ICICI Prudential Life Insurance Company has mopped up a premium income of Rs 348 crore (Rs 3.48 billion) for the year ended March 31, 2003, reflecting a 200 per cent growth over the corresponding period last year.
It has sold 2,46,827 policies during the year, against 100,000 policies sold in fiscal 2002.
Total sum assured increase more than six fold to Rs 6,005 crore (Rs 60.05 billion). ICICI Prudential has cornered about 40 per cent of the private sector insurance market, which today accounts for 10 per cent of incremental sales of the entire industry.
ICICI Prudential chief marketing officer Saugato Gupta attributed the growth in performance to its distribution ramp-up, the ICICI brand, its customer-centric focus and its product portfolio.
"People believe in the ICICI brand and with our distribution happening correspondingly, it has helped increase sales," said Gupta.
The private insurer doubled its reach to 25 towns from 12 cities last year. The company's strategy to push need-based selling and tackle the concept of under-insurance in the country further helped it push up the average ticket size with the average sum assured crossing Rs 200,000.
"Our average premium today is Rs 11,500-12,000 against Rs 8,000-9,000 last year," said Gupta.
This, he said, is about 40 per cent higher than the industry average premium. Majority of the 1.2-lakh policies sold by ICICI Prudential in the last quarter of fiscal 2003 were pension and unit-linked plans, said Gupta.
Pension products today account for 25 per cent of its total sales, giving ICICI Prudential an overall industry share of 23-25 per cent.
"Customers are not buying pension products solely to save on tax as our average ticket size is about Rs 12,000," said Gupta.
Under section 80CCC of the Income Tax Act, investment in pension plans up to Rs 10,000 offers taxpayers a direct deduction from one's taxable income.
Gupta added that even as the company has moved to smaller towns and cities, "our ticket size continues to be above the industry average".
This is despite ICICI Prudential continuing to be a mass player and not a niche player unlike some of its counterparts.
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