Hdfc Life Insurance Co. Ltd. · NSE:HDFCLIFE
Hdfc Life Insurance — Morgan Stanley Investor Summit 2021
16 slides from Hdfc Life Insurance's conference presentation, Jun 8, 2021
Slide 1: Protection landscape in India- Past, Present & Future
Protection landscape in India- Past, Present & Future Morgan Stanley Investor Summit | June 08, 2021 Vibha Padalkar, MD & CEO, HDFC Life
Slide 2: Protection – what it means for customers and insurers
Protection – what it means for customers and insurers From a customer’s perspective From the insurer’s perspective Dying early Financial security for family Life Insurers (24) See off Loans Lumpsum Outliving one’s & Liabilities amount - death savings from unexpected illness Falling ill Supplementary
Slide 3: The protection gap in India offers a large opportunity to insurers
The protection gap in India offers a large opportunity to insurers, who are well suited to address this specific need 172 mn 68 mn 1.7 mn Protection gap 2 (2019)- South Asia(%) India has the highest 83.0% protection gap in the region, 76.0% 71.0% 74.0% 70.0% as growth in savings and life 55.0% 54.
Slide 4: Despite strong growth, we have barely scratched the surface
Despite strong growth, we have barely scratched the surface – both in terms of geographic spread and scale Market Size1 (Rs. Bn.)- FY20 Share of retail protection by geography3(%)- FY21 City1 10% 12% Total market size for Individual City2 6% 7% , 32 Term is ~150 Bn City3 6% 6% 78% of total prote
Slide 5: Why Indians were slow to buy pure protection
Why Indians were slow to buy pure protection 1 Culturally averse to discussing death & illness 5 2 Joint family Preferred was a proxy physical assets- for insurance gold/property 4 3 Used to Saw it as an savings-led ‘expense’ if they insurance given didn’t claim! the long association with LIC 5
Slide 6: While the growth story is intact, some pricing headwinds being felt
While the growth story is intact, some pricing headwinds being felt Private insurers Scale up of Credit Life- start selling Introduction of fixed Industry working towards Increased protection Reinsurer conservatism Term, albeit on a benefit Health plans calibrated growth coverage via group platform
Slide 7: While COVID has resulted in industry-wide conservatism, it has also provided an impetus to demand
While COVID has resulted in industry-wide conservatism, it has also provided an impetus to the demand for protection Pandemic1 - a push to harness the huge protection opportunity The pandemic has forced customers to re- Pull effect look at their low insurance coverage and start demanding risk-based
Slide 8: How do we see this going forward?
How do we see this going forward? 1 2 3 4 Ongoing revision in Underwriting Increasing Increasing demand Term rates guidelines getting reinsurer market for standard stricter concentration protection products Driven by mortality Non-medical Reinsurers Heightened experience of journeys shifting to reas
Slide 9: HDFC Life’s journey in the protection space
HDFC Life’s journey in the protection space Protection Early commitment to the category with HDFC Protection Series Online sale of protection Popularized with our flagship Click2Protect Credit Life Leveraged a prominent white space Launch of Group Poorna Raksha Option to continue the policy
Slide 10: Our experience during this journey has given us multiple insights
Our experience during this journey has given us multiple insights across mortality trends, fraud trends, segmental risk, amongst others An illustrative depiction of segmental risk Protection growth trajectory of HDFC Life Salaried Non- salaried basis past experience 35% Grad & Male abv. Occupation 3
Slide 11: Journey Simplification– Short journeys for specific requirements
Journey Simplification– Short journeys for specific requirements 3-click claim process Analytics driven investigation Mobility enabled intimation LifeEasy1 Voice WIP EasyClaim Protection Journey Journey >99% policy 51% <4 hrs. Faster medical issuance ~7 mn offers Online ~99% claims overall polic
Slide 12: We follow a multi-pronged risk management approach for the protection space
We follow a multi-pronged risk management approach for the protection space 1 2 3 4 Reducing incidence of Limiting impact on Balancing pricing & Strong governance & fraud & early claims profitability & solvency underwriting audits @Partners Analytics and Data Enrichment Reinsurance Active re-pricing
Slide 13: And we complement our risk management with appropriate growth levers
And we complement our risk management with appropriate growth levers Evolved Direct channel Customer & Distributor friendly variants HDFC Life has one of the most evolved Direct Limited pay and return-of-premium variants better channels (~33% contribution to new business in suited for some segments,
Slide 14: In summary: Our protection philosophy
In summary: Our protection philosophy Protection is a multi-decade opportunity that we plan to address prudently with continued innovation Our Focus Areas Supply side considerations Strengthening underwriting practices Demand side and use of deep learning underwriting considerations models Growth in
Slide 15: Fortune favours the brave…and the assiduous!
Fortune favours the brave…and the assiduous! Reinsurer Customer Distributor Risk Growth expectations experience expectations management Profitability 15
Slide 16: Thank You
Thank You Thank You 16
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