Plans for 4D growth set by ICICI Prudential Life

2 Aug 2023 , 02:37 PM

Following the recent tax changes that hit high-value non-par products, ICICI Prudential Life Insurance is observing changes in investing habits, including a resurgence in demand for ULIPs and an increase in demand for protection and annuity products. 

Anup Bagchi, the newly appointed managing director, tells Shilpy Sinha from ET that the company is honing its customer centricity in a crowded insurance industry thanks to a strong balance sheet and cautious risk management.

On FY24 growth expectations, Anup Bagchi said “If you look at month-on-month growth, our May and June were better than April. For the quarter there was a little bit of compression on the margin and the APE. So that led to a little bit of compression on VNB.”

When asked about the impact of tax changes on high-value non-participating products, he said “There is no substitution for that product in any other sector. So from that perspective, it will get adjusted. During the first quarter, there was an impact on sales of high-value non-participating products. However, we are now seeing a shift of funds into other products like ULIPs and participating funds. While there might be some impact, there is no disadvantage for investments over ₹5 lahks.”

When asked about his approach to growth he told ET “We will work on our 4D – we will use data analytics, digitise everything, diversify across channels and dig deep into the diversification of products. We will focus on our customer segment. We will work towards growing penetration. There is an opportunity for all of us in growing penetration from 0.7% to 10%. We have to dig deep into the customers figuring out their needs, their life stage, and their requirements and then come out with the most relevant products, which will resonate with them. Then, the most important part is to bridge the channel and the distributor by figuring out the right distributor. That’s how it has gotten done. That’s how ICICI Direct happened.”

For feedback and suggestions, write to us at [e-mail]