H O M E Dear All, Heartiest Congratulations to each and every member of the SBI Life Family as our company has been ranked as the most trusted Life Insurer, amongst Pvt. Players by The Economic Times Brand Equity Most Trusted Brands Survey. Persistent efforts for improving services, that invoke confidence amongst the consumers and Quality Consciousness are what has made this achievement possible. In this issue of Competition Update we bring to you the updates for the month and latest industry business analysis. Also we bring to you the competitive analysis of Smart Money Back Insurance with similar plans of major competitors and the reasons that makes it a better plan for the customers. Please do continue to write in with your feedback and/or queries to innovation@sbilife.co.in. For Internal Circulation Only
MARKET SNAPSHOT Latest Launches Traditional Reliance Guaranteed Money Back Plan: RP non participating Money Back with Guaranteed Loyalty & Maturity Additions Edelweiss Tokio Life: Education Funding: Non participating Guaranteed Endowment Product Edelweiss Tokio Life Protection: Pure term plan with non-smoker and high SA rebates Edelweisss Tokio Life Income Replacement: Non-participating plan with monthly payouts Bharti AXA Triple Health Insurance: Non-linked regular premium health plan with Return of Premium Option Latest Launches ULIPs I Pru Elite Life: High Ticket SP & 5 Y PPT plan with Loyalty Additions and Rs. 2,00,000/- as minimum annual & Single premium I Pru Elite Wealth: High Ticket SP & 5 Y PPT plan with Loyalty Additions and Rs. 5,00,000/- as minimum annual & Single premium Edelweiss Wealth Accumulation plans with Guaranteed Additions with RP & LPPT options» Wealth Accumulation Cover Plus: Death Benefit of SA plus Fund value» Wealth Accumulation Accelerated Cover: Death benefit is higher of SA or Fund Value» Wealth Accumulation Comprehensive Cover: Death benefit is SA plus Fund value Plus Income protection benefit
INDIAN LIFE INSURANCE (FY 11-12 Up to Aug 11)» Industry s Total New Business Premium for FY 11-12 Up to August 11 (Rs. 40,653 Crs) dropped by 23% when compared to FY 10-11 Up to August 10 (Rs. 52,749 Crs)» LIC which commands 76% of the industry s share has shown a degrowth of 21% with (Rs 30,912 Crs from Rs. 39,085 Crs) -14% -42% -17% -42% -12% 2,049 2,390 1,502 2,591 1,133 1,372 1,233 717 675 771 SBI Life ICICI HDFC Bajaj Max YTD FY 2011-12 YTD FY 2010-11 Rank (Private Market) FY 11-12 Up to August 11 (% Private share) FTM August 11 (% Private share) 1st 2nd 3rd 4th 5th SBI Life Rs. 2,049 Crs (21.03%) SBI Life Rs. 449 Crs (19.10%) ICICI Prudential Rs. 1,502 Crs (15.43%) ICICI Prudential Rs. 382 Crs (16.23%) HDFC Standard Rs. 1,133 Crs (11.63%) HDFC Standard Rs. 306 Crs (13.00%) Bajaj Allianz Rs. 717 Crs (7.37%) Bajaj Allianz Rs. 174 Crs (7.41%) Max New York Rs. 675 Crs (6.93%) Birla Sun Life Rs. 139 Crs (5.92%)
SBI LIFE PERFORMANCE ANALYSIS Individual New Business Upto August 11 (Growth) 63% 33% 15% Group New Business Upto August 11 (Growth) 50% 503 41% 481 17% 777 775 1761% 88% 528 5% 129 93 89 54% 355 54% 145 70% 46 1,019 14% 355 178% 241 4962% 17% 149% 32% 20% 35% 102 164 142 76 76 47 SBI Life ICICI HDFC Max Bajaj 983(-27%) 906(-57%) 868(-28%) 617(-14%) 499(-54%) SBI Life ICICI HDFC Bajaj Kotak 1,065(2%) 596(19%) 265(66%) 218(44%) 123(27%) Individual RP Individual SP Group RP Group SP Individual New Business Performance Upto August 11 Vs Up to August 10 SBI Life stands 1st among private players in Individual New Business despite showing a degrowth of 27% Regular Premium registered a degrowth of 50%, whereas, the Single Premium grew at 41% Group New Business Performance Up to August 11 Vs Up to August 10 SBI Life ranks No.1 amongst private players for Group New Business, which shows a growth of 2% Regular Premium Business has shown a drop of 70%, but Single Premium Business grew at 15% April May June July August YTD FTM 10 185 Crs 443 Crs 348 Crs 563 Crs 851 Crs 2,390 Crs FTM 11 197 Crs 394 Crs 298 Crs 710 Crs 449 Crs 2,049 Crs Growth 6.25% -10.95% -14.46% 26.13% -47.20% -14.29%
FUND PERFORMANCE - SBI LIFE Vs MAJOR COMPETITORS (as on 30th September 11) ULIP Funds Performance 1 Y CAGR (Compound Annual Growth Rate)* ULIP Funds Performance 2 Y CAGR (Compound Annual Growth Rate)* -14.4% 6.4% 6.0% 6.6% -16.9% -12.8% 7.0% -10.3% 4.7% -10.9% Equity Fund Bond Fund Balanced Fund -7.3% SBIL ICICI Pru HDFC Standard Bajaj LIC ULIP Funds Performance 3 Y CAGR (Compound Annual Growth Rate)* -3.7% -5.2% -7.9% -9.1% 2.4% 0.9% 5.6% 3.9% 1.1% 6.9% 5.9% 7.1% Equity Fund Bond Fund Balanced Fund 8.0% 4.8% SBIL ICICI Pru HDFC Standard Bajaj LIC NAV Guarantee Fund Performance - Highest NAV* 11.3% 9.3% 12.4% 15.1% 10.7% 10.2% 8.2% 9.9% 11.1% 9.3% 8.9% 9.6% 12.1% 9.2% 11.7% Flexi Protect 92% Flexi Protect II 31% Platinum+ Fund I 29% Platinum+ Fund II 82% Wealth Plus 11% Max Gain 15% NAV Guarantee Fund 18% Pinnacle 24% 1.9% 4.2% 5.8% 2.7% 0.9% Equity Fund Bond Fund Balanced Fund Equity Fund Bond Fund Balanced Fund SBIL ICICI Pru HDFC Standard Bajaj LIC Funds Considered for Comparison SBIL ICICI Pru HDFC Bajaj LIC SBIL Equity Fund Ipru FlexiGrowth Fund HDFC Equity Managed Fund Bajaj Equity Plus Fund LIC Market Plus 1 Growth Fund SBIL Bond Fund Ipru Protector Fund HDFC Secure Managed Fund Bajaj Debt Plus Fund LIC Market Plus 1 Bond Fund SBIL Balanced Fund Ipru Balancer Fund HDFC Balanced Managed Fund Bajaj Balanced Plus Fund LIC Market Plus 1 Balanced Fund SBI Life Birla LIC Bajaj Reliance I-Pru
SBI LIFE SMART MONEY BACK INSURANCE Vs COMPETITORS Product Name Plan Type Min./Max. Entry Age Policy Term Min. / Max. SA Total Survival Benefit SBI Life- Smart Money Back Insurance Participating 14/45-58 Years (depending on Term) 12/15/20/ 25 Y Rs. 75,000/No Limit Option 1(12 Y Term)- 110% SA + VB Option 2(15 Y Term)- 115% SA + VB Option 3(20 Y Term)- 120% SA+VB Option 4(25 Y Term)- 125% SA +VB Participating 12/60 Years 10/15/20/25/30 Y Not Mentioned Guaranteed Additions None None None Death Benefit Riders Full SA + VB 3 Riders HDFC- Money Back Plan 100% SA + Attaching Bonus Full SA + Attaching Bonus 4 Riders LIC - Jeevan Surabhi 15/20/25 Plans Participating 13 / 45 or 50 or 55 (depending on Term) 15/20/25 Y (12/15/18 PPT respectively) Rs. 50,000 / No Limit 100% SA + VB Full SA + VB 1 Rider (only during PPT) Aviva Money Back Plan Participating (from 4th Y) 12-15/49-58 Years (depending upon term) 12/15/18/21 Y Term 12/15 Y - Rs. 50,000/- Term 18/21 Y - Rs. 75,000/- For 1st 3 Years at Rs. 40 per 1,000 SA 120% SA + Guaranteed Additions + VB Full SA + Guaranteed Additions+ Bonus 1 Rider Rebates High Sum Assured None None High Sum Assured
SBI LIFE SMART MONEY BACK INSURANCE Vs COMPETITORS Premium Comparison for Rs 5,00,000/- SA and 15 Year Term for different Ages 42,850 44,730 49,025 52,035 42,935 44,910 49,130 52,859 43,235 45,320 49,380 54,314 43,740 46,080 49,855 56,667 Age 25 Y 30 Y 35 Y 40 Y SBIL HDFC Aviva LIC SMART MONEY BACK INSURANCE - A BETTER PROPOSITION 4 Plan Options with wider range of Age of Entry Guaranteed Survival Benefit ranging 110% to 125% of SA Three rider option available for comprehensive coverage» Preferred Term Rider» Accidental Death Benefit Rider» Accidental Total and Permanent Disability Rider Rebate for High Sum Assured Lower Premium Rates
SBI LIFE - SMART ELITE Vs I PRU ELITE LIFE Plan Option 2 1 Policy Term 5-20 Yrs 10 30 Years PPT SP /LPPT ( 5 /8/ 10 Yrs) SP /LPPT ( 5 Yrs) Premium Payment Modes Yearly / Half Yearly/ Quarterly / Monthly / Single Pay Annual / Single Pay Min Premium (Annual) Top Up Premium Guaranteed Additions LPPT : Rs. 1,50,000/- SP : Rs. 2,00,000/- Not Available Not Available Rs. 2,00,000/ - Available Maturity Benefit Fund Value Fund Value Death Benefit Premium Allocation Charge Policy Admin Charge Rider Gold Plan : Higher of SA or FV Platinum Plan: SA and FV LPPT : Y1 Y5: 3% SP : 2% LPPT : Rs. 60/- p.m. SP : Rs. 50/- pm SBI Life Smart Elite Accidental Death Accidental Total & Permanent Disability Loyalty Additions (as % FV) 6 10 Years 0.25% 11 Y onwards 0.60% Higher of SA or FV LPPT: 3% of Premium SP: 3% of SP For 1st Five Years Only LPPT: Rs. 500/- pm SP: Rs. 60/- pm NA ICICI Pru Elite Life Smart Elite is a better option as It provides more plan options Gold (Plan Benefit is higher of SA or FV) and Platinum (Plan Benefit is SA + FV) to choose from. Ipru s Plan has only one option to choose from. The minimum premium to enter the plan is lesser compared to IPru s Elite Wealth. Additional Riders are available.
SBI LIFE - SMART ELITE Vs I PRU ELITE WEALTH SBI Life Smart Elite ICICI Pru Elite Wealth Plan Option Policy Term 2 5-20 Yrs 1 10 30 Years Smart Elite is a better option as PPT Premium Payment Modes Min Premium (Annual) Top Up Premium Guaranteed Additions Maturity Benefit SP /LPPT ( 5 /8/ 10 Yrs) Yearly / Half Yearly/ Quarterly / Monthly / Single Pay LPPT : Rs 1,50,000/- SP : Rs 2,00,000/- Not Available Not Available Fund Value SP /LPPT ( 5 Yrs) Annual / Single Pay Rs 5,00,000/ - Available Loyalty Additions (as % FV) 6 10 Years 0.25% 11 Y onwards 0.60% Fund Value It provides more plan options Gold (Plan Benefit is higher of SA or FV) and Platinum (Plan Benefit is SA + FV) to choose from. Ipru s Plan has only one option to choose from. Death Benefit Premium Allocation Charge Policy Admin Charge Rider Gold Plan : Higher of SA or FV Platinum Plan: SA Plus FV LPPT : Y1 Y5: 3% SP : 2% LPPT : Rs. 60/- p.m. SP : Rs 50/- pm Accidental Death Accidental Total & Permanent Disability 2 Higher of SA or FV LPPT : Y 1- Y 5 : 2% SP : 3% For 1st 5 Years only - LPPT : Rs. 500/- p.m SP : Rs 60/- pm None The minimum premium to enter the plan is lesser compared to IPru s Elite Wealth. Additional Riders are available. Watch out this space for continuous competition updates & analysis along with comparisons of our products with market offerings.