HDFC Life can continue to deliver “sustained growth and profitability” even after new taxation: Parekh
HDFC Life Insurance chairman Deepak S Parekh on Friday said the company can continue to deliver “sustained growth and profitability” even after the new tax rules introduced by the government as the insurer has product innovation capability and diversified distribution franchise.
“On the recent tax amendment front, we believe that with the experience we have gained during years of tumultuous business cycles, our product innovation capability and diversified distribution franchise, we can continue to deliver sustained growth and profitability,” Parekh said during the 23rd annual general meeting of HDFC Life.
The government, in the FY24 Budget, removed exemption of tax relief on maturity proceeds of all non-ULIP insurance products i.e. par and non-par with more than Rs 5 lakh annual premium.
Parekh pointed out that the life insurance sector provides a “distinctive” long-term guaranteed savings product proposition that remains superior, even after the tax changes. “Protection and annuity continue to remain areas that are exclusive to life insurers,” he said.
He said the company’s objective is to capitalize on these opportunities by introducing innovative products, expanding its presence through a diverse distribution network and transforming its business and technology models to deliver best-in-class experience to the customers.
According to Parekh, the growth potential of the Indian life insurance sector remains intact despite the headwinds observed over the last financial year. Factors such as low insurance coverage, favorable demographics, increasing life expectancy, and growing consumer awareness regarding financial protection bode well for the industry.
In FY23, the life Insurance industry witnessed a growth of 18% and
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