Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Corporate Update (August 2023)
33 slides from Edelweiss Financial Services's corporate update, Aug 4, 2023
Slide 1: Business Update on General Insurance Business (exchange cover letter)
EW/Sec/2023-24/111 August 4, 2023 BSE Limited National Stock Exchange of India Limited P J Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra (E), Mumbai – 400 001. Mumbai – 400 051. Scrip Code: 532922 Symbol: EDELWEISS Dear Sir/Madam, Sub: Business Update on General Insurance
Slide 2: Business update General Insurance June 2023
Business update General Insurance June 2023 1
Slide 3: Contents
Contents 01 | Industry & Opportunity • Indian non-life insurance growth story consistent, rebounded strongly in FY23 after two covid impacted years 02 | Our Journey • In over two decades of regulatory changes, FY23 a landmark year in enhancing’ ease of business 03 | Our Differentiators • Despite rob
Slide 4: Indian non-life insurance growth story consistent, rebounded strongly in FY23
Indian non-life insurance growth story consistent, rebounded strongly in FY23 after two covid impacted years Insurance market in India is expected reach US$ 300 billion by 2025 Tariffed Era De-tariffication Growth & digital transformation CAGR 17% 64 32 22 10 11 2 3 5 5 FY02 FY05 FY09 FY10 FY13 FY14
Slide 5: In over two decades of regulatory changes, FY23 a landmark year
In over two decades of regulatory changes, FY23 a landmark year in enhancing ‘ease of business’ 2022 2023 Jun Jul Dec Apr Increasing Distribution Enabling speed of Enabling Telematics Opportunity Operational Flexibility Product Launch based Motor Insurance in Expense No of Insurance tie-ups Manageme
Slide 6: Despite robust growth, penetration gaps remain
Despite robust growth, penetration gaps remain Penetration Density Premium % of GDP – 1% , 1/4th Premium Per Capita– USD 22 of Global Average ~5% of Global Average 140 Cr ~95% >50% ~50% Population Properties unprotected Vehicles Of Health Expenditure against Natural Catastrophe uninsured ‘Out of Poc
Slide 7: As do gaps in experience, an opportunity for new players
As do gaps in experience, an opportunity for new players Customer Business model Limited product experience gap inefficiencies innovation • Poor claims experience • Legacy tech stack • Motor insurance largely unchanged & • Complex products & • Analog process design commoditized language • Inadequate
Slide 8: Contents: Our Journey
Contents 01 | Industry & Opportunity • Industry opportunity defined our purpose 02 | Our Journey • We’ve come a long way - Our journey • Recording robust growth over the years – Our performance 03 | Our Differentiators • Our journey demonstrates ability to balance growth with quality & efficiency 04
Slide 9: Industry opportunity defined our purpose: Reimagining Insurance
In pursuit of this Industry opportunity defined our purpose “Reimagining Insurance” To make insurance Easy, Friendly and Transparent. 8
Slide 10: As an insurer changing status quo, we needed an independent identity
As an Insurer changing status quo, we needed an independent identity as a challenger brand 9
Slide 11: Introducing Zuno
Introducing …. A new-age InsurTech company with a single-minded focus on transforming the insurance industry Root of the name Brand personality Brand idea & tagline Key Message Coined from the word Upbeat easy. breezy. surely. Zuno and Chill ‘Zeal’ and ‘Uno’ Approachable Innovative 10
Slide 12: We have come a long way
We have come a long way Customers Locations of Partners Corporate Pin codes Serviced Presence Customers 3 mn+ 18 70 50 1 k+ + + k+ 11
Slide 13: Recording robust growth over the years
Recording robust growth over the years FY21 FY22 FY23 Raheja QBE 72% Aditya Birla 57% Acko General 132% Zuno 49% Go Digit 93% Zuno 53% Aditya Birla 49% Niva Bupa 60% Kotak Mahindra 53% Niva Bupa 41% Zuno 60% Acko General 53% Star Health 37% Care Insurance 52% Niva Bupa 45% Go Digit 37% Raheja QBE 38
Slide 14: Our growth is reflected in all key metrics
Our growth is reflected in all key metrics… FY20 FY23 3.5X GWP (Rs Cr) 159 551P 3.8X Customers(Mn) 0.8 3+P 2.8X Market Share(%)1 0.09 0.24P 2.2X AUM(Rs Cr) 310 687 13 GWP: Gross Written Premium | AUM: Assets Under Management | Market share numbers are excluding Crop.
Slide 15: Consistent improvement in quality and efficiency
…along with consistent improvement in quality and efficiency FY20 FY23 0.7 X COR (%) 182 140P 0.5X Opex (%) 47 23P 1.5X NPS 40 58 2.5X Sales Prod (Cr PA) 1.5 3.7 14 GWP: Gross Written Premium | COR: Combined Operating Ratio | Opex: Operating Expense | NPS: Net Promotor Score | AUM: Assets Under Mana
Slide 16: Contents: Our Differentiators
Contents 01 | Industry & Opportunity • Our three pillars of differentiation - 02 | Our Journey • Innovative Solutions • Efficient digital delivery model 03 | Our Differentiators • Great experience 04 | Way Forward 15
Slide 17: Our three pillars of differentiation
Our three pillars of differentiation Great Innovative Efficient digital delivery model experience Solutions 16
Slide 18: Product Innovation to address evolving customer needs
‘Product Innovation” to address evolving customer needs Switch 2.0- India’s first mobile telematics-based motor insurance, engineered in-house Digital OPD - covering the uncovered everyday health expenses PAYD (Pay-as-you-drive), PHYD (Pay-how-you-drive) Embedded Sachet Products - End to End digital
Slide 19: Focus on preferred product segments, reflected in market share increase
With a consistent focus on preferred product segments, reflected in market share increase Motor Product Mix 0.52% Growth Mkt Share 0.41% 4% 8% 7% 7% FY20 FY21 FY22 FY23 0.25% 0.37% 0.18% Zuno 184% 46% 77% 52% 0.28% 44% 36% 37% 41% 0.16% Industry 7% -2% 4% 15% 0.11% FY20 FY21 FY22 FY23 % of Total Ind
Slide 20: Our three pillars of differentiation
Our three pillars of differentiation Great Innovative Efficient digital delivery model experience Solutions 19
Slide 21: Multi-channel distribution on digital rails
We have a multi-channel distribution on digital rails Partner Acquisition – Digital partner Customer Acquisition through Customer Retention Platforms – Cross / onboarding through IPOS EDGE/ Fiber API upsell products & value- added services Omni-channel Digital Distribution Insurance Brokers Digital
Slide 22: Supported with impactful ecosystem partnerships
Supported with impactful ecosystem partnerships OEMs New-age & Digital Partners NBFCs 21
Slide 23: Digital platform to enable efficiency, experience and innovation
And a digital platform to enable efficiency, experience and innovation Scalable Archicture – Interoperable stack Digital Policy Jarvis, agile and API Cloud Native, – Open API Issuance – first Motor Pricing Microservices driven Gateway Paperless from Day1 engine – Internally developed Digital Motor C
Slide 24: First in Industry telematics embedded app
Leading to ‘First in Industry’ telematics embedded app Zuno App More than just another app #DriveLessPayLess India’s First Telematics Based – On Demand Personalized Insurance Powered by Zuno App Track driving behaviour , get rewarded, drive safer #DriveBetterPayLess Services on Finger Tips – File Cl
Slide 25: Robust digital delivery metrics
And robust digital delivery metrics Digital Issuance Unassisted Transactions Digital Payments 99.8% as of FY20 70% as of FY22 65% as of FY20 99.7% as of FY23 85% as of FY23 92% as of FY23 Digital Motor Claims Survey AI based claims intimation (1) APIs offered 0.5% as of FY20 0% as of FY20 20 as of F
Slide 26: Our three pillars of differentiation
Our three pillars of differentiation Great Innovative Efficient digital delivery model experience Solutions 25
Slide 27: Unwavering focus on Customer Experience
We have walked the talk… with unwavering focus on Customer Experience 1 2 3 60 Sec buy journey for Realtime digital NPS – Instant policy issuance instant feedback car insurance 4 5 6 BOLT- digital survey for Infinite Cashless Network 1st Telematic embedded with emergency cashless motor claims – fast
Slide 28: Many experience enhancing firsts to our credit
With many experience enhancing firsts to our credit 1st Cloud Native Insurer in India, 100% stack on AWS 1st to launch on-demand usage-based motor insurance 1st to launch OTP based Health Insurance on-boarding 1st to use Voice based AI BOT for motor claims registration 1st Insurer to be present on I
Slide 29: Won multiple awards over the last 5 years
And won multiple awards over the last 5 years Employer Brand Tech/Digital Innovation Customer Experience World HRD Congress 2023 - Happy Future of Insurance summit & Awards Future of Insurance summit & Awards Companies to Work for 2023- Best Digital Innovation 2023 – Best use of innovation for CX Wo
Slide 30: Contents: Way Forward
Contents 01 | Industry & Opportunity 02 | Our Journey • With a strong foundation in place, our path forward is clear • Our next phase targets break-even powered by our digital 03 | Our Differentiators platform 04 | Way Forward 29
Slide 31: With a strong foundation in place, our path forward is clear
With a strong foundation in place, our path forward is clear 1. Business scale up 3. Innovation Motor Tier 2/3 asset light digital distribution models Custom products for EV Bolster Switch Motor Product suite Focus on SME NBFCs/Banks for partnerships Expand footprint within OEM partnerships Health-
Slide 32: Our next phase targets break-even powered by our digital platform
Our next phase targets break-even powered by our digital platform Break-even in the next 36 months Gross margin positive in 12 months Continue growing at 3x of industry 90% unassisted transactions 1000 + APIs driven Partner platforms 75%+ AI & ML driven claims 31
Slide 33: Safe Harbour
Safe Harbour This document may contain certain forward - looking statements, which are tentative, based on current expectations of the management of Zuno General Insurance Limited (Formerly known as Edelweiss General Insurance Company Limited) (“ZGIC”). The results in future may vary from the forwar
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