HDFC Life Insurance Co is in talks with the Insurance Regulatory and Development Authority of India (Irdai) to allow life insurance companies to sell other regulated financial products, said Deepak Parekh, chairman of the insurance company. -vie, during the 22nd annual general meeting. This decision will allow insurance companies to extend their reach and improve the customer experience.
There are 24 lakh insurance agents registered with life insurance companies, which is an important source of income for a large number of agents, Parekh said.
“I would also like to thank our regulator, Irdai, for its continued guidance and support to the industry during these difficult times. I am confident that the insurance regulator will continue to show its strong commitment to reforms to increase insurance penetration and facilitate the sustainable growth of the sector,” he said.
Earlier this month, Irdai allowed insurance companies to launch health and general insurance products without its prior approval, to give them flexibility to introduce new products.
HDFC Life is currently working on integrating its operations with Exide Life. HDFC Life in January completed the acquisition of Exide Life from Exide Industries for Rs 6,687 crore. This move aims to increase the reach in South India. The acquisition will help the company expand its reach in Tier II and Tier III cities, Parekh said.
Business renewal premium increased by 18% and persistence to month 13 increased to 92% in FY22. New business value increased to Rs 2,675 crore, up 22% year-on-year. Its new business market share stands at 21% in private life insurance, making HDFC Life the second largest private life insurer in the country and the third largest overall, Parekh said.
The increase in death benefits paid by the industry following the second wave of Covid highlights the importance of the sector, Parekh said. The life insurance industry paid out Rs 60,000 crore in death claims in the first nine months of FY22, twice as compared to the prior year period. “It gives us an idea of the kind of financial support the industry has provided during these difficult times,” Parekh said.