Nandini Goswami

Kolkata: Birla Sun Life Insurance, sliding on market share and premium growth over the last three years has made a return to growth.

The private sector insurer grew premium collection 130% to Rs 1,929.9 crore, recording a market share of 8% by the close of 2007-08.

Birla Sun Life, which pioneered unit-linked plans, was left behind by other players in the fiercely competitive market place.

“Yes, in the last two years, there was a perceived slowdown as we were reviewing our strategies,” Anjana Grewal, senior vice president, marketing and communication at Birla Sun Life, said.

Analysts say that a slower expansion plan — both at branches and agency force and the lack of a strong strategy in the face of increasing competition had seen Birla Sun Life lose its market share.

An aggressive expansion plan, still underway, helped the company revert back in the face of competition.

Disclosing the results and strategies undertaken, Grewal said, “While the private insurance sector grew by 84%, our growth was 130%. Tripling market share in one year has been a big achievement.”

“In individual new business, the company recorded 143% growth. By June, the company would have built a network of 600 branches from the earlier 137, in a span of 15 months. While the number of advisors doubled to 1.15 lakh, the sales structure has been realigned as well. We now have eight zones, four each in two definite blocks,”Grewal added.

With new bancassurance tie-ups being a difficult proposition in the life space, the company used the niche customer segment to increase sales.

It also entered into relationships with corporate agencies like Angel Broking and Anand Rathi top further its reach.

Also, new products or funds were launched almost every alternate month through the financial year.

Source : DNA