HDFC Life Insurance believes that it will be able to “swiftly adapt” to the change in taxation on income from high-ticket, non-linked life insurance products.
“The government, in the Finance Bill 2023, removed the exemption of tax relief on maturity proceeds of policies with more than Rs 5-lakh annual premium.
We believe that we shall be able to swiftly adapt to this change based on our track record of delivering sustained performance through multiple changes in the past – change in ULIP guidelines in FY2010-11, open architecture in FY2017-18, amendment to taxation on ULIPs in FY2020-21,” MD and CEO Vibha Padalkar said in the annual report for 2022-23.
Padalkar said the company has initiated a technology transformation exercise with the objective of building ‘intelligent systems and platforms for insurance reimagination’, christened INSPIRE. A new-age enterprise and data architecture will be built to enhance the insurer’s go-to-market capabilities and further improve the overall customer experience.
“We will continue to increase our investments in technology and distribution, including our proprietary channels to take advantage of digital opportunities and achieve our growth objective.
We anticipate investments in Project Inspire over FY24 and FY25 will make us agile and future-ready by providing a 360-degree view of our customers and seamless integration with new partners, resulting in an improved customer experience and higher productivity across channels,” she said.
“We should expect deeper engagement within the group entities, leading to greater cross-sell opportunities and long-term value creation for all stakeholders,” HDFC Life chairman Deepak Parekh said in the annual report. “The life insurance penetration in India is still low.
Therefore, we believe that the long-term growth story for the life insurance sector remains intact and our focus remains on catering to diverse needs of our customer base, while delivering sustainable profitable growth,” Parekh said.