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Strongly Customer Centric

Commitment to long-term growth and value creation for all its stakeholders has been the mantra for the abiding success of the life insurer

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Rank 10 - HDFC Life Insurance

Vibha Padalkar, CEO & MD

Sector: NBFC

Overall Avg. Score: 2.91

Revenue: Rs 71,889 crore

HDFC Life Insurance is a joint venture between HDFC, India’s leading housing finance institution, and Standard Life Aberdeen, a global investment company. 

Driven by its strong customer-centric approach, the company remains steadfastly committed to long-term growth and value creation for all its stakeholders. Its value framework EPICC (excellence, people engagement, integrity, customer-centricity, and collaboration) characterises the inspiring culture, which fosters growth and progress, for the company and all its stakeholders, for today and tomorrow.

The company has jumped a massive 18 spots to be ranked at the tenth position in the BW Businessworld Most Respected Companies list for 2021. In the previous edition of MRC rankings, HDFC Life was ranked 28th. It scored highly on parameters like 'effective growth plan', 'financial return', 'women friendly policies', CSR and the overall 'work culture’. 

All-round Performance

In FY21, the company sold 9.8 lakh policies, 10 per cent higher than the previous year. In FY21, HDFC Life insured 40 million lives, recorded a profit-after-tax of Rs 1,360 crore, the value of new business stood at Rs 2,185 crore with new business margins at 26 per cent. It also settled over 2.9 lakh death claims, pay-outs were in excess of Rs 3,000 crore. 

At the core of the company’s growth strategy is its customer-first approach, which enabled it to consolidate its industry position amid the challenging environment of FY21. Driven by its strong digital edge, this approach is centred on solving customers’ needs, while building technology resilience for the organisation. For FY21, the company had 99.4 per cent overall claim settlement ratio.

Pan-India presence

HDFC Life’s distribution ecosystem has a pan-India footprint. This includes 390 physical branches and several additional touch points. The distribution framework is bolstered by more than 300 relationships with traditional partners, brokers and collaborations with more than 50 emerging ecosystem partners. The company is also focused on expanding its reach by building a high quality agency channel comprising more than 1,00,000 financial consultants and leveraging bancassurance partnership. The online channel is also being leveraged extensively by the company to cater to the needs of the new generation customers. Currently, the company is sourcing and servicing policies in more than 28,000 PIN codes, covering over 2,000 cities or towns. 

"Our all-round robust results in the pandemic year stand testament to the resilience of our differentiated business model – a customer-centric one, well supported by a diversified distribution architecture, market leading innovation and a trusted brand," said Deepak S. Parekh, Non-Executive Chairman of the company. 

"We ranked consistently amongst the top two private sector companies in terms of new business premium and closing the year at Rs 20,107 crore with a market share of 21.5 per cent. We registered a growth of 37 per cent in assets under management, with an Indian GAAP profit growth of 5 per cent to Rs 1,360 crore. We achieved this amidst an economic slowdown exacerbated by the pandemic, liquidity crises in the financial sector, an uncertain business environment with changing customer preferences and a volatile stock market," he added. 

Tested By The Pandemic 

Agrees Vibha Padalkar, CEO & MD. She said the pandemic tested their agility as well as resilience as a company. "I am proud to say that we collectively tackled numerous adversities and continued to deliver value to our stakeholders, without compromising on the safety of our employees, our outsourced staff, vendors and partners. I am also happy to say that we played a socially important role over the course of the year, having settled over 2.9 lakh death claims, resulting in payouts in excess of Rs 3,000 crore," said Padalkar. 

Despite the challenges posed by extended periods of lockdown through the year, the company also insured close to 4 crore lives in FY21.

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HDFC Life Insurance Magazine 4 June 2022