The life insurer said its empaneled as an annuity service provider pension Fund regulator will help raise more NPS members under its annuity plan.
“Shriram Life has a well-priced immediate annuity product and a strong fund management framework. With these, we are poised to make the best of this new opportunity.
“This provides us with another opportunity to provide holistic insurance solutions for our customers,” said Kasperus Kromhout, MD & CEO, Shriram Life Insurance Company.
With close to 1.5 crore subscribers under NPS and AUM of over Rs 7 lakh crore in the country, empanelment of SLIC as an ASP will help raise 40 per cent of the NPS maturity amount, which will be open for investment in annuity plans. , it said.
With its Immediate Annuity Plus plan, SLIC has options for NPS subscribers to provide flexible options to retirees to continue their life in the same financial position as they did earlier.
Annuity premium collection in India is more than Rs 25,000 crore per annum.
This opportunity will further expand as NPS subscriptions mature and 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.
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 are responsible for managing the funds (allocated for purchasing annuities) and payment of pension after a subscriber attains the age of 60 years.