Shriram Life gets PFRDA nod to become annuity service provider

NEW DELHI: Shriram Life Insurance Company (SLIC) is empanelled as an Annuity Service Provider by the Pension Fund Regulatory Development Authority (PFRDA). The empanelment will help the insurance major manage the annuity component of the maturity proceeds under the National Pension System (NPS).

The PFRDA certification will help SLIC garner more NPS subscribers under its annuity plan. With close to 1.5 crore subscribers under NPS and assets under management (AUM) of more than ₹7 trillion, SLIC’s empanelment as ASP will help it mobilise 40% of the NPS maturity amount which will be open to investment in annuity schemes.

Immediate Annuity Plus, SLIC’s annuity plan, has options for NPS subscribers that offers flexible options for retirees to continue their lives in the same financial conditions as they did before.

The annuity premium mobilisation in India is above ₹25,000 crore per year. As NPS subscriptions mature and subscribers retire, this opportunity will expand . This will also enable customers to choose from an array of insurance providers who provide rewarding annuity plans according to their needs and lifestyle.

Casparus Kromhout, MD & CEO, Shriram Life Insurance Company, said, “Shriram Life has a well-priced immediate annuity product and a robust fund management framework. With these, we are gearing up to make the best use of this new opportunity. This also provides us with another avenue to provide holistic insurance solutions for our customers.”

Annuity Service Provider is an IRDA-registered insurance company empaneled by PFRDA for providing Annuity Services to NPS subscribers upon their exit from the system. ASPs will be responsible for managing the funds (allocated for buying annuity) and payment of the pension after a subscriber attains the age of 60.