ALM Strategy and Insurance Market Opportunities
Low levels of penetration: Life protection
1
Protection gap (2019)
83.0%
74.0%
71.0% 70.0%
61.0%
55.0%
3
Sum Assured as a % of GDP 2
Trend of retail loans
(Rs Tn.)
332%
252% 251%
34
44
53
41.0%
153%
143%
24
127%
17
85%
12
62%
23%
India
Malaysia Thailand China
Japan Singapore Hong
Kong
Singapore Japan USA
Malaysia Thailand
South
Korea
India
FY12
FY14
FY16
FY18
FY20
FY22
Embedded SA
Protection SA
India has the highest protection gap in the
region
Savings and life insurance coverage growth
lagged economic and wage growth
Protection gap growth rate to grow at ~4% per
annum
1. Swiss Re (Based on respective financial year of the countries)
India has the lowest sum assured (SA) as a %
of GDP amongst its peers
opportunity for protection growth in life
insurance due to:
o Rising middle income,
。 Increasing financial literacy
о Limited life cover represents
34
2. Jefferies "Composite Insurance License in India: Taking a Leaf from Global Experience" report 2022
3. Kotak institutional equities
Retail credit has grown at a CAGR of 16% over
last 10 years
■ Credit life need would be spurred by:
o increasing retail indebtedness
。 Increasing attachment rates
o Increasing value penetration,
Growing lines of business
HDFC
LifeView entire presentation