Journey Simplification and Business Resilience
Low levels of penetration
-
Life protection
Protection gap 2 (2019)
1.7 mn
172 mn
68 mn
83.0%
76.0% 74.0%
71.0% 70.0%
61.0%
Urban Working
Population
Addressable
Market
(excl blue collared)
Annual Policy
Sales
Only 1 out of 40 people (2.5%) who can
afford it, is buying a policy every year 1
India
Indonesia
Malaysia
24
17
Even within the current set, Sum Assured as
a multiple of Income is <1x
12
8
3. Kotak institutional equities
48
1. Goldman Sachs Report, March 2019
2. Swiss Re (Based on respective financial year of the countries)
Thailand
China
Japan
Singapore
South Korea
Trend of retail loans 3 (Rs Tn.)
FY10
FY12
FY14
FY16
FY18
FY20
34
34
55.0% 55.0% 54.0%
41.0%
Australia
Hong Kong
India has the highest protection gap in
the region, as growth in savings and life
insurance coverage has lagged behind
economic and wage growth
Protection gap growth rate is predicted
to grow at 4% per annum
42
Retail credit has grown at a CAGR of
18% over last 10 years
Increasing retail indebtedness to spur
need for credit life products
Immense opportunity given:
Increasing adoption of credit
Enhancement of attachment rates
Improvement in value penetration
Widening lines of businesses
HDFC
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