We Have Strengthened Our Risk Control Unit To Tackle Challenges: MD & CEO, IndiaFirst Life

You are breaking barriers as a woman CEO in the Indian private life insurance space leading your company to an IPO. Can you share your mantra for success?
My focus is not on the IPO at the moment, as we have filed DRHP and are awaiting developments. Instead, I emphasise the significance of women in leadership. Data shows that women bring empathetic and inclusive leadership, qualities that are increasingly valued. My mantra is to be true to my beliefs, not allowing external benchmarks to compromise my core qualities.

How do you navigate the challenge of being judged by male benchmarks?
As a leader, I acknowledge that there is no predefined benchmark for me. The challenge lies in not letting external benchmarks affect my core qualities and convictions. It is about maintaining true beliefs while meeting leadership expectations.

You've advocated against assessing employees based on office hours. How has this impacted the perception of women in the workplace?
I believe in assessing individuals based on competencies, not gender. In my early leadership, I challenged the norm of evaluating based on office hours, understanding the mental space occupied by women managing both work and home. This approach has resonated with both men and women in the organisation.

The finance industry has seen a rise in women CEOs. How do you address the misconception that women lack mathematical skills?
There is still a minority of women CEOs in the finance industry. The perception that women lack mathematical skills is a bias that needs correction through data and reality. It's about showcasing more examples of successful women in finance to challenge ill-informed biases.

Did you face unique challenges as a woman leader in your career?
Challenges, in retrospect, may seem less daunting. However, during the journey, the biggest challenge was within – overcoming personal conditioning and silencing self-critical voices. The key is to believe in oneself and challenge biases that may hinder progress.

How do you see the trends in the life insurance sector evolving?
The sector has seen a shift towards non-par products due to high-interest rates, allowing for longer-term guarantees. With market improvements and plateaued interest rates, there's a growing interest in unit-linked insurance plans (ULIPs) for better returns. The awareness of risk post-COVID seems to have diminished, impacting the uptake of term policies.

Why do some Indians hesitate to invest in term plans?
Well, it seems like many Indians are hesitant to invest in term plans because they're always on the lookout for returns on their investment. When putting in money, they want to know what they'll get back after five or ten years. This focus on returns might be why term plans don't seem as attractive to some people.

What are some reasons for people, not prioritising insurance?
It is a bit of a mixed bag. Some people just don't believe anything bad will happen to them, while others have a sort of risk middle ground. It's like buying a helmet but not wearing it or not bothering with seatbelts despite fines – it's more about risk attitude than concerns about the return on investment.

The digital age has brought both convenience and challenges. How is your company dealing with the increasing number of digital frauds, such as deep fakes?
We have witnessed a surge in digital fraud, especially with deep fakes and false identities. To counter this, we've strengthened our risk control unit, actively implementing information security measures. Adapting to the virtual world's challenges is crucial, and we scrutinize everything with suspicion. Reporting and acting against fake entities are part of our strategy to minimize the impact of these digital frauds.

Can you share company's performance in the last quarters and the first half of the year? Any notable numbers?
In the first half, we adapted our distribution strategy to align with customer needs. There was a substantial shift in our product mix, leading to significant growth in Value of New Business (VNB) and Embedded Value (EV). The numbers are available, and we have posted strong profit figures for the quarter and the half-year ending in September.

You mentioned a rise in annuity plans. Why do you think there has been a shift, and what is your focus on these plans?
We have observed a significant increase in annuity plans. Non-participating guarantees and the assurance of fulfilling commitments make annuity plans attractive. With over two-thirds of our customers being non-salaried, creating their pension plans is crucial. The substantial rise in annuity plans reflects the growing awareness of the need for long-term financial security.

How do you see the interest of millennials in insurance and investment products? Are there specific products tailored for them?
Insurance is typically for the long term and appeals to those who understand risks associated with mortality, morbidity and financial volatility. Life-defining moments like education loans, marriage, and having children often prompt individuals to consider insurance. It is not just about millennials but anyone who acquires a sense of responsibility.

Could you clarify IndiaFirst Life's stance on telesales? Is there a plan to shift away from it?
We do not have a third-party tele-calling business. Our strong Bancassurance, with Bank of Baroda and Union Bank of India, covering almost 20 per cent of the country's population, remains a key focus. We aim to continue investing in the penetration of banks while also growing our agency channel. Bank assurance will always be a predominant channel, given its sheer size and potential.

As the CEO, what changes have you witnessed in IndiaFirst Life since joining, especially concerning organizational culture?
Organisational culture is vital. We live our values – “Be Honest. Be Helpful. Do More. Think New.” to foster a “Happy. Passionate. Connected” work culture. This encourages our employees bring their whole selves to work, which is evident in events like Family Day. The alignment of individual and organizational interests is crucial for success, and we have strived to create an environment where both thrive.