Due to lack of awareness and limited understanding of financial planning, the penetration of life insurance category has remained stagnant and low at 2.72%. The state run giant LIC dominates with 70% market share leaving the rest of the pie for 23 private insurance players.
All the players are garnering revenues from "matured audience" (31-50 years, Chief Wage Earners). Thus, with limited purview of its core customers, there was a big overlap of chasing the same profile of customers amongst all Insurance players.
HDFC Life being the leader amongst the private insurance players wanted to change the game by identifying an untapped growth segment. They found a latent potential in Youth, largest demographic segment of India.