ING Vysya Life Insurance to launch two new ULIPs

"In the next 6-12 months we will increase share of revenue from unit linked products (ULIPs) to 25 per cent. We plan to launch two more ULIPs by January," ING Life Chief Marketing & Strategy officer UCO Vegter told PTI.

The company is expecting to launch a regular premium ULIP product -- ING Market Shield-- this week.The product balances risk and reward by providing downside protection as well as equity market participation.

"We are awaiting regulatory approval for the other ULIP product, which will be a single premium product. We hope to launch it by January," Vegter said.Further, the company which has a capital base of Rs 1,400 crore, is also planning to launch three more traditional products by the end of March.

Traditional products contribute 85 per cent to the company's total premium collection, with the remaining coming from ULIPs.The company is now aiming to achieve a ratio 75:25 in this regard by next one year, he said.

Asked if the company is planning to launch universal life plans (ULPs) under the revamped guidelines of the insurance regulator IRDA, Vegter said, ING is currently weighing the option and would wait to see how other players are operating.
ING is among the four life insurance companies which sold ULPs till IRDA banned selling of these products in October.

Under the new guidelines issued last month, IRDA has asked insurers to offer a guaranteed return if the policy terms do not entitle the insured to receive a bonus.
Also it has asked insurers to term ULPs as 'variable' insurance policies and has said that policies can be surrendered after the first three years.

"We have written to IRDA seeking some clarification on the new guidelines. We will wait and watch before launching the product," Vegter said.