1. 1

2. 2

3. 3

4. 4

5. A good time to look back 5

6. Total premium (INR Bn) Penetration (as a % to GDP) New business premium 1 (INR Bn) Number of players FY2014 24 454 3,141 FY2002 12 116 501 2.1% 28.7% 26.1% Source: IRDA, Public disclosures, Life insurance council, Company estimates India life insurance growth story Assets under management (INR Bn) 20,0692,304 24.3% 1. Retail weighted premium FY2008 18 527 2,014 8,477 -2.4% 7.7% 15.4% 4.0% 2.8% Sum Assured to GDP continues to be less than 50% 6

7. 7

8. Agency channel Multi product portfolio: ULIP, Traditional, Health etc. A transformative period Multi channel distribution: Bancassurance, brokers, online & proprietary sales Traditional products Service delivery through Branches or Agents only Technology driven service delivery: Call centers, e-mail, SMS, website and smart phone FY 2000 FY 2014 Physical, document heavy process Smoother, digitized process with reduced paper work 8

9. Leading to a more holistic appreciation of insurance 9

10. Rise in all perceived benefits of insurance 10 Source: Nielsen Life studies Protect my family in case of my untimely death For my child's Future For my old age Regular savings Good returns Safety of my money Another avenue of savings Save tax

11. 11

12. Have we sold the concept of Human Life Value? 12

13. 13

14. Have we focused adequately on Pensions? 14

15. Need for a robust pension system 71% of India’s working population does not have access to a reliable post-retirement financial support system Numbers in million 15

16. Large potential for pension market in India 1. Source: OECD statistics, autonomous funds as % of GDP, 2010 Retirement assets as % of GDP 16

17. 17 Pension market size: Organised sector Assets in Provident Funds 1 INR 5,000 bn Gratuity / Superannuation Funds 2 INR 860 bn Annuities/ pension fund with insurers 3 INR 1,900 bn NPS – government sector 4 INR 210 bn NPS – All citizens 4 INR 7 bn 1. including EPFO, exempt PFs and PPF; Source: EPFO Annual report 2010-11, market intelligence 2. Source: LIC data & internal estimates 3. Source: IRDA Annual report 2010-11 * Not including unit linked pension funds 4. National Pension Scheme - Source: September 2012 Organised sector pension assets are over INR 8,000 bn

18. Have we sold right? 18

19. What a customer seeks Transparency Flexibility Simple Product Comfort of protection Payment flexibility Liquidity options What do I pay and what do I get? Protection of financial risk Protection of mortality risk A product that can be understood 19

20. X% returns*….. (* of your Sum Assured) How the industry sold Transparency Flexibility Simple Product Comfort of protection Pay only for 3 years Withdraw your money after 3 years Minimum life cover Projection of past fund returns Terminal Bonus, Vested Bonus, Reversionary bonus, Simple bonus, Compound bonus… 20

21. The result: When the economy had a downturn….. 21

22. The industry bore the brunt….. 22

23. And leading to insurance not being seen as a long- term product 23

24. 13 th month persistency: Lower than Asian peers Source: IRDA data on industry 13 th month persistency “The 13 th month persistency of Indian insurers is much lower compared to their Asian peers” HSBC Global research report 24

25. Taking stock 25

26. A good time to look back …in order to see ahead 26

27. The evolving consumer context Changing consumer context Increase in mobile usage and internet access Time = Money Demand for more information Rising service expectations 27

28. Key trends that will shape our future Key future trends Data availability and Analytics capability Need for instant gratification Premium on Simplicity Transparency and Control 28

29. Key trends that are shaping our future Key future trends Time = Money Rising service expectations Premium on Simplicity Need for transparency and Control Access to information 29

30. How will these trends shape our industry? 30

31. …Or can we use these trends to engender more trust amongst our customers? 31

32. Looking ahead 32

33. Products Distribution Risk assessment Customer engagemen t Processes 33 Looking ahead

34. Products Risk assessment Customer engagemen t Processes Flexible structure Yet easy to understand 34 Distribution

35. Products Risk assessment Customer engagemen t Processes Leverage information across ecosystem Segmented underwriting 35 Distribution

36. Products Risk assessment Customer engagemen t Processes Increasing use of Social Media platforms Usage of analytics to anticipate customer requirements 36 Distribution

37. Products Risk assessment Customer engagemen t Processes Less physical, more digital Distributor as mobile branch 37 Distribution

38. Products Risk assessment Customer engagemen t Processes Choice of channel with customer Smart identification of prospects using Data analytics Use of technology to sell effectively 38 Distribution

39. Products Risk assessment Customer engagemen t Processes Implication? 39 Distribution

40. Changing consume r context Key future trends Tech capability More Innovation More Trust More consumers 40

41. Looking ahead Net Insurance inflow Gross financial savings Nominal GDP FY 2020E* 4.62 27.16 262.65 15% CAGR FY 2014 2.00 113.55 11.74 Amounts in INR trillion 15% CAGR Source: RBI, CSO *Company estimates Assets under management Penetration (as a % to GDP) 61.79 20.07 21% CAGR 4.0%2.8% 41

42. Looking ahead Net Insurance inflow Gross financial savings Nominal GDP FY 2020E* 4.62 27.16 262.65 15% CAGR FY 2014 2.00 113.55 11.74 Amounts in INR trillion 15% CAGR Source: RBI, CSO *Company estimates Assets under management Penetration (as a % to GDP) 61.79 20.07 21% CAGR 4.0%2.8% Amongst the Top 7 insurance markets globally by 2020 42

43. Along the way we encountered a few bumps Keeping the Customer at the core… We are ready to switch gears 43

44. 44