Dear Stakeholders,
The Indian economy has displayed remarkable resilience in the face of
ongoing geopolitical tensions and supply side disruptions, buoyed by proactive policy
measures and robust domestic demand. The Gross Domestic Product (GDP) grew by 7.8% in the
quarter ending March 31, 2024 and provisionally stands at 8.2% for the FY 2024. India, the
fifth largest economy in the World, is expanding at an annual rate of 6-7% and is expected
to rank third by 2027 after USA and China.
Dinesh Kumar Khara
Chairman
The Insurance Regulatory and Development Authority of India (IRDAI) is
committed to enabling 'Insurance for All' by 2047. As one of the many steps taken to
translate this vision into reality, the IRDAI, has embarked on a path to reform the sector
to increase insurance penetration.
The government's bold reforms agenda, including initiatives to enhance
the ease of doing business, promoting digitalisation and infrastructure development are
some of the strategic imperatives driving investor confidence and laying the foundation
for sustained future growth.
The Insurance Regulatory and Development Authority of India (IRDAI) is
committed to enabling 'Insurance for All' by 2047. As one of the many steps taken to
translate this vision into reality, the IRDAI, has embarked on a path to reform the sector
to increase insurance penetration. The objective is to make insurance accessible and
available by solving inadequate distribution reach using bancassurance channels.
According to Economic Survey 2022-23, insurance penetration in India
has increased from 3.69% in 2018 to 4.57% in 2022, with life insurance penetration being
twice that of the emerging markets and marginally higher than the global average. However,
in spite of demonstrating a healthy compound annual growth rate (CAGR) across lines of
insurance business, the protection gap remains around 90%. This is an outcome of a complex
interplay of factors such as lack of accessibility, affordability and low financial
literacy. These challenges trigger the imperative for transparent, customer-centric
approaches that resonate with individual needs.
By leveraging technological advancements, the industry can reengineer
policies and craft products which resonate with individual preferences and life stages -
all the while ensuring ethical data consumption across the insurance value chain.
Embracing innovation will allow SBI Life to create value-driven, customer-centric
offerings, with product simplicity, transparency in communication across all touchpoints,
robust fraud management system and superior claim settlement experience.
One Purpose. One Vision.
Over the past 24 years, we have seen SBI Life growing and being
instrumental in the overall growth of the life insurance industry. We at SBI Life believe
that with a leadership position in India's private life insurance industry, we have a
bigger role to play in shaping of overall life insurance industry with a larger share of
responsibility and commitment to
IRDAI vision of 'Insurance for All by 2047.' As a responsible life
insurer, your Company walks with the motto of "One Purpose. One Vision." and
plays a vital role in making countless individuals understand the true value of insurance
and provide financial immunity to their families. The Company's single-minded
objective is to empower and educate individuals that insurance is more than just a policy.
It is about trust, reliability and peace of mind. SBI Life is building a robust financial
shield for its customers with insurance solutions embodying the sense of affordability,
accessibility, simplicity and flexibility, addressing their distinct and diverse insurance
needs.
Sustainable Growth
FY 2024 has been another successful year for your Company with robust
performance. The Company recorded a growth of 29% in New Business Premium (NBP),
outperforming the 2% growth recorded by the life insurance industry and 12% growth
recorded by private life insurers, maintaining its leadership position in various
categories amongst private
The Company's single-minded objective is to empower and educate
individuals that insurance is more than just a policy.
It is about trust, reliability and peace of mind. players. VoNB margin
stands at 28.1% for year ended March 31,
2024. Embedded value registered a growth of 27% and Operating Return on
Embedded Value stood at 21.8%. We remain steadfast in our commitment to serving our
policyholders with integrity, empathy, and innovation. Throughout the past year, your
Company has achieved significant milestones. We expanded our product offerings to meet the
evolving needs of our customers and leveraged cutting-edge technology to streamline
business processes and enhance customer experience. Our stringent focus on digital
transformation has enabled us to adapt swiftly to changing market dynamics and deliver
seamless service in a rapidly evolving insurance landscape.
Driving Change through Innovation and Beyond
As customer experiences evolve, we believe that there will be a need to
innovate product offerings and help the IRDAI achieve its vision 'Insurance for All' by
2047.
We will embrace a digital-first approach to sell insurance through
omnichannel, multilingual platforms to leverage and achieve sustainable business growth.
Our strategy will be to address the fundamental issues of the industry
- awareness, affordability, accessibility and trust while transforming the business model
to address the increasing customer needs through a tech-powered, human-centric approach to
create distinct competitive advantage.
By harnessing the power of data analytics, artificial intelligence and
digital platforms, we aim to stay ahead of the curve and continue
We are actively transforming into a fully digital organisation by
integrating cutting-edge technologies, including Artificial Intelligence (AI), Internet of
things (IoT) and data analytics to augment stakeholder's satisfaction to newer heights and
enhance their experience.
272
Robotic Process Automations BOTS Deployed
1,349
Work Tasks Automated to be a trusted partner to our customers in an
ever-changing insurance industry.
We are actively transforming into a fully digital organisation by
integrating cutting-edge technologies, including Artificial Intelligence (AI), Internet of
things (IoT) and data analytics to augment stakeholder's satisfaction to newer heights and
enhance their experience. With our digital tools, we endeavour to empower our employees
and distributors even more, and enhance our operational efficiencies, further improving on
customer satisfaction.
Customer at the Core
The insurance industry is evolving. Customers are informed, demanding
and connected. We need to establish a stronger customer orientation, build deeper
relationships and deliver products at faster pace.
An unwavering commitment to our customer-centric approach remains at
the heart of everything we do.
By understanding and anticipating the needs of our policyholders, we
strive to deliver innovative insurance solutions that not only provide peace of mind, but
also ensures financial security in an increasingly uncertain world. We constantly strive
to exceed expectations and enhance the overall experience of our policyholders.
We are furthering our motto of providing excellent customer experience
by implementing a range of initiatives at every touch point.
This year, 272 Robotic Process Automations BOTS were deployed across
186 processes, which led to the automation of 1,349 work tasks.
Way Forward
Looking ahead, we remain focussed on driving sustainable growth and
delivering long-term value for our stakeholders. By staying agile, adaptable, and
customer-centric, we are confident in your Company's ability to navigate the challenges
and seize the opportunities that lie ahead in the global economic landscape.
India is a "young population nation" with a median age of 28
years, with a good combination and a high share of working population, rapid urbanisation,
rising affluence and focus on financial inclusion, which is set to propel the growth of
India's life insurance sector. Further, the insurance regulator has been playing a
proactive and critical role in amending the regulatory framework to steer positive changes
in the way the industry conducts its business and engages with its customers.
Strategic collaboration between insurers, government, intermediaries
and regulators will be the way forward to realise the full potential of the insurance
ecosystem and drive businesses towards achieving a sustainable growth of the industry.
In conclusion, I take this opportunity to express my heartfelt
gratitude to our shareholders for their unwavering support and trust; to our customers for
their loyalty and patronage; and to our employees for their dedication and resilience.
Together, we will continue to navigate the complexities of the global
and domestic economic landscapes, capitalising on our strengths, and embracing innovation
to create and deliver sustainable value for all our stakeholders.
Thank You.
Best Wishes,
Dinesh Kumar Khara
Chairman