Sun Life sees long-term growth with Birla Group: CEO Kevin Strain

Sun Life is betting on India's growing demand for insurance, retirement solutions and wealth management, while exploring opportunities in infrastructure, private credit and real estate. Chief executive officer Kevin Strain spoke with ET's Sangita Mehta at The Economic Times World Leaders Forum about the partnership with Aditya Birla Group, AI-led transformation, bancassurance, mis-selling and the insurer's plans for India. Edited excerpts:

Will Sun Life increase its stake in Aditya Birla Sun Life now that India has allowed 100% foreign ownership in insurance?

India is one of our core Asian markets, and our partnership with the Aditya Birla Group works extremely well. They bring brand recognition, local presence and deep market understanding, while we bring global insurance and asset management capabilities. Our insurance business is growing about 25% annually, and the AMC has crossed $100 billion in assets. India is an excellent long-term market, but we believe the business currently works better alongside the Birla Group than it would on our own. Ownership levels are less important than strengthening the franchise, serving clients and operating the business in the right way.


Which capabilities will AI devalue, and could it reduce demand for actuaries?

I don't see AI as devaluing capabilities. I see it transforming how we deliver services by helping us better understand clients, bring products to market faster and drive efficiencies. But AI is a tool, not a replacement for human judgment.

AI will handle routine tasks and simple transactions, freeing people to focus on areas that require empathy, judgment and human connection. In businesses like life insurance, where clients need support during difficult moments, human interaction remains critical.

How are customer preferences evolving, and will tax benefits continue to drive insurance growth?

Customers increasingly want a holistic financial plan that integrates life insurance, health and critical illness cover, and wealth management. Life insurance continues to protect families during their working years, but it is also becoming important for estate planning and wealth transfer. As people live longer, they need greater health protection and must accumulate enough wealth to fund retirement and other long-term goals. People may now work for about 40 years and need those savings to support another 30-40 years of retirement. That is driving demand for advice that brings insurance and wealth management together. Tax benefits will remain important. Well-designed tax rules can encourage protection, retirement savings and long-term wealth creation, helping people build lifetime financial security.

Given concerns over mis-selling, how do you see the role of bancassurance evolving?

Scale requires insurers to operate across multiple distribution channels, including agency, brokerage, bancassurance and digital. Sun Life has agency and bancassurance across its Asian markets, with 25 bank partners, along with digital and brokerage channels in most markets. The focus must always be on quality. If one channel faces challenges, we can shift emphasis to others. In bancassurance, choosing the right partners is critical. We have been selective, working with banks that are culturally aligned with us and share our long-term thinking.

What role can policymakers and the government play in promoting insurance?

Insurers must develop strong distribution, provide high-quality advice and offer products that help clients achieve lifetime financial security and live healthier lives. Policymakers can support this by aligning regulation with clients' best interests, protection and long-term savings. Financial security is built over a lifetime, including managing savings through retirement, so both insurers and policymakers must remain focused on the long term rather than short-term outcomes.

What are your plans for the Aditya Birla Sun Life AMC business?

We see opportunity to add alternatives, including real estate, private credit and infrastructure investing, which also align with the government's goal of building a stronger India. Globally, we have grown our alternatives business from zero third-party assets in 2015 to more than $200 billion, and about $300 billion, including our general account.

What role can Sun Life play in India's goal of insurance for all by 2047?

Through our distribution relationships, we can bring high-quality products to more Indians and help them achieve lifetime financial security and live healthier lives.