for the economy. We hope this to get recognised by the finance minister, who will give specific exemption on the personal investment side. Life Insurance is covered under Sec 80(C), where there are so many competing instruments, including government funds and housing loan repayment, which most of us do. All that leaves almost nothing on the table for life insurance to be specifically exempted.
What would be your capital requirement in the coming year?
At present, we are adequately capitalised. We have R2,127 crore of the capital invested in the business, which runs up to a solvency margin of 551%. That means we have three times more capital than required. We are now profitable and have been generating surplus. Currently, we don’t see requirement of new capital in the company.
Bancassurance has been delayed. What is your stand on the issue?
We certainly expect more consultation. There are many views. Some companies feel this is the right thing to do and some companies believe banks really are not sellers of long term-savings and protection. They are good sellers of shorter tenure investment products. But what does insurance really stands for: Long-term savings and protection to let banks do would require specialisation and I am not really sure they have the commitment to do that separately.