HDFC Life Insurance, India’s second-largest private life insurer, has significantly increased its technology expenditures in recent years, with a growth rate that has outpaced its revenue growth. In the fiscal year 2025, the company’s consolidated IT spending climbed to ₹338.2 crore, a 28% increase from the previous year. Over the past five years, HDFC Life has dedicated roughly one-fifth of its revenue to technology, with a focus on developing a robust digital strategy that prioritizes customer-centric design, omnichannel interactions, and AI/ML-led processes.
The company has made significant enhancements to its digital capabilities, with over 90% of service requests now handled through self-service platforms, improving both customer experience and operational efficiency. HDFC Life has invested heavily in AI, cybersecurity, and data analytics to build a data-rich insurance platform that delivers an integrated customer experience. The company is leveraging AI and data analytics to enhance risk assessment, underwriting, fraud detection, and provide personalized financial advice.
HDFC Life has also developed a mobile-first approach, utilizing AI chatbots and paperless policies to streamline operations. The company has integrated generative AI for comprehensive document analysis and has restructured its technology team into business-benefit and core-technology-development groups. A cloud technology management system has further enhanced security and data protection compliance.
The company is modernizing its data systems for enhanced flexibility and real-time, accurate information, adopting microservices and LoCo technology to minimize redundancy and accelerate operational efficiency. HDFC Life has also integrated with key third-party administrators (TPAs) to enable real-time access to medical documents, speeding up policy issuance. The company’s AI-led underwriting process has helped in identifying potential fraud, and its InstaCheck initiative has helped the sales team present eligible coverage options.
The insurance industry is increasingly recognizing the power of innovation to accelerate the pace of change. According to a Gartner report, IT spending in India is projected to reach $160 billion by the end of 2025, an 11.2% increase from the previous year. Furthermore, AI technology spending in India is estimated to reach $10.4 billion in 2028, with an annual growth rate of 38%, driven by enterprise automation, multilingual AI models, and agentic deployments. Overall, HDFC Life’s significant investment in technology is expected to drive growth and improve customer experience in the insurance industry.