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SBI Life to double network, aims at Rs 2,000 cr

SBI Life Insurance Co Ltd if looking at doubling the number of its agents from 12,000 to 25,000, writes Suman Layak.

india Updated: Oct 24, 2006 21:45 IST

SBI Life Insurance Co Ltd if looking at doubling the number of its agents from 12,000 to 25,000 by the end of the current financial year.

The managing director of the company, S Krishnamurthy said, "We are looking at doubling our presence and increase our premium income to Rs 2,000 crore by the end of 2006-07."

The company recorded a premium income ofRs 470 crore in 2005-06. This year, the company has managed to grab a 1.9 per cent share of the first-premium market in India.

The company has been relying heavily on bancassurance, which was bringing in 60-65 per cent of the premium. Krishnamurthy said "However, that is going to change as we are going to strengthen our agency network and in future the agents will contribute at least 55-60 per cent of the business."

Krishanmurthy added "Last year around 25-30 per cent of our sales were from unit-linked insurance plans. However, this year we are aiming at ULIPS to bring in 50 per cent of the total income."

The company introduced its first ULIP Plan only in November 2005.

However, SBI Life is also increasing its efforts in training up State Bank of India staff for selling its insurance schemes.

"We want to place qualified trainers in every state capital on our rolls so that they are able to carry on training SBI staff on a continuous basis."

SBI Life wants to carry out focussed insurance training at 1600 SBI branches.

He added that the trainers would also conduct on-site programmes at the branches as well as hold special programmes for the branch managers.

Krishnamurthy said that the company has been earning most of the premium through its bancassurance route from group insurance products.

"We have been offering group insurance to various SBI groups like their car-loan customers or housing-loan customers. Now with more and more SBI bank staffers being trained, they will be able to sell more of our individual products to their customers," Krishnamurthy added.

First Published: Oct 24, 2006 21:45 IST