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HDFC Standard Life Insurance Company
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TABLE OF CONTENTS
1. The Macro Economic Scenario
2
3.
HDFC Standard Life Insurance
4
4 Ps
5.
HDFC SLIC & Me
Suggestions
2
6. Acknowledgement
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The Macro Economic Scenario
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Industry Growth Prospects
Indian Scenario
Robust GDP Growth FY 2008 - 09 (P) : 6.1%
Increasing per Capita Income FY 2008 - 09 : Rs. 39,000
Gross Domestic Savings (% of GDP) FY 2008 - 09 : 34.6%
Source: Economic Times
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Industry Growth Prospects
Demographics: Population Growth & ProfileIndias population growth - Population to increase from 1029 Mn to 1400 Mn between 2001-26
Demographic Transition1. Will raise the proportion of working-age people
2. Favorable implications for savings, investment, and overallGDP growth
3. With the fall in youth dependency ratio - GDS will rise &
participation of women in the workforce likely toimprove.
The Youthful Age Pyramid - 2005 The Expected Transition - 2030
Source: UN Population Division5
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Industry Growth Prospects
Demographics: Income Levels
As per NCAER market information survey of households (2005)
Economic growth will push household incomes higher
Significant impact on
Household Savings
Financial Savings
Source : NCAER- Market Information Survey of Households, August 2005
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Industry Growth Prospects
Demography - Life Expectancy & Health Indicators
Expectation of life at birthHealth indicators
was 63 years in 2001Life expectancy is increasing but so is
currently is over 66 yearsincidence of lifestyle related disorders
Strongly underlines the need forOpportunity for Stand Alone Health
Pension Products Products
Source: UN Population Division
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Industry Growth Prospects
Currently rural market under-served ..
Urban India Rural India
Premium : 5.9% - 6.3% of GDP Premium : 2% - 2.5% of GDP
Rs 1800 per capita* Rs 60 per capita*
Reach : ~ 1 agent / 1,000 pop* Reach : ~ 0.25 agent / 1,000 pop*
Effectiveness Reach
Banks Commercial (rural branches)
Regional Rural Banks DistrictCo-operative Banks
Post offices
Co-operative societiesImproved reach will be an avenue for growthVillage internet kiosks
NGOs / Self Help GroupsSource: IRDA; NCAER, CERG
*Data as of 2006 10
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The Transition Of Life Insurance
Effect of introducing competition ..
Pre-liberalization Post-liberalization1999-2000 2008-2009
Life Insurance Penetration(%)1.77 4.4*
Life insurance density (Rs.)342 1495*
No of players1 22
New Business premium (Rs. Bn)91.23 871.07
Average Sum Assured (Rs.)57,000 92,925*
5,885 LICAverage Premium (Rs.)
4,200 Private18,686
* Figures are of FY 07 - 08
Source: Life insurance Council
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Insurance Industry : contribution to Nation Building
Insurance industry is the largest investor in the Indian equity market
Net Inflow
Industry (March 31, 2009)
Rs. bn.
Life insurance 580.00
Foreign Institutional Investors 473.45
Mutual Fund 70.00
Life insurance industry also participates significantly in governmentborrow ings
In FY 2007 - Rs. 2751 billion
In FY 2008 - Rs. 2975 billion
Source: Life Insurance Council
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Life Insurance : Market Analysis
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Major Players: Industry Competition
Canara HSBC Oriental Bank of Commerce Life InsuranceReligare Life InsuranceDLF Pramerica Life InsuranceStar Union Dai-ichi Life InsuranceAgriculture Insurance Company of IndiaApollo DKV Insurance
Cholamandalam MS General InsuranceHDFC Ergo General Insurance CompanyICICI Lombard General InsuranceIFFCO Tokio General InsuranceNational Insurance Company LtdNew India AssuranceOriental Insurance CompanyReliance General InsuranceRoyal Sundaram Alliance InsuranceShriram General Insurance Company Limited
Tata AIG General InsuranceUnited India InsuranceUniversal Sompo General Insurance Co. Ltd
Bajaj Allianz Life Insurance Company LimitedBirla Sun Life Insurance Co. LtdHDFC Standard life Insurance Co. LtdICICI Prudential Life Insurance Co. Ltd.ING Vysya Life Insurance Company Ltd.Life Insurance Corporation of IndiaMax New York Life Insurance Co. Ltd
Met Life India Insurance Company Ltd.Kotak Mahindra Old Mutual Life Insurance LimitedSBI Life Insurance Co. LtdTata AIG Life Insurance Company LimitedReliance Life Insurance Company Limited.Aviva Life Insurance Co. India Pvt. Ltd.Shriram Life Insurance Co, Ltd.Sahara India Life InsuranceBharti AXA Life InsuranceFuture Generali Life Insurance
IDBI Fortis Life Insurance
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New Business Market Share
HDFC Standard Life growing steadily
Market Share for HDFC SL has gone up from 4.10% Mar 08 to 4.5% Mar 09
*Source: Based on weighted first year premium figures derived from IRDA Report
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HDFC Standard Life
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HDFC Standard Life: Brief
Came into existence on 23rd October, 2000
First branch opened in church gate on 1st November 2000
JV Between Housing Development Finance Corporation Limited (HDFC Limited)
and Standard Life Plc, UK
HDFC holds 72.43% shares where as Standard life holds 26% shares rest by others.
Mr. Deepak S. Parekh (Chairman)
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HDFC Standard Life: 4 Ps
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HDFC Standard Life: Price Mix
Pricing is one of the most complex task
Pricing Method
Technical Pricing of riskConsiderations
Market analysis
Past claims history
Collaborative effort amongst
Underwriters
Actuaries
Marketing teams
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Total Premium GrowthNew Business
Five Year CAGR of 80 % in Total Premiums
Year 2004-05 2005-06 2006-07 2007-08 2008-09
FYP (Incl SP) 71% 66% 58% 55% 48%
Renew al premium 29% 34% 42% 45% 52%
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Product Mix - Individual business
A diversified portfolio addressing varied needs of customers
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Diversified Product Portfolio
Range of 24 well researched products to meet customer needs
Savings Savings Savings
Childrens PlanJoint life plans Endowment Assurance Unit linked Young Star
Money Back Unit linked Endowment Investments
Simplilife Unit linked Enhanced Life Protection Single premium whole
Protection Simplilifelife
Term Assurance Health Wealth Maximizer
L oan cover term Surgicare Pension
Critical care Pension plans
Investments
Single premium whole life Wealth Maximizer
Health
Surgicare
Critical care
Pension
Immediate Annuity 33
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Number of Policies - New Business & In Force
The growth excluding the rural policies has been 17% over 07 - 08
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HDFC Standard Life: Place Mix
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Distribution Growth
A wide geographical spread covering 700+ cities to reachcustomers and provide efficient service
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Bancassurance - Strong Relationships
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Brand Awareness - Survey Feb 2009
Amongst top 3 in brand recall and consideration
Source: The Nielson Company, Feb 09
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HDFC STANDARD LIFE AND ME
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HDFC STANDARD LIFE AND ME
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Job Description: What I did!
Networking
Cold Calling &meeting
Influence them
IRDA Exam
FC license
Scopeofm
yw o
rk
Sco
peofm
ywo
rk
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Performance
12 Financial consultants
Gold Tier Certificate
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SUGGESTIONS
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SUGGESTIONS
Reduce fees
Concentrate more on rural markets and
develop more number of distribution points
Provide fixed income
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HDFC SLIC.Market growth: 3.5%Relative market share: 0.4
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Strategies to grow
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