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Edelweiss Life sees bancassurance growth accelerating in two years, targets 75%+ persistency: Sumit Rai

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Edelweiss Life sees bancassurance growth accelerating in two years, targets 75%+ persistency: Sumit Rai

Edelweiss Life sees bancassurance growth accelerating in two years, targets 75%+ persistency: Sumit Rai

The insurer's 13th-month persistency is around 70%; it is targeting 72–73% this year and over 75% next year. It also expects the bancassurance channel to remain an important growth driver despite uncertainty around the impact of IRDAI's proposed distribution reforms.

Edelweiss Life Insurance expects bancassurance to remain a key growth driver over the next two years, with the insurer anticipating a stronger contribution from the channel as the distribution landscape evolves amid proposed regulatory changes. While the company sees limited immediate disruption from IRDAI 's proposed commission reset, it expects the impact on distribution models to play out over the next 12–18 months, Sumit Rai , CEO, Edelweiss Life Insurance , told ETBFSI in an interview. The insurer is also looking to improve persistency , with its 13th-month persistency currently at around 70%. Rai attributed some of the pressure to higher surrender values and said the company is targeting 72–73% persistency by the end of the current fiscal year and more than 75% in the following year. He also discussed the insurer's product mix, capital requirements and its path to profitability. Advt

Here are the edited excerpts from the interview: Q. Edelweiss Life has targeted profitability in FY27. How close are you to achieving that? Sumit Rai: We will break even this year. We will be profitable this year. Break-even is a function of two things. It is a function of revenue growth, how much you are growing revenue, and it is also a function of better cost management.


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