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How transparency has evolved in 4G ULIPs

New Age ULIPs have come with a sea change and eradicated almost all the pain points of older version of ULIPs. Transparency in ULIPs is one major factor which allows customers to be constantly engaged with their portfolio. They can choose to know where their funds are invested, what are the expected returns and a lot more.

Here is the transcription of a video in which Anuj Mathur, MD and CEO, Canara HSBC Oriental Bank of Commerce Life Insurance talks about transparency in New Age ULIPs.

Vivek Law – On the transparency piece, there are still perceptions that the portfolio is not disclosed, we don’t get to know, it’s opaque and so on. Changes have happened on that front. There was a time when portfolios were not disclosed or maybe they were disclosed ones in six months or once in a year. How has the transparency element changed and unlike mutual fund are you still not in a position to disclose 100% of the portfolio or disclose the 100% of the portfolio on a monthly basis.

Anuj Mathur – Right! So, the transparency is as good as mutual funds. On monthly basis, we publish our fact sheet, so we disclose our entire portfolio. We decided that we will provide details of the top ten but if the customer is interested then we will give the entire detail. So, that option is also available but roughly 80 to 85% of the portfolio is invested in top ten, which is available and if a customer is interested in further details then providing that is not a problem. The investment objective is mentioned, the risk appetite is mentioned, the returns are mentioned, and returns vision benchmark is also disclosed. 4G ULIPs are as transparent as the other financial products in the market. I think it’s a sort of a misconception now because people have the old memories about non-transparency in ULIPs but today if you look at the online ULIPs everything is available in click of the mouse.

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