HDFC Life Sees Higher Than Industry Growth On Strong Protection Business
India’s largest insurer by market value, HDFC Standard Life Insurance Company Ltd., sees higher than industry growth sustaining over the coming quarters on higher sale of non-participating protection policies—or those that ensure income to a policyholder’s family in the event of death or illness.
“We should continue to grow faster than the overall industry growth,” Vibha Padalkar, managing director and chief executive officer of the company, told BloombergQuint in a post-earnings interaction. The life insurance industry grew 16.2 percent on individual annualised premium equivalent basis as of September.
The insurer’s protection business, which comprises 7 percent of the overall business mix, contributed 28 percent of the new business premiums in the half year ended September. “Protection business will continue to inch upwards,” said Padalkar. The growth of protection business will depend on robust growth of agency and proprietary distribution channels, she said.
The insurer’s investment income fell 56 percent in the linked portfolio due to a volatile market. Padalkar said even if there was a shift in product preferences, their sales team was equipped to sell varied products. “So, if the flavour of the season isn't unit-linked, then we have a bouquet of non-participating products which cater to the public worried about exposure to equity markets.”