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Page 1: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

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Page 2: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

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Page 3: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

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Page 4: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

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Page 5: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

A good time to look backA good time to look back

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Page 6: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

Total premium (INR Bn)

Penetration (as a % to GDP)

New business premium1 (INR Bn)

Number of players

FY2014

24

454

3,141

FY2002

12

116

501

2.1%

28.7%

26.1%

Source: IRDA, Public disclosures, Life insurance council, Company estimates

IndiaIndia life insurance growth life insurance growth

storystory

Assets under management (INR Bn)

20,0692,304 24.3%

1. Retail weighted premium

FY2008

18

527

2,014

8,477

-2.4%

7.7%

15.4%

4.0% 2.8%

Sum Assured to GDP continues to be less than 50%

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Page 8: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

Agency channel

Multi product portfolio: ULIP, Traditional, Health etc.

A transformative periodA transformative period

Multi channel distribution:Bancassurance, brokers, online & proprietary sales

Traditional products

Service delivery through Branches or Agents only

Technology driven service delivery: Call centers, e-mail, SMS, website and smart phone

FY

2000

FY

2014

Physical, document heavy process

Smoother, digitized process with reduced paper work

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Page 9: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

Leading to a more holistic appreciation of Leading to a more holistic appreciation of

insuranceinsurance

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Page 10: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

Rise in all perceived benefits of Rise in all perceived benefits of

insurance insurance

10Source: Nielsen Life studies

Protect my family in case of my untimely death For my child's FutureFor my old ageRegular savings Good returns

Safety of my money

Another avenue of savings

Save tax

Page 11: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

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Have we sold the concept of Human Have we sold the concept of Human

Life Value?Life Value?

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Have we focused adequately on Have we focused adequately on

Pensions?Pensions?

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Page 15: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

Need for a robust pension systemNeed for a robust pension system

71% of India’s working population does not have access to a reliable post-retirement financial

support system

NSS RoundTotal

employement% age of formal sector workers

% age of informal sector workers

55th round (1999-00) 396.8 13.66% 86.34%

61st round (2004-05) 457.5 13.66% 86.34%

66th round (2009-10) 459.0 26.71% 73.29%

68th round (2011-12) 472.9 28.86% 71.14%

Numbers in million

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Large potential for pension market in Large potential for pension market in

India India

90.95 88.68

72.6766.97 64.66

9.78 7.95.18 4.57

0

10

20

30

40

50

60

70

80

90

100

Australia UK US Chile Canada India Spain Germany Italy

1. Source: OECD statistics, autonomous funds as % of GDP, 2010

Retirement assets as % of GDP

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Pension market size: Organised Pension market size: Organised

sectorsector

Assets in Provident Funds 1 INR 5,000 bn

Gratuity / Superannuation Funds 2 INR 860 bn

Annuities/ pension fund with insurers 3 INR 1,900 bn

NPS – government sector 4 INR 210 bn

NPS – All citizens4 INR 7 bn

1. including EPFO, exempt PFs and PPF; Source: EPFO Annual report 2010-11, market intelligence2. Source: LIC data & internal estimates3. Source: IRDA Annual report 2010-11 * Not including unit linked pension funds4. National Pension Scheme - Source: September 2012

Organised sector pension assets are over INR 8,000 bn

Page 18: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

Have we sold right?Have we sold right?

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Page 19: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

What a customer seeksWhat a customer seeks

TransparencyTransparency

FlexibilityFlexibility

Simple ProductSimple Product

Comfort of protectionComfort of protection

• Payment flexibility• Liquidity options

• What do I pay and what do I get?

• Protection of financial risk• Protection of mortality risk

• A product that can be understood

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Page 20: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

• X% returns*…..(* of your Sum Assured)

How the industry soldHow the industry sold

TransparencyTransparency

FlexibilityFlexibility

Simple ProductSimple Product

Comfort of protectionComfort of protection

• Pay only for 3 years• Withdraw your money after 3 years

• Minimum life cover• Projection of past fund returns

• Terminal Bonus, Vested Bonus, Reversionary bonus, Simple bonus, Compound bonus…

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Page 21: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

The result: When the economy had The result: When the economy had

a downturn…..a downturn…..

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Page 22: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

The industry bore the The industry bore the

brunt…..brunt…..

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Page 23: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

And leading to insurance not being seen as And leading to insurance not being seen as

a long-term producta long-term product

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1313thth month persistency: Lower than Asian month persistency: Lower than Asian

peerspeers

Source: IRDA data on industry 13th month persistency

“The 13th month persistency of Indian insurers is much lower compared to their Asian peers”

HSBC Global research report24

Page 25: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

Taking stockTaking stock

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A good time to look backA good time to look back

……in order to see aheadin order to see ahead

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Key trends that are shaping our Key trends that are shaping our

futurefuture

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How will these trends How will these trends

shape our industry?shape our industry?

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Page 29: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

……Or can we use these trends to Or can we use these trends to

engender more trust amongst our engender more trust amongst our

customers?customers?

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Looking aheadLooking ahead

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Products

Distribution

Risk assessme

nt

Customer engageme

nt

Processes

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Looking aheadLooking ahead

Page 32: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

Products

Risk assessme

nt

Customer engageme

nt

Processes

• Flexible structure

• Yet easy to understand

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Distribution

Page 33: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

Products

Risk assessme

nt

Customer engageme

nt

Processes

• Leverage information across ecosystem

• Segmented underwriting

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Distribution

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Products

Risk assessme

nt

Customer engageme

nt

Processes

• Increasing use of Social Media platforms

• Usage of analytics to anticipate customer requirements

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Distribution

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Products

Risk assessme

nt

Customer engageme

nt

Processes

• Less physical, more digital

• Distributor as mobile branch

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Distribution

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Products

Risk assessme

nt

Customer engageme

nt

Processes

• Choice of channel with customer

• Smart identification of prospects using Data analytics

• Use of technology to sell effectively

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Distribution

Page 37: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

Products

Risk assessme

nt

Customer engageme

nt

Processes

Implication?

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Distribution

Page 38: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

More InnovationMore Trust

More consumers

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Looking aheadLooking ahead

Net Insurance inflow

Gross financial savings

Nominal GDP

FY 2020E*

4.62

27.16

262.65

15% CAGR

FY 2014

2.00

113.55

11.74

Amounts in INR trillion

15% CAGR

15% CAGR

Source: RBI, CSO*Company estimates

Assets under management

Penetration (as a % to GDP)

61.7920.07

21% CAGR

4.0%2.8%

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Page 40: 1. 2 3 4 A good time to look back 5 Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24

Looking aheadLooking ahead

Net Insurance inflow

Gross financial savings

Nominal GDP

FY 2020E*

4.62

27.16

262.65

15% CAGR

FY 2014

2.00

113.55

11.74

Amounts in INR trillion

15% CAGR

15% CAGR

Source: RBI, CSO*Company estimates

Assets under management

Penetration (as a % to GDP)

61.7920.07

21% CAGR

4.0%2.8%Amongst the Top 7 insurance markets globally

by 2020

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Along the way we encountered a few

bumps

Along the way we encountered a few

bumps

Keeping the Customer at the core…

Keeping the Customer at the core…

We are ready to switch gears

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