hdfc slic summer training

8/14/2019 HDFC SLIC summer training

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01/04/10 Siddik Fruitwala


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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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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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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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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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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

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Sco

peofm

ywo

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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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