I have two questions. The first question is about the business growth opportunities in Tier-2 and Tier-3 cities. Following the GST tax removal, the insurance products have become more affordable to the public, and the company has been an early mover in developing the business in Tier-2 and Tier-3 cities. With growing brand awareness and initial success in these regions, what is the company's target for the sales contribution from those regions over the next five years? So, I just want you to quantify on this impact. Next question is about the asset liability management. We have observed that the company's embedded value and new business value margin sensitivity to the interest rate movement has decreased over the past six months. So, given the current macro volatility, could you elaborate on whether this reduced sensitivity has come at a higher cost or if it remains manageable through the asset management solutions? Additionally, is the bond market sufficiently developed to serve as an effective hedging tool for your asset liability management needs?
Questions across 2 calls
MW Kim
Firm not listed in source transcripts
HDFC Life Insurance Company Limited
ICICI Prudential Life Insurance Company Limited
Good afternoon and thank you for taking my question. So, I have two questions regarding the mid -term industry outlook, and also the Company’s product strategy. Firstly, when you observe the development of the insurance market across the emerging countries, it is clear that government and regulators aim to expand the insurance sector and to provide a stronger safety net within the system. As a result, industry -friendly policies are often introduced. However, in recent years, we have observed a series of regulatory tightening based on my observation. So, the question perhaps would be, looking ahead over the next five years and projecting toward 2047, what do you see the key government policies that could drive strong revival in the industry growth? Secondly, regarding the product margin outlook, the Company already mentioned several issues and things, but broadly, I believe that the insurance companies are essentially the manufacturer and now, I believe that several product strategies might be under the consideration and also the management mentioned in previous questions. Could you please share a bit more detailed management insight on the product design and margin outlook in context of the ongoing regulatory changes and managing the macro development? Thank you.
That's very clear. Thank you so much.