PNB MetLife India Insurance is reportedly gearing up to foray into pension insurance business as part of its strategy to exploit growth potential offered by this segment in the country.
PNB MetLife managing director and CEO Tarun Chugh was quoted by The Hindu Business Line as saying, "We are working on a pension product. We should be launching (it) within next six months. We are keen to enter the pension space."
Chugh, who accepted this new role in February 2014, told the publication that pension requirements were high in India, as nearly 8% of the country’s population is above 60 years of age without any social security and 70% are below 30 years.
"Longevity as a risk is still not understood (in India). Being a young country, there is a huge potential for pension plans as one needs to invest early to build a corpus for retirement years," Chugh added.
Unveiling the business expansion plan, the company said that it will soon start selling an online product and will provide products to meet the four requirements of customer, including family protection, wealth management, child education and retirement.
Apart from boosting its presence through multi-distribution channels, the insurer is concentrating on strengthening its bancassurance and agency sales force.
"A lot of work has been done in the Bancassurance space but we still have a lot to do. We have some 40 per cent penetration into the PNB branches and we are in the process of taking it further using technology", Chugh added.
Image: PNB MetLife India Insurance plans to enter into pension insurance business.Photo: courtesy of Chaiwat/FreeDigital Photos.net.