Hdfc Life Insurance Co. Ltd. · NSE:HDFCLIFE
Hdfc Life Insurance — Morgan Stanley Conference 2018
19 slides from Hdfc Life Insurance's conference presentation, Jun 6, 2018
Slide 1: Market opportunity and HDFC Life's differentiated strategy
Market opportunity and HDFC Life’s differentiated strategy Morgan Stanley Conference | June 06, 2018 | Mumbai Amitabh Chaudhry, MD & CEO, HDFC Life This is the sole and exclusive property of HDFC Life. June 6, 2018
Slide 2: The life insurance industry is on a growth trajectory with private players gaining market share
The life insurance industry is on a growth trajectory with private players gaining market share 450 Sensex Private Players LIC 35,000 400 357 30,000 350 304 25,000 Individual WRP in Rs. Bn 292 287 300 288 273 285 278 266 269 262 260 261 245 250 227 20,000 230 Individual WRP in Rs bn Sensex 214 203 2
Slide 3: The last few years saw several changes to support the changing needs of the business
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 •Expense of Management •Protection focus •Open architecture •ULIP & Non-Par Regulations •Expense efficiency to
Slide 4: White spaces, however, continue to exist
White spaces, however, continue to exist Lack of value proposition Non-focus areas for insurers Unmet financial needs Under-served Sub-optimal customer segments operating model Latent needs that are not served Limitations of current distribution Customers beyond the ambit of Complex fulf
Slide 5: Opportunity to penetrate under-served customer segments
Opportunity to penetrate under-served customer segments India life insurance penetration Share of life insurance in household Per capita income ($) (FY08-17) savings (FY13-17) 209 267 305 25% 24% 18% 31% 44% 17% 17% 17% Strugglers (<2300) Gross financial savings of 4.6% the household sector (% 46% 4
Slide 6: Huge gap in fulfillment of certain financial needs
Huge gap in fulfillment of certain financial needs Protection gap (2014) India population (2025E) Life expectancy at birth (# of years) 100+ 92.2% 88.3% 90-94 Female Population Male Population 75.9 78.4% 80-84 73.3% 72.5% 70.2% 70-74 56.3% 56.0% 60-64 71.7 50-54 40-44 16.4% 30-34 20-24 65.5 10-14 0-
Slide 7: Sub-optimal operating models fail to leverage potential opportunities
Sub-optimal operating models fail to leverage potential opportunities Changing landscape presenting Traditional operating models a world of opportunities that need to evolve In India’s internet economy, customer is truly digital Excessive reliance on feet-on-street and branches Partners straddling '
Slide 8: 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
Slide 9: At HDFC Life, we are driving multiple levers to address white spaces effectively
At HDFC Life, we are driving multiple levers to address white spaces effectively Product Customer-centric Revitalization of innovation distribution the core Offer attractive value Redefine the sales Utilize cutting-edge propositions to process to reach a wider technology to make customers to cater t
Slide 10: Product innovation is aimed at meeting the objectives of contemporary life insurance
Product innovation is aimed at meeting 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 Nurtur
Slide 11: A differentiated product suite caters to innate and latent customer needs
A differentiated product suite caters to innate and latent customer needs 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 diseas
Slide 12: Deeper integration with existing partners enables us to improve the customer experience
Deeper integration with existing partners enables us to improve the customer experience 1 2 3 4 Product Quality Front End Sales Integrated Technology Development Management Enablement and Processes Lead management Netbanking, 3 click buy, Joint product Video enabled engines ATM, mobile devel
Slide 13: Our new partners will help us widen our customer base
Our new partners will help us widen our customer base Small Finance banks & Rural innovators Payment apps NBFCs Nine out of ten small finance Comprise rural e-commerce Combined reach of more than banks have life insurance tie- companies, last mile 90 million unique customers ups with HDFC Life
Slide 14: The sales process is also being re-imagined
The sales process is also being re-imagined From the traditional value-chain distribution model at present.. Branch Partner touch point Direct Production Distribution Marketing Customer ..to a customer-centric one Payment avenues Digital channels •Wallet •Portal , mobile apps •UPI/BHIM •Social media
Slide 15: Networks will be relevant across the value chain
Networks will be relevant across the value chain Servicing Marketing and consumer insights Payments Risks and claims Physical management access Customer data Sales platform Note: Brands depicted are illustrative to explain the concept Product Customer- Revitalizat innovation centric dist ion of core
Slide 16: Powerful digital tools are simplifying customer service
Powerful digital tools are simplifying customer service 99%+ claims Customer service is going digital settlement New My Account Email Bot – SPOK • One stop self serve • Automated & solution for information, instantaneous responses 14% reduction transactions and requests in customer complaints Insta-
Slide 17: Unified data and smarter processes to support the digital front end
Unified data and smarter processes to support the digital front end Better lead allocation for Seamless integration new business and through SDKs and APIs renewals Analytics-powered Leveraging robotics: 88 decision making at critical processes automated stages – u/w, claims Unified Smarter data proc
Slide 18: In summary, HDFC Life's differentiators to address industry-wide white spaces
In summary, HDFC Life’s differentiators to address industry-wide white spaces Unmet financial Under-served Sub-optimal needs customer segments operating model Product innovation Customer-centric Revitalization of distribution the core Offer attractive value propositions to Redefine the sales Utilize
Slide 19: Thank You
Thank You Thank You
HDFC Life Insurance Company — Morgan Stanley Conference 2018 on 6ix