In a short span of seven months, Bajaj Allianz Life Insurance Co Ltd (BALIC), a private life insurer, has achieved pole position in the online ULIP space, thanks to its recently launched ULIP product, Bajaj Allianz Life Goal Assure.

Bajaj Allianz Life Goal Assure (Goal Assure), which was launched in February 2018 as an online-only product, has emerged as a blockbuster product for the company, clocking a business of ₹120 crore since its launch, Tarun Chugh, Managing Director and CEO, BALIC, told BusinessLine .

“Goal Assure performance has exceeded our expectations. An important reason is that our fund management has been better and is expected to remain strong,” he said.

Of the eight funds available to a ‘Goal Assure’ customer, there were two that elicited a lot of interest under the Investor Selectable Portfolio Strategy – Accelerator Mid Cap Fund II and Pure Stock Fund II.

Chugh also highlighted that several employees of BALIC had also bought into Goal Assure.

“People who have manufactured the product have bought it and this was sort of a endorsement to the product,” he said.

One of the Unique Selling Propositions of Goal Assure was the aspect of Return of Mortality Charges (ROMC) at the end of the policy term on the maturity date.

“The ROMC benefit – a new category created by us – has fired the online channel for us. We now plan to come up with more variations under ROMC and expand the online ULIP market to help customers meet their long-term life goals,” said Chugh.

The strong show of Goal Assure can be gauged from the fact that the total online sales for BALIC for the entire fiscal year 2017-18 was only ₹40 crore, he said.

In the seven months since February 2018, BALIC’s total revenue was about ₹700 crore, indicating that Goal Assure accounted for over 15 per cent of the sales.

Chugh said that BALIC is hoping to get more millennials to buy into Goal Assure. Already, millennials have taken to Goal Assure, with nearly 70 per cent of the 12,000 policies sold online to people less than 35.

Chugh also said that a significant proportion of sales on came through an aggregator. There were also direct sales from the life insurer’s online platform, he added.

Asked about the future course of action on the online front, Chugh said: “We will not leave the ROMC space. We want ROMC space to increase and also want other players to come in. We want the entire online ULIP universe in the industry to be under ROMC.”

Chugh also said that the life insurer had, through Goal Assure, been able to open the online channel to those who are aged 50 and above. These are the segments that have deep pockets, he said.

Health product

Chugh also said that BALIC will soon launch a health product. This will be a full-fledged health insurance product . “It took us a year to prepare and design the product to take it to the market. It will be launched in a week and cover critical illness. It will not be an indemnity product,” he added.

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