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EXCLUSIVE
HIRING TALENT, PRODUCT EXPANSION EMERGE AS TOP PRIORITIES IN INSURANCE: REPORT
According to the latest survey conducted by BCG and Matrix Partners, hiring the
right talent, followed by product expansion are the top most priorities of
insurers, and health will see the most disruption compared to motor and life
segments. The survey also highlights that 92% of fintechs feel regulatory
challenges to be the biggest concern in Insurance. Here's more.
* Sheersh Kapoor
* ETBFSI
* Updated: August 19, 2022, 09:02 IST
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As per 87% of the respondents, hiring the right talent emerged as the top
priority for the Insurance sector, followed by product expansion (73%),
geographical expansion (60%) and Regulatory impact on the business model (53%),
the latest survey conducted by Matrix Partners India, in association with Boston
Consulting Group (BCG) showed.
According to the report titled 'State of India Fintech Union 2022', product
expansion, especially in Health claims processing solutions and Managed care are
touted for growth with around half of the respondents expecting the Health
insurance segment to witness the most disruption compared to other segments like
Life (16%) and Motor (14%).
"Current tech solutions and innovation have been limited in these areas,
focusing largely on distribution. However, as players expand, tech-led solutions
are expected to drive greater penetration. Similarly, better experience and VAS
such as wellness-linked products will be the key differentiators of winners vs
laggards," it added.
Over 80% of the respondents believe that Data based pricing in Health & Life
should be one of the top new avenues to be allowed in the insurance space,
followed by Value added services such as wellness-linked products, white label
insurance products, and Pay per use motor insurance pricing (71%)
"2022 can be the watershed moment for Insurtechs in India. Heightened consumer
awareness post-COVID, new product innovation, and increased regulatory support
are clear tailwinds for insurers and insurtechs alike. Low CAC, strong
underwriting, and a solution-first mindset will be key for insurtechs to win in
the long run," said Anish Patil, Associate Vice President, Matrix Partners.
The report also highlights a strong positive sentiment on recent regulatory
moves such as easing new insurer applications, pay-per-use pricing in motor
insurance, data-based pricing in the health segment, National Health Stack, and
sandbox.
Forward-looking regulatory moves like Usage-Based Insurance (UBI), simplified
product filing guidelines, and flexibility in empanelment of cashless hospitals
are creating growth unlocks, it added.
Key Challenges
According to the findings of the survey Regulations, CAC and Scalability are the
key challenges today.
More than 90% of the fintechs and 58% of incumbents feel that regulations are
the most concerning challenge of all, followed by CAC according to 83% of the
fintech respondents, however, the number of incumbents seeing CAC as a bigger
challenge is high at 67%.
Scalability of business models, loss ratios, and competitive intensity are some
of the other concerning challenges for the companies working in the insurance
space, especially the new age insurtechs, the report said.
It further added that 70% of respondents also believe that easing investment
restrictions would facilitate the better collaboration of insurers' ability to
invest in insurtechs will lead to more collaboration.
Collaboration/ Partnerships- synonymous with growth
Embracing a new regime through partnerships and collaboration wherein InsurTechs
and Insurers, with deep integration, can build highly efficient and scalable
operating models, and drive growth together, the report said.
IRDAI is introducing several significant regulatory changes to drive greater
penetration, digitalization, and improved customer service will also have a
large impact on how insurers and InsurTechs collaborate, it added.
It further highlighted the gradual shift from pure-play insurance to more
comprehensive “one-stop” solutions, providing ecosystem and holistic plays to
customers will lead to the emergence of B2B plays, where InsurTechs need to
build solutions for Insurers to offer services in a plug-and-play manner.
"Product simplicity has also been an ask of customers, especially in health and
life for long. InsurTechs can play a significant role in driving flexibility in
product structures and pricing for better economics as well as for customer
value," it added.
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INSURANCE
* 4 hrs ago
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* 22 hrs ago
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* 3 days ago
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* 4 hrs ago
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* 4 hrs ago
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EXCLUSIVE
LIC SEES 20 PC DECLINE IN DEATH CLAIMS IN Q1 FY23 AS COVID IMPACT EBBS
In the June quarter of the previous fiscal, settlement of death claims was to
the tune of Rs 7,111 crore, which for Q1 of this year was Rs 5,743 crore, LIC
Chairman M R Kumar said in a post-earnings call with analysts.
* PTI
Click Here to Read This Story
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Insurance behemoth LIC witnessed a decline of nearly 20 per cent in death claims
in the first quarter of this fiscal with the COVID impact seen to be ebbing,
though the amount is still higher than pre-2020 levels, officials said.
In the June quarter of the previous fiscal, settlement of death claims was to
the tune of Rs 7,111 crore, which for Q1 of this year was Rs 5,743 crore, LIC
Chairman M R Kumar said in a post-earnings call with analysts.
"So there is quite a decrease, and it's quite obvious that whatever decrease was
there based on COVID... going away now, Q1 to Q1 of the previous year," Kumar
said.
The claim rates had been very stable before the pandemic, said Dinesh Pant,
Executive Director and Appointed Actuary, Life Insurance Corporation (LIC).
He added that there was a spike in claims in the last two years due to COVID.
"Now, from the current quarter (ending September 30, 2022), we see it settling
down towards more normal. It is still not back to pre-2020 figures because we
would appreciate that the effects will take some time and there will be some
IBNR (Incurred But Not Reported) cases which will get reported late also," Pant
said.
The official said these issues seem to be settling down now and the COVID effect
seems to be less threatening.
"So we are optimistic that over the next year or so, this should settle down to
the pre-COVID level," Pant said.
For Q1 FY23, LIC's net profit jumped to Rs 682.88 crore as against Rs 2.94 crore
in the year-ago period on the back of record premium income.
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EXCLUSIVE
CLIMATE RISK INSURANCE: KERALA GOVT YET TO ACT ON REPORT
The back-to-back devastation caused by extremely heavy rainfall has put the
state in a never-ending loop of piling compensation and rehabilitation cases.
Though Kerala has moved forward with looking at disaster risk financing (DRF)
and insurance to address the climate-emergencies and hazards, the state is yet
to implement a report submitted by the state planning board committee on risk
transfer mechanism.
* Sudha Nambudiri
* TNN
Click Here to Read This Story
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KOCHI: The back-to-back devastation caused by extremely heavy rainfall has put
the state in a never-ending loop of piling compensation and rehabilitation
cases.
Though Kerala has moved forward with looking at disaster risk financing (DRF)
and insurance to address the climate-emergencies and hazards, the state is yet
to implement a report submitted by the state planning board committee on risk
transfer mechanism.
The report, prepared as part of the Rebuild Kerala Initiative and accepted by
the World Bank, looks at providing timely and adequate assistance to vulnerable
households caught in climate disasters. It suggests a comprehensive disaster
risk financing framework, creating a unified database of vulnerable households
for post-disaster safety net payments, implementing a modified crop risk
insurance payment system, and mobilizing market-based resources to complement
public financing of disaster risks.
Official sources said though the government showed keenness to implement the
report, unusual weather disturbances have kept the administration busy while
dealing with disasters on a near-daily basis.
"We have proposed a climate risk insurance model that could be adopted as the
risk transfer mechanism. The ration card can be used as a basic document to
distinguish households for the purpose of insurance," said K Ravi Raman,
chairman of the committee and planning board member.
The study suggested alternate DRF instruments like bonds, CSR funds, taxation,
etc, to address the funding gaps. During the meeting with WB officials in
December 2021, it was suggested that a technical expert could also be brought in
for exploring the possibility of getting support from national disaster
management authority (NDMA) for addressing the technical capacity gaps.
The report is being sought by other states too and could be a model in the
country as no state has come up with such a clear structure for implementing DRF
and insurance, said government officials.
The study points out that when the entire section of yellow and pink ration
cardholders is covered, households can pay a full premium of Rs 31 and take a
cover of Rs 1 lakh for protecting the property value not exceeding Rs 1 lakh
from natural disasters. There can be a cap of Rs 10 lakh on the sum insured for
now. The premium amount may vary depending upon rating factors like value of the
property, type of structure, risk exposure of the regions, etc.
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EXCLUSIVE
BIDEN BILL TO HELP MILLIONS ESCAPE HIGHER HEALTH CARE COSTS
The bill will extend subsidies temporarily offered last year when Congress and
Biden signed off on a $1.9 trillion coronavirus relief bill that significantly
lowered premiums and out-of-pocket costs for customers purchasing plans through
the Affordable Care Act’s marketplace. It also continues reduced costs for more
individuals and families who live well above the poverty line.
* AP
Click Here to Read This Story
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Millions of people in the United States will be spared from big increases in
health care costs next year after President Joe Biden signed legislation
extending generous subsidies for those who buy plans through federal and state
marketplaces.
The sweeping climate, tax and health care bill sets aside $70 billion over the
next three years to keep out-of-pocket premium costs low for roughly 13 million
people, just before the reduced prices were set to expire in a year beset by
record-high inflation.
As the calendar pushed closer to the Nov. 1 open enrollment date, Sara Cariano
was growing nervous about her work helping people across Virginia sign up for
subsidized, private health insurance on the HealthCare.gov website.
“I expected very difficult conversation with folks to explain why their premiums
were spiking,” said Cariano, a policy specialist at the Virginia Poverty Law
Center.
But the passage of the “Inflation Reduction Act” erased those worries.
“Things aren’t going to change for the worst for individuals who are purchasing
coverage through the market,” she said.
The bill will extend subsidies temporarily offered last year when Congress and
Biden signed off on a $1.9 trillion coronavirus relief bill that significantly
lowered premiums and out-of-pocket costs for customers purchasing plans through
the Affordable Care Act’s marketplace. It also continues reduced costs for more
individuals and families who live well above the poverty line.
Only Democrats supported the extended health care subsidies and the other
proposals in the bill that Biden signed on Tuesday. Republicans criticized the
measure as big government overreach that will only worsen inflation. In reality,
economists say, the bill will do little to either fan or extinguish the flames
of exorbitant prices.
Health insurance premiums in the marketplace are expected to rise significantly
next year — roughly 10 percent — according to an analysis by the Kaiser Family
Foundation. The extended subsidies, which determine premium payments based on
income, will guard most people from those price increases, said Cynthia Cox, a
vice president at the foundation.
“Generally speaking, people should not see increases in their premiums,” Cox
said.
Those who bought plans on the government marketplace saved on average about $700
in premium payments from the subsidies this year, according to estimates by the
Centers for Medicare and Medicaid Services.
As costs dropped, more people signed up for the coverage over the last year and
the number of those without health insurance dropped to an all-time low of 8% in
August, the Department of Health and Human Services announced. Roughly 26
million people, 2 percent of them children, remain uninsured in the U.S.
In California, many of the 1.7 million people who purchase health insurance
through Covered California, the state-operated insurance marketplace will
continue to see savings ranging from $29 and $324 per month, depending on their
income level.
State officials predict about 220,000 people will be saved from being priced out
of coverage. Between 2 million and 3 million people in California might also
turn to the state marketplace if they lose coverage through Medicaid when the
federal government’s COVID-19 public health emergency expires. About 15 million
people in the U.S. have been extended Medicaid coverage during the pandemic.
Cost is the biggest factor driving whether a person signs up for coverage or
not, said Joseph Poindexter, the senior director of health insurance programs at
HealthCare Access Maryland.
Some parents, for example, sign their children up for Medicaid but skip buying
coverage for themselves, he said.
“It’s really said to see folks who will say, I’ll forgo treatment, or won’t go
visit the doctor,” Poindexter said.
Fewer people have had to make that calculation with the subsidies, Poindexter
said, attributing the lowered prices to a 9% increase in new enrollees in the
state last year.
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EXCLUSIVE
ESIC TO EXPAND ITS SERVICES TO ALL 744 DISTRICTS BY DECEMBER
New Delhi, Aug 18 (PTI) Employees State Insurance Corporation will expand its
services to all 744 districts by December amid an increased beneficiary base
after the implementation of the Social Security Code, Union Labour Minister
Bhupender Yadav said on Thursday.
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New Delhi, Aug 18 (PTI) Employees State Insurance Corporation will expand its
services to all 744 districts by December amid an increased beneficiary base
after the implementation of the Social Security Code, Union Labour Minister
Bhupender Yadav said on Thursday. The code provides for coverage of informal
workers (gig and platform workers) under the social security scheme ESI (health
insurance) run by the Employees State Insurance Corporation (ESIC).
According to a labour ministry statement, Yadav, in his concluding address at
ESIC 'Chintan Shivir' held at Surajkund, announced nearly a dozen outcomes of
the deliberations.
He announced that "ESIC will work to expand its services in all 744 districts of
the country by December 2022. This expansion will take into consideration the
increased beneficiary base, post implementation of Social Security Code".
The minister stated that the outcomes of ESIC 'Chintan Shivir' will help in
fulfilling the Prime Minister's vision of 'Swasthya Se Samridhi' by bridging the
gap between policy and execution.
It will further prove a game changer and benefit all the Shram Yogis and their
dependents in a big way, he said.
The two-day ESIC 'Chintan Shivir' -- first of its kind in the history of ESIC --
concluded with landmark outcomes and far-reaching recommendations for expansion
and improvement in the service delivery mechanism.
Another outcome or recommendation is about convergence with PMJAY (Pradhan
Mantri Jan Arogya Yojana) in all the districts of the country (where PMJAY is
implemented) for better accessibility of services to beneficiaries, leading to
pan-India portability.
It was also recommended that the Centers of Excellence for occupational health
to be set up to promote indigenous research on occupational diseases in India.
Norms need to be revised for the sanctioning of new dispensaries and hospitals,
keeping in consideration the latest technological advancements and future
beneficiaries.
As per the suggestions, ESI Hospitals to work in a timebound manner for Ayushman
Bharat Digital Mission (ABDM) compliance and adoption.
ESI will explore developing health facilities/medical colleges in the
Aspirational districts of the country.
Mechanisms for better utilisation of under-utilised hospitals and services need
to be evolved, including recruitment of clinical staff and access to the
facility for the beneficiaries.
It was recommended to leverage ESIC hospitals for the expansion of PG
(post-graduate) medical seats.
Capacity building is to be planned at three levels - individual, team and
institutional levels by leveraging technology.
ESI Corporation decisions should be shared with all the stakeholders for
effective implementation, leading to the involvement of field functionaries of
ESIC.
ESIC should develop functional norms and standards for design and material to
help develop concept plans for new projects for faster completion, it was
suggested.
Yadav also informed that the recommendations of ESIC 'Chintan Shivir' and other
issues of the Ministry of Labour & Employment and EPFO will be taken up and
discussed during the upcoming Labour Ministers' Conference to be held at
Tirupati, Andhra Pradesh, on August 25-26, 2022. PTI KKS KKS BAL BAL BAL
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EXCLUSIVE
NATIONAL INSURANCE AMONG FOUR GOVT-OWNED GENERAL INSURERS GEARING UP FOR MAJOR
REJIG
The four Central government owned non-life insurers are expected to implement a
major organisational restructuring in less than month which would cut down their
costs, free up staff for redeployment and in general improve customer service,
said industry officials.
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The four Central government owned non-life insurers on Thursday planned to
implement a major organisational restructuring in less than a month. This rejig
expected to cut down the insurers costs, free up staff for redeployment and in
general improve customer service, said industry officials.
The four insurers includes, the Oriental Insurance Company Limited, National
Insurance Company Limited, The New India Assurance Company Limited and United
India Insurance Company Limited. Of the four, The New India Assurance is listed
in stock exchanges.
The four companies have hired Ernst & Young (EY) for 10 months as the consultant
for the assignment called "Organisational Efficiencies and Performance
Management in Public Sector General Insurance Companies."
Following are the changes in accordance with the new organisational
restructuring:
* The new structure will follow-Operating Offices/Claims Hubs/Regional and Head
Offices and scraped the older four tier structure -
Branch/Divisional/Regional/Head Offices. And, over a period of time, the
regional offices may also vanish, an industry official told IANS.
* As per the current plan, the claims processing will be taken out of
branch/divisional offices and transferred to claims hub. This will enable the
operating offices-branch/division- to focus on marketing.
* There will be four types of claims hubs: health, vehicle damage, vehicle
third party and general. There are also plans to create an underwriting hub
to streamline the work and also issue the policies faster.
* The National Insurance Company has fixed the date of implementation for
September 15.
"The hubs will be successful if turn-around-time and other performance metrics
are implemented. This way the performance of officials can be measured. The
existing system lacks this aspect," an industry official told IANS.
Further, taking out the claims processing from operating offices can result in
outgo of lease rentals as they are functioning from rented premises.
It will also release staff from the operating offices for efficient
redeployment.
"As it is happening now, the officials can be posted at different departments so
that he/she gets an overall experience and can go up in the corporate ladder,"
the official added.
According to an employee union leader, the management has not called the unions
to brief about the proposed changes.
The four companies have about 44,750 employees operating out of about 6,760
offices.
Already the companies have started to reduce the number of operating offices by
mergers and closures.
As per the request for proposal (RFP) issued by the companies earlier, the scope
of work involves organisational restructuring that is irreversible providing for
digitally enabled workflows to convert operating offices into customer
experience and business development centres while centralising
underwriting/claims/accounts and others into the Regional Hubs;
* Activate all three key channels for retail business growth namely, Agency,
Bancassurance and Alternative channels through suitable sales management,
incentives and rewards processes.
* Create/shift large corporate businesses (both direct and broker-driven) at
select6-8 locations, directly reporting to the Head Office.
* Provide capacity planning framework through manpower redistribution for both
Business Development (BD) and Non-BD roles, with a clear focus on retail
business through pre-underwritten products and simplified processes
* Provide a comprehensive reskilling/up - skilling and capability building
framework for BD, Non-BD, large corporate and vertical teams to cope with the
above restructuring in a confident and motivated manner.
* Handhold the insurers in implementing the new organisation structure across
functions and geographies by providing carefully designed and sensitively
implemented change management approach and communication framework.
* Designing objective and quantifiable KPIs for each unique role along with
their measurable outcomes and its integration with the performance appraisal
system for each PSGIC to achieve y-o-y milestones.
* Based on the above KPIs, creating performance dashboards for each sales and
non-sales staff at the Operating Offices, Regional Offices and Head Office as
well as across functions linked with the core system.
While the majority of the work is centred around a common approach for all the
four insurers, the implementation shall happen at individual company level.
"Broadly, 80 per cent of the proposed assignment shall be allocated towards
creating unified/common strategies/methodology and frameworks while 20 per cent
of the proposed assignment will be allocated towards customising and rolling
them out at individual company level," the RFP told IANS.
(with inputs from IANS)
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EXCLUSIVE
LIC MD RAJ KUMAR ON RISING MARKET SHARE, FALLING VNB MARGINS & MORE
“In Q1, it looks like there is a dip by about 2% in market share, but if you
compare it with the March 2022 figures and the June figures, it is up by 2.1%.
The IRDA figures are already out and in July, we gained about 3% of the market
share. This market share gain has come on the back of very strong performance in
the P&GS business.”
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“Our 13-month persistency has already gone up and we are very strong in the 61st
month persistency. We are almost at the number one position in that sphere but
we believe that there is further room for improving the persistency and we are
working towards that,” says Raj Kumar, MD, LIC.
Your quarterly performance and your VNB margins for the first quarter clearly
were impacted due to your product mix. Going forward, what kind of margin
trajectory do you expect? Could it be in the range of 15% in FY23 and how do you
plan to achieve it?
This is a forward looking statement. We have already said that during roadshows
as well as in previous press conferences that we are looking at a four-five year
horizon when we would like to be at the industry average levels in respect of
VNB margins. At present, our portfolio is heavily tilted towards par business
and we are consciously making efforts to shift to the non-par side also so that
the margins improve.
Your new business premiums have seen a growth of 36% at the current juncture.
How are the premiums faring and could give us a sense of the claims in Q1 and
thereafter?
First the premium income. Last year, the Covid 19 wave was there in the first
quarter of the financial year and so there is a base effect. The second is the
increased movement of our agents in the market and they are able to contact many
customers and the third is the general economic activities and return to normal
business. All these things have been positive for the Life Insurance Corporation
of India as well as for the life insurance industry.
As regards claims, yes, we expected some tail effect of Covid 29 to be there but
overall, the death claims have come down by about Rs 1,400 crore. The maturity
claims are a function of the business which we have booked 10, 15, 20 years back
and the policies are maturing. So that is not a concern because that is already
predicted business.
Overall we have seen the claims come down but the surrenders have gone up. The
surrenders also include the withdrawals in the P&GS business. So strictly
speaking, they are not surrenders but are clubbed as surrenders.
Total number of Covid claims has increased multifold to about Rs 85,000 crore
versus Rs 10,000 crore. What is the reason and is it expected to moderate now?
I think the figures need to be corrected. Rs 85,000 crore death claims are not
there. Claims were higher but not to that extent. Also, that was the previous
year. This year, death claims have come down by Rs 1,400 crore but there could
be some tail effect of the Covid 19 also. We expect the death claims to come
back to the normal range by the end of this fiscal
LIC market share has increased from 65% to 68.5% but compared to the past one
year, it has come down by 2%. What are the factors that have led to the
significant jump?
There are two data points which you are talking about; one is the Q1. In Q1, it
looks like there is a dip by about 2% but if you compare it with the March 2022
figures and the June figures, it is up by 2.1%. The IRDA figures are already out
and in July, we gained about 3% of the market share. This market share gain has
come on the back of very strong performance in the P&GS business and that is
mainly responsible for this kind of growth.
So what contributed to VNB margins going down in the current quarter?
The P&GS funded business was very high in the Q1 and it has continued in July
also. Traditionally, the funded business has less VNB margins than the annuities
and the group business but as the year progresses, this will moderate and we
expect the margins to come back to or may increase further as we change the
product mix.
Your overall AUMs comprise around 75% of death securities. How are you managing
the interest rate risk?
Investment has a number of risks. It is not that only the debt part has risk,
equity part is also risky. Markets can be choppy sometimes and it can impact the
AUM as well as the valuations as happened in Q1 itself. But what we are looking
at is that in the debt segment, the investments are highly regulated in the life
insurance industry and we have to follow those regulations.
But in case of life insurance, the contracts could be between 20 and 50 years,
even more in case of annuities. What we are looking at are long-term papers.
Whenever the paper is available, we go and buy it. The second part is that the
duration management is a continuous process to match the assets with the
emerging liabilities or with the liabilities which are going to be there. We are
also looking at a hedging strategy for the future. However, hedging can be a
two-way weapon also but we are going to have a strong hedging strategy for the
future as well.
How has the investment book fared, how much profit was booked in equities in Q1?
This year, in Q1, the markets were very subdued but still with an efficient
management of whatever we are holding, we have been able to generate a good
profit which is at around plus Rs 5,000 crore in case of the par business and
more than Rs 8,000 crore overall. But we have to see this in the context of the
subdued market. The comparison with the previous year will not be good because
in the previous year, the markets were at a little higher space.
How do you see return from equity markets this year? Will you be able to surpass
your last year’s profit?
This is again a statement which cannot be made upfront. What we look at is how
to manage on the par side, the policyholders reasonable expectations. We need to
have some additional income which will supplement the income being generated
from the debt instruments which is very stable to take care of the
policyholder’s reasonable expectations. So based upon that, we work out what
kind of profits are required to be generated and we are also looking at the
market, where the market conditions are conducive to book profits. But at the
same time, we are very contrarian in nature. When the markets are down we buy
and when the markets are up, we book profits but we do not book all the profits
which are accrued in the equity markets. It is a strategic decision based upon
our requirements.
Talk to us about persistency. Is it normalising or going up?
I firmly believe that there is room for further improvement. We have looked into
four products which were contributing to the lower persistency and we have
redesigned those products which will lead to higher persistency in future. We
have studied various other parameters which impact persistency like the ticket
size in terms of sum assured or urban-rural divide; also, female-male segment
and we are also looking into having revival campaigns so that the book is very
strong.
Our 13-month persistency has already gone up and we are very strong in the 61st
month persistency. We are almost at the number one position in that sphere but
we believe that there is further room for improving the persistency and we are
working towards that.
IRDAI recently came out with certain norms to improve life insurance
penetration. What according to you are the key triggers? Where do you see this
space in the medium term?
Look at the statistical information which is available. The protection gap in
India is at 83%. The insurance penetration is 3.2% and the density is at $59.
When we compare it with the other economies even in Asia, it is quite low and
there is a lot of headroom.
As India is growing, the Indian economy is growing, the benefit of this economic
development will be felt all over the country by all the segments. So we believe
that with the interventions by the regulator to further increase the insurance
coverage, a lot of opportunities are available for all the players including
Life Insurance Corporation of India.
On the IDBI stake sale, when is the expression of interest expected?
This question is actually for the DIPAM, not for LIC of India. DIPAM is driving
that.
But what about the disinvestment of IDBI Bank? Is that on the cards this
financial year?
Whatever the government decides. There are two things. One is the government
decision, the second is the dispensations which were given to us by the RBI as
well as IRDAI. We have to follow those. They had given us certain time lines to
dilute our stake and definitely we will be abiding by those timelines and maybe
a little early.
What we understand is that the government is very serious and has gone on record
saying that they want to divest the stake in IDBI along with a management
control. So obviously a lot of divestment has to happen and LIC will definitely
be looking towards DIPAM for taking it further.
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EXCLUSIVE
EMPLOYEE HEALTH INSURANCE PLATFORM PLUM APPOINTS DISNEY STAR’S SASHA ABRAHAM AS
ITS HEAD OF BRAND
Sasha, through innovative communication and marketing strategies, will work
towards fast tracking the company’s goal of insuring 10 million people by 2025,
said Plum in a media release.
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Employee health insurance platform Plum announced the appointment of Sasha
Abraham, as its Head of Brand responsible for crafting the brand strategy,
driving brand awareness and affinity, and spearheading thought-leadership with
the ultimate goal of being the most trusted and loved insurance and benefits
brand in the world.
Sasha comes with over 13 years of diverse experience in the US, UK and India,
driving marketing efforts for brands like Betty Crocker and the NFL.
More recently, Sasha was the Marketing lead for Women’s Cricket and
International Sports at Star Sports, focussed on growing the profile of
properties like the Premier League, Wimbledon, Women’s cricket, etc. in India.
Abhishek Poddar, CEO & Co - Founder, Plum said, “I am delighted and excited to
welcome Sasha to Plum. I am confident that her vast experience and track record
of shaping and delivering on marketing priorities will help Plum build a strong
brand identity. Plum is on a positive growth trajectory, and Sasha’s brand
marketing acumen will give a further boost to our growth and drive deeper
connections across diverse industries."
Sasha, through innovative communication and marketing strategies, will work
towards fast tracking the company’s goal of insuring 10 million people by 2025.
Plum has steadily expanded its leadership team over the span of a year. It is
constantly working to raise corporate awareness of new-age health coverage and
employee wellness solutions by incorporating them first at its own workplace.
Sasha Abraham, Head of Brand, Plum said, “I strongly believe in the Plum
philosophy that every employee and their family should have access to quality
healthcare. I am highly energised by the team’s desire to create real impact and
am excited to join Plum and help build the brand into something truly special.”
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EXCLUSIVE
UNICORN INSURTECH GO DIGIT GENERAL INSURANCE FILES FOR IPO WITH SEBI
The Bengaluru-based insurance company, Go Digit is expected to raise up to Rs
1,250 crore via the fresh issue and offer 109,445,561 shares in the offer for
sale, as per the DRHP dated August 14, available on ICICI Securities' website.
The total IPO is likely to be worth Rs 3,500 crore ($440 million), according
media sources.
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New age insurer Go Digit General Insurance has filed its Draft Red Herring
Prospectus (DRHP) with the markets regulator, Securities and Exchange Board of
India (SEBI), to raise funds through an initial public offering (IPO).
The proposed issue will be a mix of Fresh Issue and Offer for Sale.
The Bengaluru-based insurance company is expected to raise up to Rs 1,250 crore
via the fresh issue and offer 109,445,561 shares in the offer for sale, as per
the DRHP dated August 14, available on ICICI Securities' website.
The Offer is being made through the Book Building Process, wherein at least 75%
of the Offer shall be available for allocation to Qualified Institutional
Buyers, not more than 15% of the Offer shall be available for allocation to
Non-Institutional Bidders, and not more than 10% of the Offer shall be available
for allocation to Retail Individual Bidders.
Additionally, the company in consultation with merchant bankers to the issue may
consider a pre-IPO placement of equity shares, or any other method aggregating
up to Rs. 250 crores.
If such placement is completed, the fresh issue size will be reduced.
The total IPO is likely to be worth Rs 3,500 crore ($440 million), according to
a person with direct knowledge of the matter, said Reuters. Digit Insurance
declined to comment on the IPO's size, it added.
The proceeds from its fresh issuance are worth Rs. 1250 crore and will be
utilized for the augmentation of the company’s capital base and maintenance of
solvency levels and general corporate purposes, the Insurer said in a media
release.
As per the DRHP, selling holders in the OFS included Go Digit Infoworks Services
(up to 109,434,783 shares), Nikita Mihir Vakharia, jointly with Mihir Atul
Vakharia (up to 4,000 shares), Nikunj Hirendra Shah, jointly with Sohag Hirendra
Shah (up to 3,778 shares) and Subramaniam Vasudevan, jointly with Shanti
Subramaniam (up to 3,000 shares).
The book running lead managers of the issue include ICICI Securities, Morgan
Stanley, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL
Securities and Link Intime India Private Limited is the registrar to the offer.
The equity shares are proposed to be listed on BSE and NSE.
Go Digit General Insurance is a digital full-stack insurance company which
caters to approximately 82.9% of the gross written premiums (GWP) written by
digital full-stack insurance players at Rs 5,268 crore in FY22, making it the
largest digital full-stack insurance player in India, according to the RedSeer
Report.
The insurance company grew at 52.9 per cent CAGR over FY20-22. With 2,568
employees as of March 31, 2022, and 1,936 employees as of March 31, 2021, its
GWP per employee stood at Rs 2.34 crore FY22 compared with Rs 1.6-2.1 crore for
non-life insurance companies in India.
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EXCLUSIVE
AGRI-INSURTECH COMPANY IBISA RAISES SEED FUNDING FROM ANKUR CAPITAL
70% of the global food supply comes from smallholder farmers and more than 50%
of the Indian workforce is into agriculture and allied sectors that contribute
to just 20% of India’s GDP.
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MUMBAI: Agri insurtech company IBISA announced that Ankur Capital, an
India-based leading early-stage venture capital fund focused on transformative
technologies in deeptech and climate tech has joined its seed round.
Luxembourg-based IBISA is on a mission to empower the Agri value chain players
with innovative weather protection insurance solutions.
Founded in 2019, IBISA started its operations in India with the DHAN Foundation
to provide parametric insurance against drought coverage in Tamil Nadu. Fast
forward to now, IBISA is scaling its operations in India with operations in
Odisha, Karnataka, Telangana for coverage against excess rainfall, excess wind
speed and drought. They have also opened a registered office in Feb 2022 in
Bengaluru.
70% of the global food supply comes from smallholder farmers and more than 50%
of the Indian workforce is into agriculture and allied sectors that contribute
to just 20% of India’s GDP. With climate change happening at a rapid scale, most
of these smallholder farmers are vulnerable to unforeseen climatic conditions
that lead to damage of crops. It is not that there are not any insurance
solutions to cater that, but there is a huge gap between the cost of insurance
and the willingness to pay premiums and the relevance of the existing insurance
products and the need of the farmers.
Ritu Verma, Partner at Ankur Capital stated, “The unavailability of data has
hampered the growth of the agricultural insurance industry in developing
countries for decades. Legacy crop insurance involved long manual processes
making them impractical for developing markets where smallholder farming is the
norm, and parametric insurance has historically been unviable due to the lack of
detailed climate-related datasets.”
“Farming is an integral part of both our societal and economic infrastructure.
The impact that the war in Ukraine is having on food prices and food security
seriously underscores the importance of global agriculture. And yet the support
isn’t there. With IBISA, we sought to create technology that would help reduce
costs for the active players in the insurance space. Finding a way to
responsibly protect farmers in the event of extreme weather, by slashing
distribution and operating costs, making it affordable to many groups in the
value chain. And it’s no small challenge. But we’re already seeing results. A
small evidence of our success is the fact that when the Philippines was hit by
Typhoon Odette in Dec 2021, our insurance partner, CLIMBS was able to do payouts
within 10 days after the typhoon hit Philippines with IBISA’s weather protection
coverage in place,” commented Maria Mateo Iborra, CEO & co-founder, IBISA.
Apart from India, IBISA has its operations in New Zealand, Guatemala, Senegal,
Philippines, and other African countries. With strong insurance and reinsurance
partnerships across different geographies and tailor-made products for lack of
rain, excess rainfall, extreme temperatures, excess wind speed and cyclones,
IBISA is able to address the needs of various Agri value chain players.
So whether there is a risk pertaining to defaults, securing the supply chain,
strengthening farmer connection or increasing sustainability practices in
agriculture, weather protection insurance solutions act as a tool to mitigate
unforeseen climate-risks and empower organizations and ultimately farmers to
increase their resilience against climate change.
The company is also in talks with a number of large lenders, food processors,
and agritech clients across different geographies to mitigate their credit risk
against default, reduce their supply chain risks and increase their
sustainability practices in agriculture and strengthen farmer connection with
smallholder farmers in India and abroad.
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