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The Insurance Regulatory and Development Authority of India (IRDAI)'s life insurance reforms aim to empower policyholders with simplified customer information sheet, training programs, mandatory policy loans to enhance liquidity, introduction of variable annuities, extended free
look period, robust processes to address customer grievances and higher surrender value to customers on early exits. These regulations have to be implemented by 30 September 2024.
While HDFC Life anticipates a 100 basis point (bps) impact on its New Business Margin (NBM) due to the higher surrender values, the company remains confident in its ability to mitigate this impact and deliver long-term value to its customers.
The company believes these reforms will significantly strengthen the life insurance industry in India, making it more accessible, transparent, and ultimately more attractive to new customers. The insurer expects these measures to contribute positively to the industry's long-term growth.
HDFC Life Insurance Company is a leading, listed, long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as protection, pension, savings, investment, annuity, and health. The company has more than 80 products (including individual and group products) and optional riders in its portfolio, catering to a diverse range of customer needs.
HDFC Life Insurance Company's standalone net profit jumped 14.77% to Rs 411.66 crore on 5.46% rise in net premium income to Rs 20,488.11 crore in Q4 FY24 over Q4 FY23. Net income from investments stood at Rs 7,251.41 crore in Q4 FY24, steeply higher from Rs 1,189.52 crore in Q4 FY24.
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