New Delhi: Shriram Life Insurance Company (SLIC) has been listed as an Annuity Service Provider by Pension Fund Regulatory Development Authority (PFRDA). The insurance major will be able to manage the annuity component of the maturity proceeds under the National Pension System (NPS).
The PFRDA certification will help SLIC to attract more NPS subscribers under its annuity plan. NPS has around 1.5 crore subscribers and more Assets Under Management (AUM) 7 trillion, the listing of SLICs as ASPs will help raise 40% of the NPS maturity amount that will be open for investment in annuity plans.
Immediate Annuity Plus, the annuity plan from SLIC, has options for NPS subscribers which provide flexible options to the retirees to continue their life in the same financial conditions as before.
Annuity premium collection is up in India 25,000 crores per year. This opportunity will increase as the NPS subscriptions mature and the subscribers retire. It will also enable customers to choose from a range of insurance providers that offer rewarding annuity plans as per their needs and lifestyle.
Casperus Kromhout, MD & CEO, Shriram Life Insurance Company said, “Shriram Life has a well priced immediate annuity product and a strong fund management structure. With these, we are gearing up to make the best use of this new opportunity It also gives us another opportunity to provide holistic insurance solutions to our customers.”
Annuity Service Provider is an IRDA-registered insurance company empaneled by PFRDA to provide annuity services to NPS subscribers on exit from the system. ASPs will be responsible for managing the funds (allocated for purchasing annuity) and payment of pension after attaining the age of 60 years.
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