Reliance Life Insurance plans to come up with a new pension plan in the next two months, a top company official has said.
This will be a pension accumulation plan and the product has already been filed with the Insurance Regulatory and Development Authority (IRDA) for approval, Malay Ghosh, President and Executive Director, Reliance Life Insurance, told Business Line .
“We are also giving capital guarantee and an option to take debt, equity or bond whatever is chosen by the policyholder.
“We are also giving a fund which we will be managing depending on the life-stage of the policyholder”.
Ever since IRDA came up with revised pension product guidelines and removed the 4.5 per cent return guarantee requirement, many private insurers have looked at offering pension plans.
Capital requirement
On capital raising to fund business growth, Malay Ghosh said that the company was comfortable on the capital front for now.
He also said that the shareholders would look at pumping in fresh capital if an opportunity for acquisition were to come as a result of any consolidation in the life insurance industry. “As of now, there is no proposal on the table.”
Meanwhile, to address the issue of insurance advisors exiting the industry, the company has decided to introduce a fixed income system for insurance agents under a new format called ‘career agents’.
The idea is to provide a minimum fixed salary to agents in order to infuse a sense of security and professional commitment, said Malay Ghosh.
Reliance Life plans to hire 5,500 career agents across 200 branches by the end this financial year.