Target: ₹740

CMP: ₹690.85

We recently met Vibha Padalkar (MD and CEO) and Niraj Shah (CFO) of HDFC Life Insurance, for an update on key developments in the company and the overall life insurance sector.

Key views: The company will continue to strengthen its market position, with technology, customer experience, brand strength, and claims servicing being its key differentiators, as product innovation and differentiation will have limited shelf life; Management remains optimistic given the changes likely to be brought in by the Insurance Amendment Bill which will allow it to address the health insurance needs of customers and grant it flexibility to play a larger role in the overall insurance ecosystem; Below ₹5 lakh policies are growing in the 15-17 per cent range; however, the decline in high ticket-size savings policies is likely to result in 12-13 per cent overall APE growth in FY24, on an adjusted base; and With about 60 per cent share in the HDFC Bank channel, promoter-subsidiary synergies are progressing well and have started proffering positive results.

Going ahead, the product offering-led differentiation will be limited. Hence, for Life Insurers, the differentiating factors will start moving towards: Technology; Claims Servicing; Customer Experience; and Brand — HDFC Life has a strong advantage in all these parameters.