Shriram Life Insurance Company Gets Empanelled As An Annuity Service Provider
Shriram Life Insurance receives a certification by the PFRDA to be an annuity service provider. Read on to learn more details.
Shriram Life Insurance Company (SLIC) has been approved by the Pension Fund Regulatory and Development Authority (PFRDA) to serve as the NPS scheme's annuity service provider. The National Pension System's maturity proceeds' annuity component will be easier to administer for the insurance company thanks to the empanelment (NPS).
Further, with the PFRDA's accreditation, SLIC will be able to increase the number of NPS subscribers to its annuity plan. With almost 1.5 crore NPS subscribers and more than ₹7 trillion in assets under management (AUM), SLIC's accreditation as an ASP will enable it to mobilise 40% of the NPS maturity money, which will be available for investment in annuity schemes.
Immediate Annuity Plus is SLIC's annuity plan. It provides retirees with numerous options so they can live their life in the same financial circumstances as previously. And after a subscriber turns 60, ASPs will be in charge of managing the money (assigned for purchasing annuities) and paying the pension.
Casparus Kromhout, MD & CEO of Shriram Life Insurance Company, stated in a press conference following the PFRDA certification that, “Shriram Life has a well-priced immediate annuity product and a robust fund management framework. With these, we are gearing up to make the best use of this new opportunity. This also provides us with another avenue to provide holistic insurance solutions for our customers.”
In India, annuity premiums are mobilised at a rate of more than 25,000 crores annually. This opportunity will only grow as NPS memberships get older and subscribers retire over the years. Customers will also be able to select from a variety of insurance companies that offer lucrative annuity plans based on their requirements and way of life.
A registered insurance business with the IRDA that has been appointed by PFRDA to provide annuity services to NPS subscribers upon their departure from the system is the annuity service provider.