Yes sir, thank you taking my question. I apologize, I joined slightly late. So just on this management overlay so your Q4 collection efficiency is quite strong at around 98%. Yet you've taken this additional management overlay this quarter. So, any specific localized stress that you, that sort of prompted you to take this management overlay, especially when collections are doing well? That's the question I have.
Yeah, understood thanks so much. That is the only thing.
Yes, thank you for taking my question. So , I have I have one question on retail protection. So , what proportion of buyers would you say on retail protection are first-time buyers? Is there any sense that you're getting that the addressable new-to-insurance kind of pool, that pool is kind of thinning or is that getting a little saturated? How should we think of that? And what is the kind of sustainable quarterly protection growth rate into FY27?
The other specific question on the HDFC Bank channel. So, is the bank trying to kind of deprioritize non-par savings? I mean, if it's a trend which is kind of visible in terms of the fact that ULIP share has been increasing. So, does the bank kind of see it as competing with deposit holders and so on? Is that something which is being felt?
I had two questions. One on this hybrid high sum assured ULIP. So , what kind of sum assured multiple do you offer on the annual premium? Is it something in the range of 120-125%, 25x of the annual premium or lower than that? So, the concern I have on this particular specific product is there could be some substitution effect and so on if you offer very high sum assured as a multiple of annual premiums. The question is on this high sum assured ULIP. The other question is, what aspirations do you have on this Tier 3, Tier 4 markets with all this agency rollout that is ongoing? So, any targets you have set in terms of what this will constitute in terms of the overall business mix going forward?
So, you spoke about changes that you can make on the product, whether it is a tenure extension, attaching riders, higher sum assured and so on. Also, some channel repricing. But just in terms of rider attachment, any data that you can share? How many products currently do you have, in which you have a rider attached? And what is the plan going forward as far as the rider attachment is concerned? The second question I had was on the group side. The way I see it, group can be a natural hedge in terms of this input tax credit. So, is there something we can do on the group side to kind of mitigate some of the impact of this GST?
Any data around how many riders are attached, like, to your products? And do you have a target in mind and so on?
Thank you for taking my questions. I have two questions. The first one is on the protection products specifically. So, if I look at the individual sum assured that has gone up by almost 74% but your individual protection new business premium has grown by 25%. So, this sum assured inflation which is happening, is that because of say selling more of say return of premium kind of term plans or is it because the sum assured on your savings product itself has gone up? So, that is question number one. Second question was on this channel economics and so on. So, the bancassurance productivity has jumped around 15% and your agency productivity is at 3 lakhs despite adding some 25% more agents. This OPEX ratio has gone up by 90 bps to 6.2%. So, I just wanted to know how much of this OPEX increase is related to agency and what is the realistic timeline we should have in mind before this agency productivity also starts inching upward. So, these were two questions. One was on agency productivity going upward and the second is on why there is a divergence between the sum assured and the new business premium on the protection side?
Yes, so that's perfect. I understood the agency bit. Just on this sum assured, I see the individual sum assured has gone up by 74% whereas this is excluding the group business and your individual NBP protection has gone up by 25%. So, the reason why I was asking is why is there a gap between say the 74 and 25? Is this because you are selling more return of premium kind of products or is it because…
So I had a question on this par construct specifically. If you're saying that you're not going to tinker with, say, the commission payouts and so on, and you're trying to also increase, trying to attach more riders and also increasing tenor and so on. But given the issues with the participating product construct, will it be fair to say that a lot of the costs of this GST and so on will be borne by the end consumer in the sense that the returns might be below what it was, say, before this input tax credi t was allowed. So that's the only question I have on the participating product.
Thank you for the opportunity. I had two questions. One is on this ULIP portfolio, what is the proportion of say these hybrid ULIPs, say the ULIPs on the similar lines of say Protect and Gain and so on, where you offer a higher sum assured. So, just what the proportion of the entire ULIP is? Secondly, on riders, what is the attachment rate? Are you attaching only on say the new products, new sales or on the existing portfolio as well? And what kind of attachment rates are you seeing? So, these are the two questions I had.
Fair point. Just on this, a follow up to this hybrid ULIP question, is there any, do you see any issue in terms of, say, a substitution effect in the sense that if you're selling these high sum-assured ULIPs, you could be kind of, some customers who would have wanted to buy, say, a large term policies, they might be wanting, they might just end up finally buying hybrid ULIPs, which have high sum assured. So, is there some substitution effect that is possibly playing there? Also, is that some, is the substitution effect also playing to some extent on the non-par to kind of on hybrid ULIPs? So, the customer profile is different. But, is the agency force trying to kind of sell these hybrid ULIPs as a substitute for non-par? Is that happening?
Thank you for the opportunity. I had a question related to GST, two questions actually related to GST. So, given the reduction on individual life policies, how will you treat the impact within the embedded value framework? Specifically, will the benefit flow through the expense variance or the operating assumption change line in the EV waterfall. That is the first question on GST. The other is that since group products remain taxable with input credit eligibility, is there a plan to kind of balance the trade-off between retail and group? Because on group business, you will get that input tax eligibility. So, how do you see the interplay between group and retail playing in the future? So, these are the two questions.
Understood. Thank you.
I don't know whether you may have already addressed this because I joined slightly late. I just wanted to know the spli t between -- in the group segment, the split between employer - employee and benefits, what was the premium split and also the loss ratio split? That's all.
I had two questions more at an industry level. So the -- if I look at the sales of vehicles, I know it's early days yet, but the proportion of the EV vehicles vis -a-vis the ICE vehicles has been rising. This might be a larger -- it may have a it may play off more in terms of two-wheelers, but even in four-wheelers -- even in passenger vehicles, there is the slight increase in EV vehicles and the issue with EV vehicles, which the losses also say is that there is a greater probability of total loss because it's completely sensor-based and so on vis-a-vis, say the ICE vehicles. So if this trend continues of the proportion of, say, ICE vehicles reducing, do you think the industry is kind of equipped in terms of pricing because -- there is a greater chance of total loss in terms of -- and also the number of moving parts are less, so there would be lesser spare parts and so on. So with regard to, say, EV, that is question number one. So my question is more at an industry level. Do you think the industry is pricing this well? The second is on this health, the CGHS kind of ruling happening, the price rationalization as far as CGHS is concerned. Do you think the health group, say, employer -employees could benefit in terms of lesser kind of -- lesser issues as far as hospitals are concerned? So these are the two questions I have.
Thank you, sir. That's all I want to know. Yes, yes, that's all I, that's something I was interested, yes.
Thank you for the opportunity. Most of my questions have been answered, but I just wanted to know what is the philosophy around the new SIF plans which many AMCs are planning to launch? I mean, what kind of timeline do we have in case we are also planning to go down that path and what kind of yields could that benefit for us?
Okay. Yes. Thank you