Mumbai: Digit Insurance, the first company to become Unicorn in 2021, has risen five places to become part of the 10 general insurance companies in full years of operation.
The company will end the first nine months of FY22 with a premium written with gross 3,600 crore – year-to-year increase of 65%.
The company, which was promoted by Veteran Kamesh Goyal Industry and was supported by the Canadian Fairfax Canadian Prem Watsa’s Fairfax Group, has announced the raising of RS 135 Crore funds from existing investors in January 2021, assessing more than $ 1.9 billion (Rs 14,000 Crore).
While the next 12 months challenging for the non-life industry, digits increase operations by increasing market share in motor insurance, expanding distribution, entering new geography and entering the new business path.
“This year has been a challenge for the general insurance industry because of the second wave of pandemic, which slows down business and increases claims.
This year the motorbike business has also been hit because of an increase in the claim of damage itself and the slowdown in sales due to lack of chips throughout the world,” said Goyal.
He added that the company launched a health insurance business led by Covid products and is now present in all business lines.
In addition to the association of distribution and product lines, the company has increased the service capacity of claims and handles 25,000-30,000 claims every month.
“We also show our ability to pay large claims by completing fire insurance claims for Rs 140 Crore within eight months after the event,” said Goyal.
However, the pandemic has taken the victim on the emission guarantee margin, although at a lower level than the industry.
“While most general insurance companies have seen their combined ratios deteriorating by 7-8%, our combined ratio rose 3% in 2021 to around 110% due to the proportion of health premiums lower,” said Goyal.
The combined ratio compares claims and cost management costs for premium income.
“The total expenditure ratio goes down because of the digital capabilities we have built.
We have a management cost ratio of 36% of the written premiums.
This is because the digit becomes a relatively new company and a larger part of retail premium,” said Goyal.
Many companies have a lower expenditure ratio because of the plant insurance business, which is a wholesale business, does not add operational costs.
Goyal said that the latest round of capital maintenance will be enough for companies to grow at least one more year because now it has a 300% solvency margin, which doubles legal requirements.
Digit, the first unicorn of 2021, in 10 top non-soul insurance companies
