Hdfc Life Insurance Co. Ltd. · NSE:HDFCLIFE
Hdfc Life Insurance — Emkay Conference
22 slides from Hdfc Life Insurance's conference presentation
Slide 1: Future of Life Insurance in India
Future of Life Insurance in India Vibha Padalkar MD & CEO, HDFC Life
Slide 2: Today we would discuss…
Today we would discuss… 1 Reflections on the broader environment 2 Life insurance opportunity in India 3 Life insurer of the future 2
Slide 3: Reflections on the broader environment
Reflections on the broader environment
Slide 4: We operate in an extremely dynamic and evolving environment…
We operate in an extremely dynamic and evolving environment… Changing customer profiles and preferences New segments (younger millennials, Gen-Z), demand for personalization and convenience Inflection in consumer digital ecosystems Emergence of digital consumer ecosystems, exponential growth in onli
Slide 5: Protect the core whilst proactively reimagining insurance to scale up business
…against this backdrop it becomes imperative for life insurers to protect their core whilst proactively reimagining insurance to ‘scale’ up business Protect the Core Reimagine Insurance Diversify revenue sources to reduce dependence Strong profits enable growth through increased 1 1 on a particular
Slide 6: Bancassurance and product innovation have helped top private life insurers wrest share from LIC…
Bancassurance and product innovation have helped top private life insurers wrest share from LIC… 10-Year Individual WRP market share: LIC vs. Private Players CAGR1 Other 10% Private 15% 17% 10% 20% Top-5 Pvt. 26% 22% 37% 43% 14% 64% 63% 46% 37% 1% FY07 FY12 FY17 FY22 Notes: 1. CAGR of Individual
Slide 7: Life insurance opportunity in India
Life insurance opportunity in India
Slide 8: India remains vastly under-insured, both in terms of penetration and density…
India remains vastly under-insured, both in terms of penetration and density… Life insurance penetration1 Life insurance density (US$)2 Protection gap3 Growth in savings and life insurance 19.2% Vastly under-insured, both in terms 83% coverage has lagged behind of penetration and density economic an
Slide 9: …presenting macro opportunities in the Protection space…
…presenting macro opportunities in the Protection space… Large untapped addressable market… Spur in retail loans (Rs. Tn) Only 1 out of 40 people (2.5%) who can Increasing retail indebtedness to spur need for afford is buying a policy every year; sum credit life products; enhancement in insurance as
Slide 10: …Savings space, as household savings get financialized…
…Savings space, as household savings get financialized… Financialization of household savings Financial savings mix 22% 18% 20% 22% 3% 8% 12% 15% 14% 19% 47% 18% 19% 16% 65% 60% 68% 17% 17% 17% 67% 53% 56% 53% 50% 35% 40% 32% FY13 FY16 FY19 FY21 FY13 FY16 FY19 FY21 Financial Physical Household savin
Slide 11: …and Retiral space, as India's demographics change from 'young' to 'aging'…
…and Retiral space, as India’s demographics change from ‘young’ to ‘aging’… Life expectancy at age 60 years Population composition (billion) Underpenetrated pension market Chartin Title Improvements life expectancy will Elderly population is expected to India’s pension market is under- lead to an av
Slide 12: Life insurance as a preferred 'savings' instrument will make it easier to tap macro opportunities
Life insurance as a preferred ‘savings’ instrument will make it relatively easier to tap into the macro opportunities… Life insurance ranks amongst top 3 financial instruments and the importance of life insurance as an instrument largely remains same across age groups and gender 82% 73% 50% 10% 6% 2
Slide 13: Life insurer of the future
Life insurer of the future ; Sas HDFC es Dal Life
Slide 14: Life insurer of the future…
Life insurer of the future… Customer experience expectations Product innovation Digital distribution and operations Data-led ecosystems Prudent risk management 14
Slide 15: Changing customer experience expectations…
Changing customer experience expectations… Journeys in clicks vs. days Perceptions that need to be worked upon: 1 Term premium is a ‘cost’ Compare and buy 2 Unbundling is better Touch offline & buy online 3 5 year horizon than long term horizon 4 Annuity is taxed – don’t buy Blog & reviews 5 Savings
Slide 16: Broad-based product innovation driven by changing customer needs, preferences and easing regulations…
Broad-based product innovation driven by changing customer needs, preferences and easing regulations… Combo products Savings products Embedded / co-created products Protection plans embedded with Two Savings plans with distributed Equity oriented savings plans with 1 4 6 healthcare products / servic
Slide 17: 'Phygital' distribution and 'digital' operations…
‘Phygital’ distribution and ‘digital’ operations… ‘Phygital’ Distribution ‘Digital’ Operations Digital experience & convenience for ‘Bionic’ agents and brokers customers increasingly using digital powered by digital tools channels in daily life Digitally enabled Point of Sale AI-powered 24X7 operati
Slide 18: Data-led ecosystems powering new business, servicing and risk management
Data-led ecosystems powering new business, servicing and risk management Servicing Build customer profiles / views, 360˚ view, offers, targeted upsell etc. New business Risk management Customer data management Early warning indicators to and sharing frameworks reduce frauds, persistency includ
Slide 19: On the bedrock of prudent, time-tested risk management practices…
On the bedrock of prudent, time-tested risk management practices… Active review & re-pricing Proactive reserving Product boundary conditions Mortality & morbidity risks Balance pricing & U/W to limit impact on profitability and solvency Identify outliers and take Well provisioned to prevent Conditio
Slide 20: Many moving parts in the medium term
Many moving parts in the medium term Access to national Composite licence? Health indemnity? health data? Expanded open Risk-based capital? Relaxed sand box? architecture? Life council-led Fintech subsidiary? Invest abroad? aggregator model? 20
Slide 21: This is just the beginning of a large opportunity…
This is just the beginning of a large opportunity… 70% 60% AIA (Asia) Mkt cap - $128 bn EV - $75 bn 50% Prudential Mkt cap - $41 bn FY22 NBM 40% EV - $47 bn HDFC Life 30% Mkt cap - $15 bn EV - $4 bn 20% Ping An 10% Mkt cap - $140 bn EV - $130 bn 0% 0 20 40 60 80 100 120 140 160 FY22 Embedded value (
Slide 22: Thank You
Gerrans ~, e Thank You pS :