Mumbai: Points InsuranceMILF who recently picked up Fund At a valuation of $3.5 billion, the current fiscal is seeing an opportunity to scale up the business as many insurers are facing Capital Constraints in view of adverse claim ratio. With capital nearly three times the statutory requirement, the company also has the technical infrastructure to support growth.
Private insurer, which is already 30. ranked 15th in non-life The companies (including health) have recorded a gross written premium of Rs 2,196 crore for the first half of FY12, which is 67% higher than the corresponding period of the previous financial year. Currently, around 55% of its premiums come from motor insurance.
“We should end the year with a market share of around 2%,” said Number Insurance President Kamesh Goyal. It does not engage in crop insurance, which is a significant volume of business for the insurance industry, despite the company being only in its fourth year of operation. “Our solvency margin will be around 300% of the statutory requirement once the current funding round ends. This gives us a huge opportunity to grow our business,” Goyal said.
According to Goyal, the ability to raise capital puts Digit in an advantageous position. “Last year, many non-life insurance companies grew aggressively. This year, the first quarter has been tough and some insurers have had to release their claims reserves. We have been a little cautious and had a good combined ratio in Q1 this year,” he said.
The non-life industry is capital-constrained with three state-owned companies incurring losses and many Indian promoters not in a position to infuse capital. According to Goyal, Digit will use its capital to provide capacity to Indian industry, including thermal power, where there is a capacity crunch with reinsurers backing out for green reasons.
In addition to opportunities to capture market share, the small-scale policies that Digit pioneered are looking at the post-pandemic. “We are seeing a pickup in travel insurance following the normalization of air travel guidelines by the government.”
The company’s investment in technology is facilitating growth. “We are moving towards volunteering in a big way. We have enabled customers to do a pre-approval inspection of the car by submitting photos and they get a quick decision in some cases. The advantage of this is that the customer gets to know immediately whether the photographs are of acceptable quality and also whether the vehicle has been accepted for insurance,” Goyal said.
Digit Insurance has also reduced dependence on its call centers by enabling service requests on WhatsApp using Artificial Intelligence. “Earlier, for one lakh policies, we used to handle 1,800 calls a day. Now, with 10x policies, the call volume is around 2,300. However, we have received 72,000 service requests on WhatsApp,” Goyal said.
Private insurer, which is already 30. ranked 15th in non-life The companies (including health) have recorded a gross written premium of Rs 2,196 crore for the first half of FY12, which is 67% higher than the corresponding period of the previous financial year. Currently, around 55% of its premiums come from motor insurance.
“We should end the year with a market share of around 2%,” said Number Insurance President Kamesh Goyal. It does not engage in crop insurance, which is a significant volume of business for the insurance industry, despite the company being only in its fourth year of operation. “Our solvency margin will be around 300% of the statutory requirement once the current funding round ends. This gives us a huge opportunity to grow our business,” Goyal said.
According to Goyal, the ability to raise capital puts Digit in an advantageous position. “Last year, many non-life insurance companies grew aggressively. This year, the first quarter has been tough and some insurers have had to release their claims reserves. We have been a little cautious and had a good combined ratio in Q1 this year,” he said.
The non-life industry is capital-constrained with three state-owned companies incurring losses and many Indian promoters not in a position to infuse capital. According to Goyal, Digit will use its capital to provide capacity to Indian industry, including thermal power, where there is a capacity crunch with reinsurers backing out for green reasons.
In addition to opportunities to capture market share, the small-scale policies that Digit pioneered are looking at the post-pandemic. “We are seeing a pickup in travel insurance following the normalization of air travel guidelines by the government.”
The company’s investment in technology is facilitating growth. “We are moving towards volunteering in a big way. We have enabled customers to do a pre-approval inspection of the car by submitting photos and they get a quick decision in some cases. The advantage of this is that the customer gets to know immediately whether the photographs are of acceptable quality and also whether the vehicle has been accepted for insurance,” Goyal said.
Digit Insurance has also reduced dependence on its call centers by enabling service requests on WhatsApp using Artificial Intelligence. “Earlier, for one lakh policies, we used to handle 1,800 calls a day. Now, with 10x policies, the call volume is around 2,300. However, we have received 72,000 service requests on WhatsApp,” Goyal said.
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