New Delhi: Anil Ambani group firm Reliance
Life Insurance is aiming to receive premium of around Rs 1,000
cr in the next five years from micro insurance space and is
planning to introduce new products to cater to the savings
needs of this segment.
Reliance Life Insurance Company (RLIC) is likely to get
Rs 100 crore premium from micro insurance segment this year
itself and plans to scale this to up to Rs 1,000 crore in the
next five years` time.
Elaborating on the new products the company is planning
to introduce, Reliance Capital CEO Sam Ghosh said, "RLIC will
be tapping this market with Group savings insurance policies
and group term life."
Ghosh further said "this segment has unique servicing
requirements and we will be using technology to drive down
transaction costs, while partnering with groups such as Micro
Finance Institutions, Non Governmental Organisation, banks and
other financial groups to access these segments".
RLIC would be launching this initiative across ten states
initially and would focus on product reach and relevance as
against conventional focus on premium alone by most players.
As per UNDP, Micro Insurance, which refers to
provisioning of financial services to low-income groups, is a
USD 2 billion opportunity in India. The current reach of micro
insurance is 5 million people or only 2 percent of the poor.