsey Ceased as Independent Director upon completion of term September 06, 2020
Mr. Deepak Amin Re-appointed as Independent Director for second term September 07, 2020
Mr. Prithesh Chaubey Appointed as Appointed Actuary September 30, 2020
Mr. Sanjeev Pujari Ceased as President – Risk Management & Actuarial September 30, 2020
Mr. Subhendu Kumar Bal Appointed as Chief Actuary & CRO (Chief Risk Officer) October 01, 2020
Mr. Rajnish Kumar Ceased as the Chairman October 06, 2020
Ms. Sunita Sharma Ceased as an Independent Director November 23, 2020
Mr. Dinesh Kumar Khara Appointed as the Chairman November 24, 2020
Mr. Shobinder Duggal Appointed as Additional Independent Director December 28, 2020

Key Managerial Personnel

Mr. Mahesh Kumar Sharma (Managing Director & CEO), Mr. Sangramjit Sarangi (President & Chief Financial Officer) and Mr. Vinod Koyande (Company Secretary) are designated "Key Managerial Personnel" of the Company, under the provisions of Section 203 of the Companies Act 2013. During the year Mr. Sanjeev Nautiyal (Managing Director & CEO) has resigned on account of repatriation back to SBI and Mr. Mahesh Kumar Sharma has been appointed as Managing Director & CEO of the Company w.e.f. May 09, 2020.

Further, in accordance with Corporate Governance Guidelines ("CG Guidelines") issued by IRDAI the Company has fifteen (15) Key Management Persons including above mentioned KMPs.

Declaration by directors

All independent Directors have registered themselves in the Independent Director Databank and have submitted declarations that they meet the criteria of independence as laid down under Section 149 of the Companies Act, 2013 along with rules framed thereunder and Regulation 16 of the Listing Regulations. There has been no change in the circumstances affecting their status as independent directors of the Company.

The Company has also received declarations from all its Directors as per Section 164 of the Companies Act, 2013, confirming they are not disqualified from being appointed as Directors of the Company. The said declarations were noted by the Board of Directors at its Meeting held on May 3, 2021.

‘Fit and Proper criteria

In accordance with Guidelines for Corporate Governance issued by IRDAI, the Directors of insurers have to meet the ‘fit and proper criteria. Accordingly, all the Directors of the Company have confirmed compliance with the ‘fit and proper criteria, prescribed under the Corporate Governance Guidelines issued by the IRDAI.

Directors & Officers Liability Insurance

Regulation 25 (10) of the SEBI (Listing Obligations & Disclosures Requirement) Regulations 2015 requires the Companies to take Directors and Officers Liability Insurance (D&O) for all its Independent Directors. The Company has taken D&O Insurance for all its Board of Directors and Members of the Senior Management Team for such quantum and risks as determined by the Board

Common Directorships

Pursuant to Section 48A of the Insurance Act, 1938, the Company has obtained the necessary approval from IRDAI for directors having common directorship with State Bank of India (being corporate agent of the Company).


During the year, thirteen Board Meetings were convened and held, the details of which are given in the Report on Corporate Governance, which is forming a part of this report. The intervening gap between the said Board Meetings was within the period prescribed under the Companies Act, 2013. The details of the Board and Board Committee meetings and the attendance of Directors thereat, forms part of the Corporate Governance Report, which is annexed to this Directors Report.

Secretarial Standards

During the FY 2021, the Company is in compliance with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India with respect to board and general meetings.

Remuneration Policy

Pursuant to the provisions of Section 178 of the Companies Act, 2013, the Board has approved the remuneration policy as recommended by the Board Nomination & Remuneration Committee. The details of the said policy are annexed as Annexure I to this Report.


The Corporate Governance philosophy of the Company is to comply with not only the statutory requirements but also to voluntarily formulate and adhere to a strong set of Corporate Governance practices which includes code of business conduct, corporate ethics, values, risk management, etc. The Company is committed to achieve the highest standard of Corporate Governance. The Report on Corporate Governance is annexed and forms part of this Annual Report.


The Company constituted the Corporate Social Responsibility Committee (CSR) of the Board of Directors in accordance with the provisions of Section 135 of the Companies Act 2013 read with the Companies (Corporate Social Responsibility) Rules 2014, which drives the CSR program of the Company. The CSR Committee of the Board confirms that the implementation and monitoring of CSR policy, is in compliance with CSR objectives and Policy of the Company.

The brief outline of CSR Policy, including overview of the program proposed to be undertaken, the composition of the CSR Committee, average net profits of the Company for the past three financial years, prescribed CSR expenditure and details of amount spent on CSR activities during the financial year have been disclosed in Annexure II to this report, as mandated under the said Rules. Further, the Corporate Social Responsibility Policy of the Company as approved by the Board has been hosted on the Companys website


In line with the clarification given by the Ministry of Corporate Affairs under the Removal of Difficulty Order dated 13 February 2015, the provisions of Section 186 of the Companies Act 2013 relating to loans, guarantees and investments do not apply to the Company.


The Company does not have any Subsidiary, Joint Ventures or Associate Company.


As per the regulatory requirements, the Company has met its Rural and Social Sector obligations for FY 2021. As against the minimum requirement of 20%, the Company has issued 26.61% policies in the rural sector which affirms the Companys approach towards life insurance inclusion. Further, 571,378 new lives covered (6.38% of total new lives covered in preceding year) by the Company are from the underprivileged social sector as against the regulatory requirement of at least 5% of total lives covered in preceding year. Consequently, the Company has met the minimum social and rural regulatory norms.


Pursuant to the provisions of Regulation 3 of the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations 2002, the Management Report is placed separately and forms part of the Annual Report.


In view of the applicability of Section 139 of the Companies Act 2013, Comptroller and Auditor General of India (C&AG) appoints Statutory Auditors of the Company. Accordingly, C&AG appointed M/s S. K. Patodia & Associates, Chartered Accountants and M/s S.C. Bapna & Associates, Chartered Accountants, as joint statutory auditors of the Company for FY 2020-21.

Statutory Audit and other fees paid to Joint Statutory Auditors for FY 2021 as below:

(Rs. in 000s)

Particulars Amount
Joint Statutory Audit Fees 5,700
Other Certification Fees 1,933


The Statutory Auditors Report (including annexure thereof) to the Members does not contain any qualification, reservation, adverse remark, or disclaimer hence do not call for any further comments u/s 134 (3) (f) of the Companies Act 2013. There were no reportable frauds identified by the statutory auditors during the FY2021.


The Comptroller & Auditor General of India (C&AG) have conducted a supplementary audit u/s 143(6)(b) of the Companies Act, 2013 of the accounts of the Company for the year ended March 31, 2021. The C&AG vide their report no. GA/CA-I/Accounts/SBI Life/2020-21/67 dated July 23, 2021 have stated that there is nothing significant which would give rise to any comment upon or supplement to Statutory Auditors Report. The Report of C&AG is being placed with the report of Statutory Auditors of the Company.


Pursuant to Section 204 of the Companies Act, 2013 read with Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s N. L. Bhatia & Associates, Practicing Company Secretary, Mumbai as the Secretarial Auditor of the Company.

The Auditor has not made any qualification, reservation or adverse remark or disclaimer in his report for FY 2021. The detailed report on Secretarial Audit of the Company for FY 2021 is enclosed as Annexure III to the Board report.


Maintenance of cost records and requirement of cost audit as prescribed under the provisions of section 148(1) of the Companies Act, 2013 are not applicable for the business activities carried out by the Company as the Central Government has not prescribed the maintenance of cost records under Section 148 of the Act for the services rendered by the Company.


Pursuant to Section 134(3)(a) and Section 92(3) of the Companies Act 2013 (as amended by the Companies (Amendment) Act, 2017), read with Rule 12 of the Companies (Management and Administration) Rules, 2014 an extract of the Annual Return (in form MGT 9) has been annexed as Annexure IV to this Report.


The Outbreak of COVID-19 virus continue to spread across the globe including India, resulting in significant impact on global and Indias economic environment including volatility in the capital markets. This outbreak was declared as global pandemic by World Health Organisation (WHO) on March 11, 2020. The Company has assessed the overall impact of this pandemic on its business and financials, including valuation of assets, policy liabilities and solvency for the year ended March 31, 2021. Based on the evaluation, the Company have made an additional reserve amounting to Rs. 1.83 billion towards COVID-19 pandemic and the same has been provided for as at 31/03/2021 in the actuarial policy liability. The Company will continue to closely monitor any future developments relating to COVID-19 which may have any impact on its business and financial position.


During FY 2021, no significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Companys operation in future.


In terms of Section 134(3) (c) read with 134(5) of the Companies Act, 2013 and the Corporate Governance Guidelines, your Directors confirm that; a) in the preparation of the annual accounts for the year ended March 31, 2021, the applicable Accounting Standards have been followed along with proper explanation relating to material departures; b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on March 31, 2021 and of the profit of the Company for the year ended on that date; c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d) they have prepared the accounts for the current financial year ended March 31, 2021 on a going concern basis; e) they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.


A. Conservation of Energy

In view of the nature of business activity of the Company, the information relating to the conservation of energy, as required under Section 134 (3) and Rule 8 (3) of Companies (Accounts) Rules, 2014, is not applicable to the Company.

B. Technology Absorption

Sr. No. Particulars Remarks
Research & Development (R&D)
1. Specific areas in which R & D carried out by the Company In the year under review, some of the areas where we have experimented in our Digilab includes Optical Character Recognition (OCR), communication thru digital medium, voice processing and IoT
2. Benefits derived as a result of the above R&D In the year under review, we have been able to roll out a number of initiatives based on the R&D done in Digilab. A few noted ones are provided below:
Web OCR: Web OCR is in-house developed tool to identify the document type. It also performs Aadhaar masking.
Offline KYC: Customers are able to perform Offline KYC with the help of our mobile app during the proposal journey. The solution makes it convenient for the customers and sales agent in faster closure of cases
Chatbot Integration: Our Chatbot "RIA" has been integrated in a number of ways, with the website, on the intranet pages, on Whatsapp to answer customer queries, assist in premium payment thru chat etc., to name a few.
e-Certificate of Existence (eCOE): A digital process has been introduced where the CoE can be submitted using mobile app, eliminating the need for a visit to our branch.
Voice based solutions: These include, integration with Amazon Alexa, voice based search on our website, conversational analytics
3. Future plan of action We will continue to work with the new technologies available and find ways to improve the experience for our stakeholders in technology area
4. Expenditure on R & D: In-house development.
(a) Capital
(b) Recurring
(c) Total
(d) Total R & D expenditure as a percentage of total turnover

Technology absorption, adaption and innovation

1. Efforts, in brief, made towards technology absorption, adaptation and innovation Insta PIVC: PIVC application acts as one solution that is now included in customer proposal form filling journey in all channels, where sales intermediary can get the customer verification done digitally by capturing photo / video. A transcript is generated for further processing.
Travel Kit for Renewal: The Application is a Mobile based Traveller kit (integrated with Smart Advisor) to access Renewal data.
Lets Huddle: Application for managed conference call through mobile now launched pan-India for various hierarchies.
2. Benefits derived as a result of the above efforts, e.g., product improvement, cost reduction, product development, import substitution, etc. Key benefits are faster turnaround for new business completion, improvement in the renewal premium collection and faster communication among the teams in corporate office and Regional offices
3. In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year), following information may be furnished: Nil
(a) Technology imported
(b) Year of import
(c) Has technology been fully absorbed?
(d) If not fully absorbed, areas where this has not taken place, reasons there for and future plans of action.

C. Foreign Exchange Earnings and Outgo

Details of foreign exchange earnings and outgo required under above Rules are as under:

(Rs. in billion)

Particulars FY 2021 FY 2020
Foreign Exchange Earnings 0.07 0.09
Foreign Exchange Outgo 0.19 0.21


The Company has always valued its customer relationships and it is the Companys belief that all stakeholders should have access to complete information regarding its position to enable them to accurately assess its future potential. The Company disseminates information on its operations and initiatives on a regular basis. The Companys website ( serves as a key awareness facility for all its stakeholders, allowing them to access information at their convenience. It provides comprehensive information on the Companys strategy, financial performance, operational performance and the latest press releases.

The Company publishes financials results on a quarterly basis. The financial results of the Company are prepared and posted on the website of the Company for the current as well as previous years. Further, the quarterly results and earnings update are also posted on the website of the Company. Every quarter, the Managing Director & CEO alongwith the senior management officials of the Company participate on a call with the analysts / shareholders. The Companys investor relations personnel respond to specific queries and play a proactive role in disseminating information to both analysts and investors. All information which could have a material bearing on the Companys share price is released through as per regulatory requirements.


Business Responsibility Report as stipulated under Regulation 34 of the Listing Regulations form part of the Annual Report.


The Securities Exchange Board of India had recommended top 500 listed entities to voluntarily prepare their Annual Report adopting the principles of Integrated Reporting prescribed by the International Integrated Reporting Council.

In view of the above, The Company has voluntarily adopted the principles and has prepared its third Integrated Report for FY 2021 which forms part of this Annual Report.


The Insurance Regulatory and Development Authority of India (IRDAI) have renewed the annual license of the Company to continue the Life Insurance Business for the FY 2021.


A. Economic Capital:

The annual assessment of Economic Capital of SBI Life was carried out as on March 31, 2021. As part of this exercise, we have quantified the capital requirements relating to various risks such as Insurance Risks (Mortality risk, Morbidity Risk, Longevity Risk, Persistency Risk, Expense Risk, Catastrophe Risk) and Non- Insurance Risks (Market Risk, Operational Risk, Default Risk). As at 31st March 2021 Solvency ratio on Economic Basis is 3.14. The Solvency Ratio on Economic Basis has been estimated as, the ratio of excess of economic Assets over economic Liability to Total Economic Capital Requirement.

B. Solvency Margin:

The Directors are pleased to report that the assets of the Company are higher than the liabilities of the Company and the assets are more than sufficient to meet the minimum solvency margin level of 1.50 times, as specified in section 64 VA of the Insurance Act, 1938 read with the IRDAI (Assets, Liabilities, and Solvency Margin of Life Insurance Business) Regulations, 2016. The Company has a strong solvency ratio of 2.15 as on March 31, 2021 (Previous year ended March 31, 2020: 1.95) as against the Regulatory requirement of 1.50.

C. IRDAI Directions

IRDAI has issued directions under Section 34 (1) of the Insurance Act, 1938 to distribute the administrative charges paid to master policyholders amounting to Rs. 843,174 thousands (previous year ended March 31, 2020: Rs. 843,174 thousands) vide order no. IRDA/Life/ORD/Misc/228/10/2012 dated October 5, 2012. The Company had filed an appeal against the said order with the Ministry of Finance, Government of India, which remanded the case back to IRDAI on November 4, 2015. Thereafter, IRDAI issued further directions dated January 11, 2017 reiterating the directions issued on October 5, 2012. The Company filed an appeal against the said directions/ orders with the Securities Appellate Tribunal (SAT), which was dismissed by the SAT vide order dated 7 April, 2021. Basis the strong legal opinions on the merits of the case, the Company had decided to challenge the order of Honble SAT and accordingly disclosed the amount under contingent liabilities in the notes to accounts forming part of Financial Statement for year ended March 31, 2021. Further, on June 21, 2021, the Company has instituted Civil Appeal in the Honble Supreme Court of India challenging the SAT order dated April 7, 2021. The appeal has been dismissed by the Honble Supreme Court, at a hearing held on July 26, 2021. The Company has filed review petition before Honble Supreme Court of India against its order dated July 26, 2021.

IRDAI has issued directions under section 34 (1) of the Insurance Act, 1938 to refund commission paid to corporate agents amounting to Rs. 2,752,948 thousands (previous year ended March 31, 2020: Rs. 2,752,948 thousands) vide order no. IRDA/Life/ORD/Misc/083/03/2014 dated March 11, 2014 to the members or the beneficiaries. The said IRDAI order has been set aside by the Securities Appellate Tribunal (SAT) vide its order dated January 29, 2020. The SAT has remitted the matter to IRDAI with a direction to recalculate the interest earned on advance premium collected. The Company had granted discount in respect of advance premium collected. Subsequently, on March 3, 2021 the Company has received notice of institution of civil appeals filed by IRDAI in Supreme Court against the SAT order dated January 29, 2020. The Company on the basis of legal opinion and good case on merits has challenged the order of 29 January 2020 with Honble Supreme Court of India vide a Civil Appeal instituted on 22 June 2021.

At hearing held on July 26, 2021 by the Honble Supreme Court notice has been issued to IRDAI.

D. Appointed Actuarys Certificate

The certificate of the Appointed Actuary on valuation and actuarial assumptions is enclosed in the financial statements.

E. Certificate from Compliance Officer (under the IRDAI Corporate Governance Guidelines)

A Compliance Certificate, for complying with IRDAI Corporate Governance Guidelines, issued by the Company Secretary, designated as the Compliance officer under the IRDAI Corporate Governance Guidelines, is enclosed and forms part of the Corporate Governance Report.


The Directors are grateful to the Insurance Regulatory and Development Authority of India (IRDAI), Reserve Bank of India (RBI), Comptroller and Auditor General of India (C&AG), Securities and Exchange Board of India (SEBI) and Government of India (GOI) for their continued co-operation, support and advice. The Directors would also like to take this opportunity to express their sincere thanks to the valued customers and shareholders for their trust and patronage.

The Directors also express their gratitude for the advice, guidance and support received from time to time, from the auditors, and statutory authorities. The Directors expresses their deep sense of appreciation to all the employees, insurance advisors, corporate agents and brokers, distributors, re-insurers, bankers and the Registrars who continue to display outstanding professionalism and commitment, enabling the organization to retain market leadership in its business operations. The Directors also wish to express their gratitude to all stakeholders for their continued support and trust.

For and on behalf of the Board of Directors
Dinesh Kumar Khara
Place: Mumbai Chairman
Date: August 24, 2021 DIN: 06737041