SUD Life to focus on endowment policies, says its CEO

MUMBAI: Star Union Dai-ichi Life Insurance (SUD Life) plans to focus on endowment policies rather than introducing new unit-linked insurance products (ULIPs), a top company official said.

The insurance company has decided to take this "cautious" step following the Insurance Regulatory and Development Authority (IRDA's) regulations on ULIPs, SUD Life's Managing Director and CEO, Kamal Sahay, told reporters here on Thursday

"Under the new regulations, selling pension plans has slightly become a challenge for insurance companies. Hence, we have decided to focus on launching more endowment policies than introducing any new ULIP," Sahay said.

As a part of this strategy, the insurer has launched a new traditional endowment product--Defined Benefit Endowment Plan, which ensures tax-free monthly benefit for 15-years.

The company, which had initially introduced 4 ULIPs is now planning to re-launch them based on the new guidelines of IRDA.

SUD Life has re-launched its two unit-linked insurance products--Dhan Suraksha 3 and Dhan Suraksha 3 Premium, which comply with the new IRDA guidelines, Sahay said. The products would offer protection as well as market-related returns.

"We will not be launching any new ULIP in the coming days considering the challenges posed due to the regulations. But we would definitely venture into this at a later stage," he said.