HDFC Standard Life has recorded a strong growth of 150% for the period April-December 2005, in comparison to the same period last year, with new business first year premium of Rs.599 crores while the overall private insurance industry grew by 91%. HDFC Standard Life’s Effective Premium Income (EPI) grew by 175% from Rs.181 Cr. to Rs.496 Cr.
HDFC Standard Life’s growth in new business premium is a result of strong growth in policies sold as well as, an increase in the average premium. For the individual business, volume measured by the number of policies sold, witnessed an 80% growth, from under 125,000 in the first half of FY 2004-2005 to over 220,000 in the first half of FY 2005-2006. The average effective premium on the other hand increased to Rs.28,000 from approximately Rs.15,000 for the same period last year.
Commenting on the consistently strong performance of the company, Mr. Deepak Satwalekar, MD and CEO, HDFC Standard Life said, “We believe that our success is a result of our efforts in giving customers, the best solutions to take care of their insurance needs. Our endeavour to provide high quality insurance solutions to customers through quality pre-sales advice, based on a sound need-based solutions approach, and post-sales service has started to pay off.”
Mr. Satwalekar added, “The critical success factor has been managing the customer on two fronts, the actual customer experience in terms of service standards, and more importantly, customer perceptions about the manner in which HDFC Standard Life conducts business, in following a business ethic that shuns short cuts and unethical practices.”
Contribution to the individual business premium income by the different channels of distribution also changed significantly compared to the first half of last year. The Corporate Agency and Bancassurance channel has grown tremendously and currently accounts for over 45% of the company’s business. Speaking on this, Mr. Satwalekar said, “The customer has clearly indicated his/her preferred choice of distribution channel. Life insurance business is a long-term business and needs strong partnerships, which have been built over time with the customers. HDFC Standard Life has also strengthened its existing relationships and we are happy with the results.”
HDFC Standard Life’s offerings of Group Retirement Solutions to the corporate sector have met with increased success on the back of excellent investment performance shown by all its funds.
Ongoing training for conventional products and specialized training for unit linked products for its 31,000 financial consultants has also helped its customers choose the products best suited for their need for protection, savings, investments and pensions. HDFC Standard Life is the only company requiring its sales force to undergo specific training in ULIPs before they are permitted to sell ULIPs. IRDA is now proposing this as a requirement for all companies. This is one more step that HDFC Standard Life has taken to protect the interests of the policyholders.
HDFC Standard Life’s geographical presence has also increased and it has now 169 offices across the country (having added 66 new offices from April – December 2005).
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