The Budget proposal to increase in the tax-free income limit to ₹12 lakh will raise the disposable income of middle- and low-income households, enabling them to buy more in insurance savings and protection policies, according to Shriram Life Insurance managing director and CEO Casparus JH Kromhout.
“The segment we operate in does not invest for income tax benefits,” Casparus said.
You still need EPF, NPS, insurance
While the private life insurance industry typically targets high-income customers with an average annual premium of ₹90,000, Shriram Life operates in a different space. The company’s average ticket size for individual policies stands at ₹20,000 per annum. primarily serving the rural and middle-income segments and first-time insurance buyers.
“We are focused on the segment with ₹5-15 lakh of annual income per family. This segment will have more cash available now. We see it as a very positive move,” Casparus said.
Shriram Life Insurance, promoted by Chennai-based Shriram Group and Africa’s Sanlam Group, reported a 21% year-on-year growth in total premium to ₹2,782 crore for the April-December 2024 period. Its retail new business surged 49% to ₹865 crore while group business premium rose 17% to ₹1,209 crore.
Retail new business premium has grown steadily―24% in FY23, 39% in FY24 and 49% in the first nine months of FY25. “I don’t expect the 49% growth to sustain for the full year. We anticipate a 40-45% growth,” Casparus said.
On the Budget proposal of classifying ULIPs as capital assets, with proceeds taxed under capital gains instead of income from other sources, Casparus said it would have a minimal impact, as ULIPs account for just 9% of the company’s product mix.
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Shriram Life’s gross written premium grew 38% year-on-year to ₹3,580 crore in FY24. Casparus expects a 20% growth in GWP for the current fiscal, noting that growth in the next financial year will marginally moderate due to the high base of the past two years. Shriram Life’s total assets under management stood at ₹12,791 crore. It has an in-force policyholder base of over 1.3 million.
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