Devika IyerChief Product Officer · Essays & perspective

Chief Product Officer
India
Practice / Perspective

Devika Iyer

Devika Iyer / Published perspectives
No.The ideaSubject / reading
01

India's protection gap is an underwriting problem

Protection and underwriting
5 min read
02

Show the surrender value before the maturity value

Savings product design
5 min read
03

A lapsed policy is a product defect

Persistency
5 min read
Portrait of Devika Iyer

The practitioner

Devika Iyer

In 1994 my father, a mathematics teacher in Thanjavur, fell ill and stopped paying the premiums on an endowment policy he had bought to fund my education. When he asked what the policy was now worth, the answer was a small fraction of what he had paid in. Nobody had cheated him. The policy had been designed for a man who would never miss a year, and it had been sold to him without anyone asking what would happen if he did. I was seventeen, and the letter explaining his paid-up value was the first insurance document I read closely. I have been reading the back pages of policies ever since.

Open to Board appointments · Speaking invitations

Start a conversation
  • 01 / Savings product design and surrender values
  • 02 / Term protection, underwriting and reinsurance
  • 03 / Bancassurance governance with a promoter bank
  • 04 / Persistency and lapse economics
  • 05 / Annuities and interest-rate risk
  • 06 / Product approval and IRDAI filing
Annualised premium equivalent, year to March 2026
₹4,120 Cr
61 per cent through bank branches, 21 per cent through agents
Thirteenth-month persistency, FY2025-26
85.2%
Up from 78.4 per cent in FY2021-22
Mis-selling complaints per 10,000 new policies
17
Down from 41 when I became chief product officer

A life insurance product is judged in its fifth year, not at the counter where it is sold, so I design for the customer who is still paying.

I am the chief product officer of Varunashree Life Insurance Company Limited, a fictional Mumbai-based life insurer listed on the NSE and BSE and promoted by Varunashree Bank Limited, which owns 51.4 per cent. In the year to March 2026 we wrote ₹17,250 crore of gross premium and ₹4,120 crore of annualised premium equivalent, managed assets of ₹1,26,400 crore and earned a value of new business margin of 25 per cent. About three-fifths of our new business comes through bank branches, most of them our promoter's; the rest comes from 38,000 agents, brokers and our own digital channel.

My team of 140 designs every retail product we sell: term cover, fixed-return and participating savings plans, unit-linked plans and annuities. The Appointed Actuary certifies pricing, and underwriting and claims have their own leaders, but the shape of the promise is mine: who a product is for, how it is explained, what the customer receives if they stop paying and how a distributor is paid for selling it. I reached this job through twenty years on every side of that promise: valuing pension schemes in Chennai, pricing policies at an early private insurer, managing a bank's insurance counter and running claims for a microfinance lender's 2.1 million borrowers.

The question I put to each product is what happens in its fifth year. When I became chief product officer in April 2021, more than a fifth of our regular-premium customers stopped before their second premium, and complaints alleging mis-selling ran at 41 for every 10,000 new policies. Thirteenth-month persistency is now 85.2 per cent and those complaints are down to 17 per 10,000. We got there by selling less of some things to some people, and I would make the same choices again.

Older bank customers moved off a plan that did not suit them

From July 2022, customers over sixty buying through our promoter's branches could take a long-pay, fixed-return savings plan only after an affordability check and a recorded verification call in their own language. APE from that segment fell ₹290 crore in a year, and its thirteenth-month persistency rose from 66 to 84 per cent.

Underwriting done before the death claim

Nurse-led tele-medical interviews for bank-sourced term proposals above ₹25 lakh cut the share of early death claims we repudiated for non-disclosure from 19 per cent in 2021–22 to 6 per cent in 2025–26, at roughly ₹1,450 of extra cost per policy issued.

Term cover for people without a payslip

A term plan underwritten on GST returns and consented bank-statement data has issued 1.12 lakh policies to small traders since February 2024. Protection has grown from 9 to 16 per cent of our APE since 2021–22.

Fairer early exits, paid for in the open

When higher early surrender values arrived in 2024, we moved about 30 per cent of first-year commission into trails rather than cut customers' returns by the 0.6 percentage points first proposed. Margin on those plans fell from 34 to 31 per cent, and one partner bank stepped away for nine months.

Current focus

I am preparing a board proposal for a deferred annuity with a return-of-premium option, aimed at self-employed customers who will never have an employer pension. It raises hard questions about long-dated interest-rate risk and how much of it we can hedge.

Conversations I welcome

I am not looking to leave Varunashree. I would consider one independent directorship at a listed, consumer-facing company with no insurance-distribution link to my employer, joining its Risk Management and Stakeholders Relationship Committees. My employer's board would need to consent, and a conflicts review would come first; within those limits I could commit about twenty-five days a year. I also accept a few invitations to speak to product, actuarial and consumer-protection audiences.

Beyond the page

The record behind the perspective.

In the boardroom

  • Kuralvazhi Financial Literacy FoundationNon-executive director of a not-for-profit Section 8 company; chair of its programme committee · 2022–present

Formation

  • Bachelor of Science in MathematicsMarudham College of Arts and Science · 1998
  • Master of Science in StatisticsPazhaverkadu Institute of Statistics · 2000
  • Executive Post-Graduate Diploma in Management (part-time)Navalur School of Management · 2010
Devika's quarterly report is the paper our committee reads first, because she shows us the cohort that is failing before she shows us the average. When she proposed restricting sales to older customers in our own promoter's branches, she put the lost premium on the first page and let us decide with it in front of us.
Ravindra BhosekarFictional independent director and chair of the policyholder protection committee, Varunashree Life Insurance Company Limited
The full record ↗

Contact

I am not looking to leave Varunashree. I would consider one independent directorship at a listed, consumer-facing company with no insurance-distribution link to my employer, joining its Risk Management and Stakeholders Relationship Committees. My employer's board would need to consent, and a conflicts review would come first; within those limits I could commit about twenty-five days a year. I also accept a few invitations to speak to product, actuarial and consumer-protection audiences.

  • Board appointments
  • Speaking invitations