Journey Simplification and Business Resilience slide image

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 Life
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