Leading private insurer Reliance Life Insurance Company (RLIC) today said it will launch 25 new products beginning next year with a focus on 'traditional plans' and provide need-based insurance solution to customers.
RLIC, which is a part of Anil Ambani-led Reliance Group's financial services arm Reliance Capital Limited, said these 25 new products under the new regulatory regime would be launched beginning January 1, 2014, and approvals have been secured from the Insurance Regulatory Development Authority (IRDA).
"We have received most of the product approvals from IRDA and will be launching these over the next three months. We will largely focus on traditional plans and continue to provide simple and need-based solutions to customers," RLIC Chief Executive Officer Anup Rau told reporters here.
Traditional plans will contribute 80 per cent while the unit-linked plans will contribute around 20 per cent to the top-line in the new product environment, he said.
As per new regulatory guidelines, life insurance products have been segmented into three broad categories – traditional insurance plans, variable insurance plans and unit-linked insurance plans.
"Reliance Life Insurance is planning to file more products with IRDA in the next few months to offer a comprehensive product suite across all customer need segments," Rau said.
Reliance Life Insurance will continue to capitalise on its strong agency-driven distribution models and focus on agent productivity to drive growth, he said.
Speaking to reporters, Rau said the company would rely on increasing productivity to increase insurance penetration across the country.
India being a diverse country, local understanding and insight of an insurance agent is a source of comfort for a customer looking at financial planning, he said.
"Moreover, the agency model provides the highest reach for products and services and creates employment generation opportunities.
"However, improving productivity is a key challenge. Our focus is on agent productivity with a view to increasing insurance penetration across the country. This will continue to play a pivotal role in our growth journey," Rau said.
The company has over 80,000 advisors and over 8,000 outlets across India and has achieved over 50 per cent growth in agent productivity as of September 2013.
RLIC is also keen to develop bancassurance partnerships (distribution tie-ups with banks) for enhancing its reach and productivity, as and when the banks start selling products of multiple insurers under the new regulations.
IRDA recently issued guidelines allowing banks to become licensed insurance brokers.
The new model would allow banks to offer a wider choice of products from multiple