India Market Life Insurance Update

Transcription

1 India Market Life Insurance Update India Issue 55 June 2014 Introduction We are pleased to release our 55 th quarterly newsletter on the life insurance industry in India, covering developments during March to May As per data released by the Insurance Regulatory and Development Authority (IRDA), the life insurance industry witnessed a growth of 2.4% in weighted new business premium collections in FY The growth was driven by year-onyear increase of about 7.1% in the weighted new business premium collections recorded by the Life Insurance Corporation of India (LIC). For LIC, the rise in weighted new business premium collections was heavily skewed towards group business, which expanded by 66.4%. Private players, on the other hand, registered a year-on-year decline of around 4.9% in weighted new business premium collections. The embedded value (EV) disclosures by Max Life and HDFC Life as at 31 March 2014 show a year-on-year increase and have been covered in detail in the industry statistics section. Market sentiment appears positive and there is a general expectation in the industry that the new government will finally implement the long stalled proposal to increase foreign direct investment (FDI) limit in insurance to 49% from the current 26%. In this issue Industry statistics Weighted new business premium income earned during April 2013 to March 2014 EV disclosures by private life insurers as at 31 March 2014 Market update Mergers and acquisitions Company news Financial results Appointments Market expectations Regulatory update Key development: Licensing of IMF Distribution update Products update Contact details On the regulatory front, a key development has been the release of Insurance Marketing Firm (IMF) guidelines, an alternative distribution model that aims to enhance penetration and improve transparency in the sector. Recent product launches in the market continue to demonstrate a shifting trend towards traditional products and away from unit-linked products. We provide an overview on these and other market developments in this edition of the newsletter. We hope you continue to find the newsletter interesting and informative and look forward to receiving your feedback. Towers Watson - Risk Consulting, India Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 1

2 Industry statistics The Indian life insurance industry saw a marginal growth in weighted new business premiums collection in the financial year ended 31 March 2014 (FY ). While the state owned LIC experienced growth in new business premium collections, mainly driven by sales of group insurance business, private life insurers witnessed a slight decline in overall new business volumes during the year. Weighted new business premium income earned during April 2013 to March 2014 Weighted new business premium collections in April to March 2014 and April to March 2013 (in INR billion) ICICI Prudential Life SBI Life HDFC Life Reliance Life Max Life Bajaj Allianz Life Birla Sun Life Kotak Life PNB MetLife Canara HSBC OBC Life Others Source: IRDA Total private players April to March 2013 April to March % Year-on-year growth in new business premium collection by private life insurers in FY % Year-on-year growth in new business premium collection by LIC in FY Weighted new business premium collections in April to March 2014 and April to March 2013 (in INR billion) LIC As per statistics released by the Insurance Regulatory and Development Authority (IRDA), the life insurance industry collected weighted new business premiums amounting to INR 590 billion in FY , a year-on-year growth of 2.4%. The LIC recorded a year-on-year increase of 7.1% in its weighted new business premium collections in FY , resulting in its market share rising by 2.8% to 63.3%. LIC s individual business registered a decline of 4.1%; its group business, on the other hand, recorded a sharp rise of 66.4%, contributing to the overall reported growth. Meanwhile, private life insurers witnessed a year-on-year contraction of 4.9% in weighted new business collections in FY Although, the private life insurers witnessed a decline in new business volumes as a whole, the experience of individual companies was more varied. Amongst the top five private insurers in terms of new business market share, each of SBI Life, Reliance Life and Max Life reported a healthy growth in new business of 11.5%, 52.9% and 17.1% respectively. This contrasted with a sharp decline in new business volumes of ICICI Prudential Life by 21.5% and HDFC Standard Life by 22.3%. The overall experience in the industry illustrates an adjustment period where individual insurers are at different stages of business-as-usual readiness following changes to their product portfolios after new product guidelines became effective earlier in the year. ICICI Prudential Life, in spite of recording a significant contraction in weighted new business premiums, retained the status of market leader amongst private life insurers in FY Given their relative experiences in the year, SBI Life and HDFC Life have switched places for second and third positions from the previous year. Reliance Life and Max Life increased their overall market share, coming into the top-five bracket with Bajaj Allianz Life and Birla Sun Life dropping out Source: IRDA April to March 2013 April to March 2014 Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 2

3 Embedded Value (EV) disclosures by private life insurers as at 31 March 2014 Max Life HDFC Life Bajaj Allianz Life Reported EV As at 31 March 2014 INR billion INR billion INR billion Paid-up capital* As at 31 March 2014 INR billion INR billion INR billion EV / Capital ratio Change in EV from FY12-13 to FY INR 1.97 billion +INR billion - INR 0.52 billion Reported new business margin 13.4% 16.1% 11.2% Methodology used ~ EEV ~ MCEV ~ IEV Discount rate used 13% Risk-free rates (Govt. bond curve) Risk-free rates Source: Company investor releases and public disclosures *Paid-up capital presented above includes reserves and surplus in the shareholder fund. There are currently no set standards for EV disclosures by life insurers in India. Nevertheless, a handful of insurers choose to voluntarily share EV information as part of their investor communications. Summarised above is the information for the life insurance companies which disclosed their EV as at 31 March 2014 Max Life, HDFC Life and Bajaj Allianz Life. In the absence of agreed industry standards, calculation methodologies for determining EV vary from company to company. EV methodology used by Max Life is guided by European Embedded Value (EEV) Principles published by the CFO Forum whilst HDFC Life as adopted an approach on the lines of Market Consistent Embedded Value (MCEV), also published by the CFO Forum. Bajaj Allianz, on the other hand has disclosed EV in line with the Indian Embedded Value (IEV) calculation as set out by the Institute of Actuaries of India. This approach shares certain similarities with the MCEV Principles of the CFO Forum. Due to the differences in calculation methodologies adopted by each company, care needs to be taken whilst making comparisons based on the reported EV figures. The reported EV figures indicate a positive addition to shareholder net worth for Max Life (reported EV of INR39.53 billion as at 31 March 2014, an increase of INR1.97 billion over prior year) and HDFC Life (reported EV of INR69.90 billion, an increase of INR11.20 billion over prior year). For both these companies, the increase in value is mainly attributable to expected return on in-force business due to unwinding of discount rate (which reflects that the expected future shareholder profits are now one year closer than the start of the period) together with value added by new business written over the period. Additionally, of note- is that both Max Life and HDFC Life distributed dividends during the year. Bajaj Allianz Life has, on the other hand, witnessed a marginal decline in EV over the year with reported EV of INR76.01 billion as at 31 March New business margin indicates the expected shareholder value from new business expressed as a percentage of weighted new business premium income. This was reported to be in the range of 11 16%, indicating reasonably healthy overall margins in the industry. Practice varies, however in the determination of this value, particularly in respect of inclusion (or otherwise) of Group business and allowance for acquisition expense over-runs. Therefore, as for comparing EV disclosures more generally, further care needs to be taken whilst interpreting the reported value of new business margin. Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 3

4 Market update A number of life insurers reported a year-on-year increase in profits in FY owing to realisation of margins from in-force business and operational efficiencies, combined with generally lower offsetting impact from relatively milder new business strains. Additionally, due to imminent political changes in the country, the life insurance industry has actively begun expressing its optimism and expectations with the newly elected government. Mergers and acquisitions British insurer Aviva is reportedly looking to exit the Indian insurance market and has shortlisted Birla Sun Life, HDFC Life and Max Life as potential buyers of its joint venture with Dabur Group, Aviva Life. However, recent reports suggest that Max Life has since dropped out of the bidding process. The majority shareholder, Dabur Group, is also reportedly keen to offload its stake in the deal, subject to a favourable valuation. The embedded value of Aviva Life has been estimated at INR18 billion and the company is reportedly seeking a total valuation of INR50 billion. Financial results The financial results for some life insurers for FY (as reported in the media) are summarised below: DHFL Pramerica Life achieved break-even in its sixth year of operations owing to an increase in its gross written premium of over 29% and an addition of over four lakhs policyholders to its customer base in the last fiscal. ICICI Prudential Life recorded a 5% growth in net profit to INR15.67 billion in FY from INR14.96 billion in FY Company news ING Vysya Life has been renamed Exide Life following the acquisition of a 100% stake in the insurance company by majority shareholder, Exide Industries. The insurer is targeting a 10% growth in its business in FY on account of the rebranding exercise and economic recovery. It has also announced its plans to collaborate with a health insurer to launch a product, offering both life and health cover. Reports suggest that shareholders of DHFL Pramerica Life expect to infuse additional capital worth INR3,500 million in FY as part of a concurred commercial understanding among its shareholders. Prudential Financial is expected to contribute INR3,240 million of the aforementioned amount. The rating agency, CARE has assigned Bajaj Allianz Life a AAA rating for claims paying ability and financial strength. The rating agency has attributed this to strong parentage, strong solvency position, experienced management, healthy profitability, good asset quality, strong systems and processes, comfortable liquidity and moderate persistency ratios. Bajaj Alliance Life is the second life insurance company in India to be awarded a credit rating by CARE after Canara HSBC OBC Life was also awarded a AAA rating for its claims paying ability in October HDFC Life has received approval from the IRDA to establish a subsidiary in the West Asia region. AEGON Religare Life has introduced a Nominee card for its online customers with a view to improve its claim intimation process. The card contains policy details required to file a claim, a toll-free number to the claim centre and a barcode which directs the customer to the company website. SBI Life reported a 19% rise in net profit. Its profits were to the tune of INR7.4 billion in FY HDFC Life registered an impressive growth of 61% in net profits to INR7.25 billion in FY from INR4.51 billion in FY The company has declared a maiden dividend income amounting to INR1 billion to its shareholders. Max Life reported net profits of INR4.36 billion in FY , a year-on-year increase of 3%. The insurer s new business premium grew by 19% to INR22.62 billion this financial year. PNB MetLife posted a profit of INR1.92 billion in FY , a 78% growth from its profit of INR1.08 billion in the previous financial year. Bajaj Allianz Life suffered a decline of 20% in net profit to INR10.25 billion in FY from INR12.86 billion in FY Reliance Life recorded a drop of 6% in net profit to INR3.59 billion in FY from INR3.80 billion in FY Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 4

5 Appointments Bikash Choudhary has taken over the role of Appointed Actuary at Future Generali Life. Prior to this, he was a Senior Consultant at Towers Watson. Future Generali Life has also appointed Pradeep Pandey as its Chief Marketing Officer. IDBI Federal Life has appointed Vighnesh Shahane as its CEO and whole time director. Previously, he managed third party distribution at the same company. Jose John has been appointed as the Appointed Actuary at Max Life. The position was previously occupied by Sanchit Maini. Rajit Mehta has transitioned from the role of Chief Operating Officer and Executive Director to Non-Executive Director on the Board of Max Life. Ravi Vishwanath has assumed the position of deputy CEO and Chief Distribution Officer (CDO) of TATA AIA Life. The role was previously occupied by Mukesh Dhawan who has moved to AIA. The company has also announced the appointment of Vishal Kumar Bandlish as its Chief Financial Officer (CFO). Market expectations With the newly elected government taking charge, the life insurance industry has begun expressing its expectations for reforms and market participants are reportedly lobbying for an increase in the foreign direct investment (FDI) limit in insurance to 49% from the currently 26% limit. This move is expected to boost the insurance sector by meeting its longterm capital needs. The Life Insurance Council has stated that the proposed increase in the FDI limit is likely to result in nearly USD10 billion capital inflow over the next few years. The Section 80C of the Income Tax Act, 1961 (recently amended by the Finance Act, 2013) allows for tax deductions in respect of life insurance premium paid subject to certain restrictions based on sum assured and deferred annuity. The life insurance industry has proposed that the limit for the maximum allowable deduction of INR100,000 be revised upwards and also separate limits should be set for life insurance and pension policies. Such a move is expected to provide a boost to insurance purchases by individuals and help revive the new business sales in the industry. The industry has also expressed its concerns on the reduction in the number of tax concessions under the proposed direct tax code (DTC) structure. Section 70 of the DTC, 2013 restricts the premium payable at 15% of the capital sum assured where such policy is for the life insurance of a person with disability and at 10% of the capital sum assured in the case of any other person. Section 73 of the DTC mandates that the aggregate amount of deductions under sections 70, 71 (health insurance) and 72 (education of children) shall not exceed INR50,000. The life insurance industry has urged the government to relax these restrictions and has also sought clarifications on the overall DTC structure. Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 5

6 Lessons from precedents abroad Industry reactions Key features Regulatory update Following a slew of new regulations over prior years, further developments on the regulatory front have relatively quietened down. Aside from a number of minor announcements, the most significant development over the quarter was the announcement by IRDA of an exposure draft for setting up of Insurance Marketing Firms (IMFs) that paves way for setting up of a licensed entity to distribute insurance products of multiple insurers through Insurance Sales Persons (ISP) and Financial Service Executives (FSE) in a model akin to an Independent Financial Advisor as common in the UK. The licensing procedure and eligibility criterion for the IMF has been specified. The minimum capital requirement of an IMF is INR1 million, which should be maintained at all times. ISPs would also be required to meet certain training, examination and certification requirements. The IMF would be permitted to operate in only one district during the first three years of the license. It could apply for a change of district or additional districts at the time of renewal of application at the end of three years. Every IMF would need to take out and maintain at all times a professional indemnity insurance cover that is equal to four times the business turnover of the marketing firm. The remuneration paid to the IMF by the insurer for solicitation of policies would follow the rules for commission/fee payable to intermediaries as highlighted in Section 42E of the Insurance Act, In addition the IMF can be compensated for marketing expenses, expenses towards infrastructure as well as performance based incentives as mutually agreed between the IMF and the insurer. Such fee shall not exceed 50% of the expenses of management ceiling specified in the Insurance Act, The ISPs would be paid a monthly salary and would be required to possess a valid broking license. Although the proposed new distribution channel is expected to increase insurance penetration in the country, there are concerns within the industry over allowing the channel to sell financial products other than insurance, given the possibility of misuse of customer data. There is insufficient clarity on the course of action to be taken in respect of policies solicited by the IMFs that are subsequently suspended or terminated by the IRDA. The regulatory norm of confining the IMFs to one district initially could discourage big companies from entering the market. This may result in smaller agents forming IMFs scattered across the country which, in turn, would be difficult for the regulator to monitor. The remuneration structure of the IMFs could lead to an inconsistency in the level of remuneration paid to various distribution channels. Additionally, performance based incentives from the insurer may lead to a conflict of interest for the IMFs since they have a fiduciary responsibility towards policyholders. The IMF model is based on the recommendations of the Govardhan Committee on Distribution and is akin to Independent Financial Advisor (IFA) in the UK. The IFAs in the UK were previously remunerated directly by life insurance companies, similar to the model proposed by the exposure draft for IMFs. However, in the UK, this lead to cases where incentives for the IFAs were not necessarily aligned to the customer s needs as IFAs often promoted policies from insurers that offered most favourable terms. A Retail Distribution Review (RDR) was carried out in the UK in 2013 and the IFAs were formally replaced by financial advisers. They are suitably qualified sales persons, independent of the life insurance companies and remunerated directly by the end-customer. Thus, they are expected to recommend to clients the best product in the marketplace that suits their needs. The main changes incorporated following the RDR to the IFAs were: More stringent qualifications required from financial advisers. Increased levels of capital adequacy required by adviser firms. Prohibition of commission payments for investment products. The UK regulator was concerned that the use of commission would result in recommendations being based on the level of commission that an adviser would receive rather than on which product would be most suitable for the client. Hence, a more transparent method of allowing policyholders to pay explicit amounts from their policies was introduced. Prior to the RDR, many IFAs were still operating on the basis of receiving commission only from the insurers whose products they sold. Advisers are now able to offer four types of advice: basic, simplified, restricted and independent. Advisers must disclose to customers upfront what types of advice they will receive and charge the customer accordingly. Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 6

7 Distribution update Insurers are increasing their focus on tapping technology based platforms such as online sales. The reporting period saw insurers launching a number of innovative initiatives in this direction. We have also covered a section on the online sales channel which highlights the increasing value insurers are attaching to this medium. AEGON Religare Life has launched an online game Kochadaiiyaan s Reign of arrows based on actor Rajinikanth s Tamil movie. The game has been designed with a view to generate leads for the insurer and showcase the insurer s product proposition. The game can be downloaded from any ios, Windows or Android device and has already received more than 100,000 downloads. Birla Sun Life has introduced MySolutions, a unique technology platform to provide tailor-made insurance solutions to customers. It helps agents and advisors identify customer needs and devise customised solutions for their clients. The insurer currently offers four life insurance products under this initiative. The LIC has launched a mobile application which allows users to calculate and compare premium of insurance products and make premium payments online. It also enables agents to store sales figures, maintain a customer directory, provide notifications for premium due dates and lapsed polices, among other features. Policybazaar.com, an online insurance policy aggregator has recently announced its plan to raise capital of up to INR1 billion. The company has reported total premium income from sales of both life insurance and general insurance business of INR2.7 billion for FY and is reportedly targeting INR5 billion for the current fiscal. Increasing focus on online sales A recent survey by Max Life and Nielsen has ranked life insurance as the most popular financial product being bought online. Among overall online purchases, it ranked next to only apparels and accessories. Lower premiums, ease of comparability, absence of agents and less paperwork have been cited as some of the benefits responsible for encouraging customers to choose the online sales channel. The survey has also revealed some of the customers concerns pertaining to the online medium such as lack of personal interaction, inadequate customer support, unclear instructions and limited information. The survey also indicated a tendency of prospective customers to research products online but makes their purchase offline. Owing to the popularity of the medium, a number of insurers have launched products specifically designed to be sold online. The perceived advantages of these products are evident due to their relative affordability, transparency, convenience, availability and customer-centricity. The latest entrant to the list of insurers employing the online medium is the state-owned insurer, LIC. The entry of the public sector behemoth is expected to revolutionise the online sales channel. The chart below illustrates the increase in proportion of new business from direct sales. Online sales are reported by life insurance companies under direct sales and much of the increase in contribution from this channel is attributable to increasing popularity of online life insurance products. Source: Public Disclosures Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 7

8 Products update The limit of maximum five new product approval requests per annum to be submitted to the IRDA becomes applicable from the new financial year, as a result of which there has been a flurry of proposed product launches and submissions to the regulator this became effective. Consequently, last quarter saw a number of new products launches. A brief description on these new products launches is covered below. Company name Product name Product description AEGON Religare Life Bharti AXA Life Birla Sun Life [2] Rural Term Insurance Future Invest Income Assured Plan Traditional; single premium term assurance. It provides death coverage for five years with the death benefit equal to 50 times the single premium paid. Unit-linked; no premium allocation charge, limited premium payment term and option to choose from benefit equal to higher of the fund value or sum assured or sum assured plus fund value. Traditional; non-participating savings plan offering guaranteed income of 8% of the sum assured per annum, payable monthly, in arrears starting after the premium paying term till the maturity date. It also offers guaranteed additions expressed as a percentage of sum assured, payable on maturity or death. DHFL Pramerica Life Edelweiss Tokio Life HDFC Life Kotak Life [4] Vision Regular Returns Plan Sarv Suraksha Wealth Builder YoungStar Udaan e - Term e - Preferred Term Traditional; participating endowment plan which provides a guaranteed survival benefit on policy anniversaries from the fifth policy year till maturity. Waiver of premium, critical illness, hospital care, surgical care, accidental death and disability are riders that are offered along with the plan. Traditional; group term assurance; death benefit can also be utilised to pay outstanding loan amount. Traditional; non-participating endowment assurance offering guaranteed loyalty additions payable on death or maturity along with the basic sum assured. Optional riders are available including waiver of premium, critical illness, term rider, accidental death and accidental total permanent disability. Traditional; participating child endowment with an option to receive survival benefits in monthly instalments. Guaranteed additions accrue in the first five policy years and there is an option of waiver of premiums under the plan. Traditional; non-participating term assurance which offers the option to step up the sum assured and hence the premiums at a nominal fee without any further medical underwriting. A step down to a lower amount of cover subject to a prescribed minimum is also available. Exclusively marketed online. Traditional; non-participating term plan; available online and offers discounted rates for females and non-tobacco users. Remaining features are similar to that of e-term. Saral Suraksha Traditional; non-participating term plan; it offers the option of single premium or a limited premium paying term of 5 years. No medical underwriting is required. LIC Max Life [3] Gramin Bima Yojana e - Term Plan Life Gain Premier Shiksha Plus Super Traditional; non-participating savings and investment plan targeting rural and social sector consumers; single premium payment with death benefit equal to 200 times the single premium and maturity benefit equal to 500 times the single premium. No medical underwriting is required. Traditional; non-participating term plan; marketed online. The plan offers differential premium rates for smoker / non-smoker lives. Traditional; participating endowment which offers an option to choose from multiple bonus options including cash bonus and paidup addition. A waiver of premium rider is offered with this product. In case the policyholder is diagnosed with a terminal illness 50% of the sum assured would be paid in advance. Unit-linked child-focussed plan with lump sum on death and an annual family income benefit of 10% of sum assured up to the policy maturity but not exceeding 10 instalments. Loyalty additions apply at fixed durations. Premium Return Protection Plan Traditional; non-participating protection plan; that provides an inbuilt accidental death benefit apart from the basic sum assured. It offers discount on female lives and the premium payment term is limited to 11 years. Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 8

9 PNB Met Life Reliance Life Sahara Life SBI Life Shriram Life Company name Product name Product description [5] Met Family Income Protector Plus Online Term Shrestha Nivesh-Jeevan Bima Smart Money Back Gold New Shri Raksha New Shri Vidya New Shri Vivah New Group Gratuity Plan Guaranteed Return Plan Traditional; non-participating term assurance which provides monthly pay-outs for the chosen benefit pay-out period in case of death. There is an option to take up term assurance with return of premiums on maturity as well. Traditional; non-participating term assurance, marketed online. Differential rates are offered for non-smokers. Traditional; non-participating single premium endowment plan. Traditional; participating money back savings plan which offers preferred term rider, accidental death benefit rider, critical care rider and accidental total and permanent disability rider. Traditional; participating endowment plan. Extended cover is available after the stated policy term until age 100, but the policy will not participate in profits after the end of the stated policy term. Traditional; participating child endowment that provides 25% of the basic sum assured as survival benefits for the last four years of the policy term. In case of death, in addition to the basic sum assured the discounted value of a monthly income benefit of 1% of the basic sum assured at the end of every month, payable from the date of death till the end of the policy term would be payable. Traditional; participating endowment plan which offers a monthly income benefit of 1.5% of the basic sum assured at the end of every month following the date of death till the end of the policy term in addition to the basic sum assured. Unit-linked; non-participating group plan under which gratuity benefits shall be paid out of the policyholders' unit fund as and when the policyholder requests for payment. Lump sum life insurance cover if opted along with the gratuity benefit as per the Group policy holder's scheme rules shall be payable in the event of death of the member. Traditional; non-participating endowment. It is a single premium plan and the maturity benefit is a factor of single premium. Riders like critical illness cover, family income benefit and accidental benefit are also offered under this product. Star Union Dai-ichi Life Jeevan Safar Plus Traditional; participating savings-cum-protection endowment plan. Guaranteed additions are applicable in the first 5 policy years and are payable along with the basic sum assured on maturity. It is a regular premium payment plan with the option to pay premiums for 10 years or for the entire policy term. Note: 1. Source: company websites and press reports. 2. The numbers in [ ] represent the total number of products launched over the reporting period as per information sourced from company websites and press reports. 3. No information on product launches in the relevant period could be sourced from the above mentioned sources for Aviva Life, Bajaj Allianz Life, Canara HSBC OBC Life, Future Generali Life, ICICI Prudential Life, IDBI Federal Life, IndiaFirst Life, Exide Life and Tata AIA Life. Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 9

10 Contact details Towers Watson's Risk Consulting team covers the length and breadth of India with associates based in Mumbai and Gurgaon. Vivek Jalan Director, Risk Consulting, India Dilip Chakraborty Senior Adviser, Towers Watson, India Kshitij Sharma Senior Consultant, Risk Consulting, India Kunj Behari Maheshwari Consultant, Risk Consulting, India Mumbai 511/512, Solitaire Corporate Park Andheri-Kurla Road, Andheri East Mumbai Tel: 91 (22) Fax: 91 (22) Gurgaon Unitech Business Park, Tower B, 2 nd Floor South City 1, Sector-41 Gurgaon Tel: 91 (124) Fax: 91 (124) The India Market Life Insurance Update has been prepared by Towers Watson for general information purposes only and does not constitute professional advice. The information, opinions and projections contained in this Newsletter are derived from various sources and have not been independently verified by Towers Watson. If you require professional advice or require any further information please contact any of the above named individuals. ABOUT TOWERS WATSON Towers Watson is a leading global professional services company that helps organisations improve performance through effective people, risk, and financial management. With 14,000 associates around the world, we offer solutions in the areas of benefits, talent management, rewards, and risk and capital management. Towers Watson covers the length and breadth of India and operates from offices in four cities, covering all geographical regions of the country. For more information, please visit towerswatson.com Copyright 2014 Towers Watson. All rights reserved. towerswatson.com 10