Page 15 - Insurance Times August 2018

Future Generali India In-
surance to deliver insur-
ance policy via WhatsApp
Future Generali India Insurance
Company, said
it will deliver
policies via
WhatsApp for
customer con-
venience. FGII has already delivered
more than 5,200 policies via
WhatsApp as part of the pilot run
that began on June 15. This is a novel
initiative among insurance compa-
nies, it said.
"WhatsApp has wide acceptability
and has grown to become a pre-
ferred mode of communication. It is
convenient for the customer as he/she
gets instant access to the policy docu-
ment. It is one such app that every-
one knows how to use, be it a senior
citizen, working professional or a
young adult both in rural and urban
areas," said KG Krishnamoorthy Rao,
MD and CEO, Future Generali India
Insurance Co Ltd. Customers who
purchase or renew policies with FGII
would now receive an instant mes-
sage on WhatsApp with the confirma-
tion text, along with an e-mail, apart
from the physical policy document.
Rao said that the use of instant mes-
saging service like WhatsApp has the
potential to reshape the insurance
industry with increased level of cus-
tomer engagement. "For FGII, tech-
nology-driven efficient customer ser-
vice is of prime importance," he said.
In 2016, FGII embarked on a digital
transformation journey with the
launch of its in-house motor claim
settlement platform i-Moss, which
ensured onthe-spot settlement of
most motor insurance claims filed.
Earlier this year, the company
launched Intelligent Video Stream-
ing and Settlement (iViSS), a video-
based motor claim settlement facil-
ity for customers.
Private General insurers may need capital inclusion
of Rs. 1,200-3,000 cr to maintain growth rate: ICRA
Private sector general insurers will require Rs. 1,200 crore to Rs. 3,000 crore
of capital infusion in the current fiscal to maintain
the current growth rate of 17 per cent to 20 per
cent according to a report by rating agency ICRA.
While some private-sector players reported an im-
provement in the solvency ratio over the past few
years with a median of 1.78 as on December 31, 2017,
the solvency levels of public-sector general insurers
showed some improvement in the first nine months of 2017-18, the report said.
"There was some respite in the nine months of last fiscal with the median
solvency ratio of PSU general insurers climbing at minimum levels. However,
it should be noted that at least there of the four PSU insurers have used a
part of fair value adjustment for solvency calculation," it said.
While PSU insurers have the option of meeting a part of their capital require-
ment from their equity investments, their private sector counterparts will
have to look at external sources, ICRA said.
"PSU insurers are likely to meet a large part, if not all capital requirements,
through the large unrealised gains on their equity investments, which stood at
Rs. 47,100 crore as on December 2017. Of this, nearly 30 per cent has been
factored for solvency calculation by the three PSU general insurers," it added.
The report also said that insurers should look at raising Tier 2 bonds to raise
their solvency levels. Already, insurance companies have raised nearly Rs.
2,580 crore through these bonds to bolster their solvency levels.
ICICI Lombard net profit jumps 35%
ICICI Lombard General Insurance registered a 35.1 per cent increase in net
profit in the quarter ended June 30 at Rs. 289 crore as against profit of Rs.
214 crore in the first quarter of 2017-18. The Gross direct premium income
(GDPI) increased by 13.7 per cent to Rs. 3,774 crore in the first quarter of
this fiscal, compared to Rs. 3,321 crore a year ago. The average industry
growth for the period was 12.2 per cent.
"Market share increased to 10.1 per cent in the first quarter of the fiscal, com-
pared to 10 per cent a year ago," the non-life insurer said in a release. ICICI
Lombard is the largest private sector non-life insurer in India based on GDPI in
2017-18. Bhargav Dasgupta, Managing Director and CEO, ICICI Lombard, said
the insurer has been growing above the industry average, except in segments
of motor third-party and crop insurance. "We are reasonably optimistic that
the industry will grow in a range of 15 per cent to 20 per cent in the next few
years," he said.
The insurer's combined ratio improved to 98.8 per cent in the first quarter of
2018-19 from 102.4 per cent in the first quarter of last fiscal. "This was driven
by a reduction in loss ratio to 76.9 per cent in the quarter ended June 30, 2018,
from 78.1 per cent a year ago, as well as a decline in the expense ratio (net) to
21.9 per cent in the first quarter of the fiscal from 24.3 per cent a year ago,"
it said. Its solvency ratio also improved to 2.04 times in the first quarter of the
fiscal against 2.13 times on June 30, 2017, and 2.05 times at March 31, 2018.
The Insurance Times, August 2018 15