Go Digit General Insurance Limited (Digit), one of India’s fastest growing insurance players#, completed five years of operations this week. The company, which began its operations in October 2017 with a mission of simplifying insurance, commands a market share of 4.3% in the motor segment.
Digit has managed to remain one of the fastest growing insurers among private general insurers by GDP# for the last three years (FY20 to FY22), establishing a track record of delivering growth. The company posted a revenue$ of Rs 52.68 billion, Rs 32.43 billion and Rs 22.52 billion in Fiscals 2022, 2021 and 2020, clocking a CAGR of 52.9%. The insurer offers 56 products under motor, health, travel, property, marine, liability, and other insurance lines, and has managed to serve more than 30 million^ people since inception.
Digit had a loss ratio of 74% as of Fiscal 2021 and Fiscal 2022 and also managed to reduce its net expense ratio from 42.4% for Fiscal 2020 to 38.7% for Fiscal 2022, highlighting its improving operational efficiency. The insurer’s combined ratio (a measure of underwriting profitability) has improved from 117.4% in Fiscal 2020 to 112.7% in Fiscal 2022.
“I am excited to see how the Digit story has unfolded in the last five years. The celebration of this milestones truly belongs to our strong team of 2500+ employees and partners who from Day 1 have brought a culture of change and helped the company in achieving these audacious goals. We hope to continue driving our growth by expanding into untapped geographies, acquiring new customers, and growing our product portfolio to meet the evolving needs of the Indian market,” said Jasleen Kohli, MD and CEO, Digit Insurance.
Digit has managed to increase its market share from 1.22% in Fiscal 2021 to 2.12% in Fiscal 2022 in terms of total GDP from private and public general insurers.* Since inception, it has also managed to capture market share in the motor segment. The company’s motor GDP grew by 53.7% YoY in FY22 compared to the private motor insurance market, which expanded by 9.16%# measured by GDP. It also had net promoter scores of 78% for non-claims and 86.4% for motor claims as of FY22.
The company over the years has managed to differentiate itself by adopting a ‘phy-gital’ distribution model. It has empowered its 32,613-strong partner ecosystem by digitising the offline networks. Digitally enabling the partners through 470 AI-driven microsystems and 1,063 API integrations has helped the company reduce fixed costs significantly and scale rapidly without incurring significant overhead expenses.
The predictive underwriting models utilizing its data bank has helped the company to price risk more accurately, and target markets that are expected to be more profitable. It has also managed to promote a high-quality customer experience by providing relevant, transparent and customizable coverage through simple and easy-to-understand policy documentation and designing straightforward and paperless processes. The technological integrations have also helped the insurer reduce claims settlement turnaround time (TAT).
📌 Notes:
All figures are until FY2021-22 unless stated otherwise
*Based on General Insurance Council (GIC) report for FY21-22.
#Based on FY22 segment-wise GDP report for non-life insurers within India by IRDAI.
^As of the date of filing of the Draft Red Herring Prospectus dated August 14, 2022
$Revenue here stands for Gross Written Premiums (GWP) as of specified financial year
📌 About Digit Insurance
Go Digit General Insurance Limited is one of the leading digital full stack insurance companies, leveraging our technology to power what we believe to be an innovative approach to product design, distribution and customer experience for non-life insurance products founded by Kamesh Goyal in 2016. FAL Corporation is one of our Corporate Promoters and one of the shareholders in our corporate promoter entity, Go Digit Infoworks Services Private Limited. With its corporate office headquartered in Bengaluru, Digit aims to make insurance simple and offers motor, health, travel, and property insurance among other non-life insurance products.
Go Digit General Insurance Limited has won the ‘Digital Insurer of the Year’ Award at the Asia Insurance Industry Awards 2021 by Asia Insurance Review and the IFTA 2021 Award for Excellence in InsurTech. The company has been certified as a Great Place to Work for the period January 2022 to January 2023. It also won the “Best Use of Technology to Enhance Customer Experience in InsurTech” award at the Quantic India CX Excellence Awards 2022. Digit Insurance was one of the first insurers in India to offer customization of coverage scope and coverage period group illness insurance covering COVID-19 hospitalization costs owing to its technological capabilities and predictive underwriting abilities.
📌 Disclaimer: Go Digit General Insurance Limited is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its equity shares (the “Equity Shares”) and has filed a Draft Red Herring Prospectus (“DRHP”) with the Securities and Exchange Board of India (“SEBI”). The DRHP is available on the website of SEBI at www.sebi.gov.in, the websites of the stock exchanges BSE Limited at www.bseindia.com and the National Stock Exchange of India Limited at www.nseindia.com, and is available on the websites of the Book Running Lead Managers, namely, ICICI Securities Limited at www.icicisecurities.com, Morgan Stanley India Company Private Limited at www.morganstanley.com, Axis Capital Limited at www.axiscapital.co.in, Edelweiss Financial Services Limited at www.edelweissfin.com, HDFC Bank Limited at www.hdfcbank.com and IIFL Securities Limited at www.iiflcap.com. This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, the Equity Shares or any other securities.
Investors should note that investment in the Equity Shares involves a high degree of risk and for details relating to the same, refer to the Red Herring Prospectus which may be filed with the Registrar of Companies in the future, including the section titled “Risk Factors”. Potential investors should not rely on the DRHP filed with SEBI for any investment decision. The Equity Shares offered in the Fresh Issue and the Offer for Sale (each as defined in the DRHP) have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Accordingly, the Equity Shares are only being offered and sold (i) within the United States to “qualified institutional buyers” (as defined in Rule 144A under the Securities Act) in transactions exempt from, or not subject to, the registration requirements under the Securities Act, and (ii) outside the United States in offshore transactions in reliance on Regulation S under the Securities Act and pursuant to the applicable laws of the jurisdictions where those offers and sales are made. There will be no public offering of the Equity Shares in the United States.
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