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 per cent 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 per cent. 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 per cent as of Fiscal 2021 and Fiscal 2022 and also managed to reduce its net expense ratio from 42.4 per cent for Fiscal 2020 to 38.7 per cent for Fiscal 2022, highlighting its improving operational efficiency. The insurer’s combined ratio (a measure of underwriting profitability) has improved from 117.4 per cent in Fiscal 2020 to 112.7 per cent 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 per cent in Fiscal 2021 to 2.12 per cent 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 per cent YoY in FY22 compared to the private motor insurance market, which expanded by 9.16 per cent measured by GDP. It also had net promoter scores of 78 per cent for non-claims and 86.4 per cent for motor claims as of FY22.
The company over the years has managed to differentiate itself by adopting a distribution model. It has empowered its 32,613-strong partner ecosystem by digitising 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 utilising its data bank have 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 customisable 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).