HDFC Life welcomes reforms outlined in the Master Circular on Life Insurance products

HDFC Life Insurance Company has issued the following statement in reference to Master Circular on Life Insurance Products.

'We welcome the IRDAI's progressive reforms outlined in the Master Circular on Life Insurance products. Measures such as a simplified Customer Information Sheet, training programs, mandatory policy loans to enhance liquidity, introduction of variable annuities, extended free look period, robust processes to address customer grievances and higher value to customers on early exits should further the Regulator's vision of insurance for all by 2047.

We are confident these reforms will significantly strengthen the life insurance proposition in India, making it simpler, more transparent, and ultimately more attractive to prospective customers.

While we anticipate a gross impact of approximately 100 bps on the company's New Business Margin (NBM) due to higher surrender value on early exits, we are confident in our ability to largely mitigate this impact without compromising the value proposition for our customers. We expect these measures to positively impact the long-term growth prospects for the industry' - HDFC Life Spokesperson.

The above regulations have to be implemented by 30 September 2024.

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