HDFC Life Insurance looks to expand coverage via pre-approved sum assured

HDFC Life Insurance looks to expand coverage via pre-approved sum assured
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New Delhi, Mar 22: life insurer HDFC Life is looking to offer pre-approved sum assured to customers in order to boost penetration in India. In an interaction with Moneycontrol, Suresh Badami, Executive Director, HDFC Life Insurance said the idea is to simplify the process of insurance purchase.
“We are in talks with the distribution partners to look at the modalities of distribution of such a product proposition. This will help improve the penetration of insurance, especially term insurance,” he added.
At the end of the December, HDFC Life had 49 banks, 129 non-banking financial companies, 22 microfinance institutions and nine small finance banks as its distribution partners.
At present, banks offer such pre-approved loans to their credit card customers. These are small ticket size loans that are offered to customers who require them at short notice.
Depending on the type of channel, Badami said they will be able to offer specialised products for each segment.
He said even among the slew of distribution channels, the idea is to improve productivity. Badami said for the agency channel, they have a programme ‘Agency LIFE’ that focusses on recruiting quality agents.
HDFC Life’s Q3 investor presentation showed 75 percent of branches and 90 percent of agents are covered under the programme.
With respect to bancassurance, Badami said while they have a large network of banks it is necessary that open architecture is followed in spirit.
“All banks should adopt the spirit of the open architecture of bancassurance and look at selling products of multiple insurers. This will enable customers to get adequate choice while buying an insurance product,” he added.
Apart from the banks, Badami said there could also be possibilities for insurers to sell products of fellow companies including health and general insurance. “This could be a win-win from a customer perspective since they will be able to get multiple solutions from a single touchpoint,” he added.
HDFC Life Insurance posted an 18.5 percent year-on-year (YoY) rise in its December quarter (Q3) net profit at Rs 245.63 crore. The life insurer posted a 4.1 percent YoY increase to Rs 1,252.34 crore in its first-year premiums in Q3FY19.