Hdfc Life Insurance Co. Ltd. · NSE:HDFCLIFE

Hdfc Life Insurance — Kotak India Conference 2018

22 slides from Hdfc Life Insurance's conference presentation, May 28, 2018

  1. Slide 1: Riding the Crest: Product Innovation and the Way Forward

    Riding the Crest: Product Innovation and the Way Forward Kotak India Conference | May 28,2018 | Mumbai Amitabh Chaudhry, MD & CEO, HDFC Life

  2. Slide 2: Agenda

    Agenda 1 Growth opportunity in Life Insurance 2 Innovation in product design and product distribution 3 Product innovation at HDFC Life 2

  3. Slide 3: Life insurance industry on a growth trajectory with private players gaining share

    The life insurance industry is on a growth trajectory with private players gaining market share 450 Sensex Private Players LIC 4 450 Sensex Private Players LIC 40,00 400 3 400 35,00 350 350 3 304 298 30,00 Individual WRP in Rs. Bn 304 292 287 298 300 288 Individual WRP in Rs. Bn 273 292 285 287 300

  4. Slide 4: India's high protection gap presents a huge growth opportunity

    India’s high protection gap presents a huge growth opportunity Life insurance Life insurance density Protection gap (2014) penetration (2016) US$ (2016) 7,066 16.7% 16.2% 92.2%88.3% 78.4% 73.3% 72.5% 70.2% 3,599 2,895 56.3% 56.0% 7.2% 2,803 5.5% 3.7% 3.2% 2.7% 2.3% 298 16.4% 222 190 47 India India H

  5. Slide 5: Several changes in recent years to support changing business needs

    The last few years saw several changes to support the changing needs of the business Product Strong growth Focus on Regulations led by Banca margins •Higher branch penetration & activation •Protection focus •Expense of Management •Open architecture •Expense efficiency to improve •ULIP & Non-Par Regu

  6. Slide 6: The changing landscape has opened a world of opportunities

    The changing landscape has opened a world of opportunities Financialization Digitalization Networks / Ecosystems • JAM Trinity – Universal presence of • Movement away from physical bank a/c; Aadhaar seeding for • Evolution of payment systems, savings to financial savings as a % availing products & s

  7. Slide 7: Opportune time to seize the initiative

    Opportune time to seize the initiative Stable and progressive regulatory environment • Guidance related to management expenses, product structures, distributor commissions in place • E-commerce and web aggregator regulations have set the stage for the next phase of growth Insurers well-positioned to

  8. Slide 8: Regulatory guidance has shaped product design

    In the past, regulatory guidance has shaped product design Key guidelines and impact ULIP regulations (FY11) Guidelines on pension Linked and Non-linked products (FY12) products regulations  Increased lock-in period for (FY14) ULIPs from 3 years to 5 years,  Scrapped the 4.5% guaranteed annual ret

  9. Slide 9: Need to adopt a nimble, three-pronged product strategy

    Need to adopt a nimble, three-pronged product strategy 1 Products that offer attractive customer value proposition 2 Innovative sales process for product distribution 3 Depth and breadth of distribution 9

  10. Slide 10: Product innovation should meet objectives of contemporary life insurance

    Product innovation should meet the objectives of contemporary life insurance Critical objectives to be met 1 Improve customer value proposition 2 Protect policyholder interest Increase life Enhance customer 3 insurance penetration 4 satisfaction through product suitability Competitive Nurture non- 5

  11. Slide 11: Product design reflects the urge to meet the objectives

    Product design reflects the urge to meet the objectives Improved  Low cost ULIPs with minimal charges customer value  Higher guarantees on non-participating products proposition  OTC – Pre-approved sum assured for instant issuance Cater to  Low-cost pure protection products latent  Fixed benefi

  12. Slide 12: Product sales process is also being re-imagined

    Product sales process is also being re-imagined From the traditional distribution at present.. Branch Partner touch point Direct Production Distribution Marketing Customer ..to being present where the customer is Payment avenues Digital channels •Wallet •Portal , mobile apps •UPI/BHIM •Social media

  13. Slide 13: Ecosystems and platforms relevant across the sales process

    Ecosystems and platforms will be relevant across the sales process Marketing and consumer insights Payments Physical access Customer Risk Sales data management platform Note: Brands depicted are illustrative to explain the concept 13

  14. Slide 14: Regulatory intervention can drive product innovation (1/3)

    Regulatory intervention can play a key role in driving product innovation (1/3) 1 2 3 Outcome based Additional support to Investment norms for regulations pension business life insurance  Move towards regime of  Consistency with NPS on  Create level playing field output parameters based commutati

  15. Slide 15: Regulatory intervention can drive product innovation (2/3)

    Regulatory intervention can play a key role in driving product innovation (2/3) 4 5 6 Widen scope for Level playing field for Product enablement insurers’ activities health business  Allow distribution of non-  Current norms severely  Reduction in ‘Go-to- life & health products and restrict parti

  16. Slide 16: Regulatory intervention can drive product innovation (3/3)

    Regulatory intervention can play a key role in driving product innovation (3/3) 7 8 9 Discontinuance Enable reinsurance Increase persistency benefits on regulations to mitigate levels traditional products risks efficiently  Phased increase in  More flexibility in the  Cumulative limits for surren

  17. Slide 17: At HDFC Life, product innovation acts as a key differentiator

    At HDFC Life, product innovation acts as a key differentiator Credit Protect: Protection against loan worries with minimum documentation Loan 1 Industry-leading Low-cost protection product protection protection series - Click2Protect 6 Cardiac Care: Protection against 5 18 cardiac diseases Comprehen

  18. Slide 18: Customer-centric products have helped strong premium growth and market positioning

    Customer-centric products have helped us register strong premium growth and market positioning Consistent growth across premium categories1 (Rs bn) 235.6 21% 194.5 19% 66.1 33% 163.1 10% 148.3 23% 49.6 56% 31.9 24% 25.6 52% 10% 122.1 13% 98.3 5% 108.2 93.4 16% 29.3 24% 33.0 13% 36.6 11% 47.4 30% FY1

  19. Slide 19: High-growth avenues and products being developed (1/2)

    We have identified high-growth avenues and are developing products for them (1/2) Opportunity Current product suite Health Insurance  Health insurance offers a sizeable  A series of health products have opportunity in the Indian market as been launched to cater to penetration is low comprehensive

  20. Slide 20: High-growth avenues and products being developed (2/2)

    We have identified high-growth avenues and are developing products for them (2/2) Opportunity Opportunity Current Initiative product suite Retirement/Pension  Demand for retirement policies  Pension Guaranteed Plan to rise with increasing life launched in current year to expectancy, declining birt

  21. Slide 21: Redefining the product sales process to complement smarter products

    We are redefining the product sales process to complement smarter products  Digital forms across  Integration with travel,  Biometric verification different sales processes ecommerce platforms  Straight-through  360 ⁰ customer view  Collaboration with UIDAI processing for ease of documentation

  22. Slide 22: Thank you

    Thank you Superbran

HDFC Life Insurance Company — Kotak India Conference 2018 on 6ix