MPW 2023: How Vibha Padalkar steered HDFC Life through choppy waters

For Vibha Padalkar, MD and CEO of HDFC Life Insurance, the year began with a bit of a dampener thanks to a change in tax rules governing insurance policies in the Union Budget 2023-24. The government said the proceeds (other than ULIP) of policies with an annual premium over Rs 5 lakh would be added to the income of the taxpayers and taxed at the slab rate.

But as it turns out, that didn’t matter because Padalkar successfully navigated that challenge and helped her company retain its position among the Top 3 insurers in terms of market share, achieving balanced growth and profitability. 

“Despite the recent Budget changes that were perceived to be unfavourable for the sector, the life insurance industry has demonstrated remarkable resilience. We recorded a healthy growth of 10 per cent in individual WRP (weighted received premium) versus 8 per cent for the overall industry for the half year ended September 30,” she says. “Our H1FY24 market share was 15.7 per cent and 10.3 per cent in the private and overall sectors, respectively,” adds Padalkar. Weighted received premium is the sum of first-year premiums received during the year and 10 per cent of single premiums, including top-up premiums.

Mind you, it’s not as if HDFC Life just managed to survive the challenges; its assets under management (AUM) crossed the significant milestone of Rs 2.5 lakh crore, and the company insured over 30 million lives across individual and group businesses, reflecting a growth of 16 per cent YoY. Besides, Padalkar also oversaw an industry-first with HDFC Life’s acquisition of the erstwhile Exide Life. These achievements, and those in previous years, have propelled her into the Hall of Fame of BT’s Most Powerful Women in Business list.

Looking ahead, Padalkar remains as optimistic as ever. Her focus on improving customer penetration is yielding results, particularly with anticipated growth from Tier II and III cities. Padalkar points to the strong demand in the pure protection and retirement segments. She aspires to maintain her track record of doubling key metrics every four years as it navigates the evolving landscape. Considering what she’s pulled off this year, it seems a safe bet that she will make that happen.

@teena_kaushal