New Delhi: Anil Ambani group firm Reliance Life Insurance is aiming to receive premium of around Rs1,000 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 Rs100 crore premium from micro insurance segment this year itself and plans to scale this to up to Rs1,000 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 (MFIs), 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 $2 billion opportunity in India. The current reach of micro insurance is 5 million people or only 2% of the poor.