Kolkata, Feb 27 (IANS) Private insurer Bajaj Allianz Life Insurance Company is expecting that the share of Unit Linked Insurance Plans (ULIPs), as a proportion of its total sales, will increase in the coming years, said an official here on Tuesday.
“The overall sale of ULIPs is likely to gain pace for the industry and we expect it to grow relatively faster for us depending on how the markets perform,” said company’s Chief Investment Officer Sampath Reddy.
According to Reddy, the long-term capital gains tax on equity is likely to give a thrust to ULIP sales.
ULIPs currently account for 74 per cent of the insurer’s total product mix. It has nearly 50 per cent share in the company’s total assets under management, which stood at around Rs 52,000 crore as on January 2018, he said on the sidelines of the launch of its new ULIP plan – Goal Assure.
The company currently has six ULIPs and four traditional plans in its portfolio.
ULIPs, that had drawn the ire of the insurance regulator IRDAI for being rampantly mis-sold, turned more investor-friendly post-2010, when the regulator capped expenses.
The expense ratio on ULIPs has since come down, Reddy added.