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MOSL: HDFC LIFE INSURANCE (Neutral)-Business prospects healthy-technology remains a key enabler

(HDFCLIFE IN, Mkt Cap USD16.3b, CMP INR573, TP INR600, 5% Upside, Neutral)

We attended the HDFC Life – Tech Edge event wherein the company highlighted the progress it is making across businesses and how it is using technology to provide a seamless experience to its customers, channel partners and other stakeholders. The topics of discussion ranged around (a) simplifying customer journey – right from the on-boarding stage to servicing and claims settlement/turnaround time, (b) employing technology to deepen integration with channel partners and making sales process more efficient, (c) using data analytics to improve the sales conversion rates, better underwriting to reduce the risk of early claims, and managing sales attrition/agent inactivation and (d) collaborating with start-ups to offer improved customer proposition and dealing with problems of mortality, morbidity and longevity.

Customer centricity remains the key focus – raising service benchmarks
HDFCLIFE has been making significant efforts to build its digital edge which is enabling it to raise the servicing benchmarks and delight customers/other stakeholders. This is also helping it attract more channel partners and deliver sustainable business growth, ahead of its peers. The company has been able to (i) reduce the policy issuance time to <4 hours in 1HFY20 (2 days in FY15), (ii) lower the claim settlement period to 1.2 days (FY17: 9.3 days), (iii) increase the claim settlement ratio to 99% (FY15: 90.5%), driving a significant improvement in the customer satisfaction score to 93% (85% earlier) and (iv) significantly increase the number of channel partners to 270+ (FY15: 31).