Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Corporate Update (May 2024)
37 slides from Edelweiss Financial Services's corporate update, May 14, 2024
Slide 1: Filing cover letter: Business Update on Zuno General Insurance
EW/Sec/2024-25/42 May 14, 2024 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 Zuno General Insuranc
Slide 2: Update on Zuno General Insurance
Update on Zuno General Insurance Formerly known as Edelweiss General Insurance A 100% subsidiary of EFSL May 2024 1
Slide 3: Contents
Contents 01 | Industry & Opportunity • GI Industry expected to reach USD 68 Billion in premium 02 | Introducing Zuno by FY28 • Compelling growth opportunity driven by low penetration 03 | Our Journey and density 04 | Our Differentiators • Several gaps remain to be addressed, an opportunity for new p
Slide 4: Indian non-life insurance growth story consistent, expected to reach USD 68 Billion by FY28
Indian non-life insurance growth story consistent, expected to reach USD 68 Billion by FY28 Tariffed Era De-tariffication Growth & digital transformation 68 35 10 11 5 5 2 FY02 FY09 FY10 FY13 FY14 FY24 FY28E Gross premium (Billion USD) 3
Slide 5: Compelling growth opportunity driven by low penetration and density
Compelling growth opportunity driven by low penetration and density Penetration Density Premium % of GDP – 1% , 1/4th Premium Per Capita– USD 22 of Global Average ~4.4% of Global Average 140 Cr ~95% >50% ~50% Population Properties Vehicles Of Health Expenditure unprotected uninsured ‘Out of Pocket’
Slide 6: Several gaps remain to be addressed, an opportunity for new players
Several gaps remain to be addressed, an opportunity for new players Overwhelming & Opaque Claims Process Paper intensive, iterative, slow turnaround time Limited Product Innovation Motor insurance largely unchanged, inadequate use of ML/AI in pricing/underwriting and claims settlement to improve eff
Slide 7: Contents: Introducing Zuno
Contents 01 | Industry & Opportunity • Independent brand name and identity to reflect the DNA 02 | Introducing Zuno of the organization & challenger mindset • A New Age InsurTech aspiring to transform the GI Industry 03 | Our Journey 04 | Our Differentiators 05 | Way Forward 6
Slide 8: Reimagining Insurance: Easy, Friendly and Transparent
In pursuit of this Industry opportunity defined our purpose “Reimagining Insurance” To make insurance Easy, Friendly and Transparent. 7
Slide 9: 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 8
Slide 10: 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 9
Slide 11: Digital First by Design
Digital First by Design • Tech architecture built for agility , scalability and interoperability o First Cloud Native o Micro-services based Tech Architecture o Standardized APIs for rapid partner integrations 10 API: Application Programming Interface| CRM: Customer Relationship Management
Slide 12: Contents: Our Journey
Contents 01 | Industry & Opportunity • In 6 years time since inception, significant distance 02 | Introducing Zuno travelled • Journey demonstrates ability to balance growth with 03 | Our Journey quality and efficiency 04 | Our Differentiators 05 | Way Forward 11
Slide 13: 6 years since inception, differentiated with key levers and many industry firsts
6 years since inception, differentiated ourselves with key levers and many industry firsts Product Operating Customer Innovation Efficiency Experience “Industry first” telematics 4mn+ Customers 318+ active brokers, based motor add-on 60+ partners, 1,700+ POSPs product 18k+ Pin codes 450 APIs integra
Slide 14: Consistent robust growth, emerging as the fastest in the Industry in FY24
Consistent robust growth, emerging as the fastest in the Industry in FY24 FY22 FY23 FY24 Aditya Birla 57% Zuno 56% Acko General 132% Zuno 53% Kotak Mahindra 40% Go Digit 93% Kotak Mahindra 53% Shriram General 34% Niva Bupa 60% Zuno 60% Acko General 53% Bajaj Allianz 33% Care 52% Niva Bupa 45% Go Dig
Slide 15: We have demonstrated holistic growth
We have demonstrated holistic growth… Growth FY20 FY24 5.4X GWP (USD Mn) 19 102 5X Customers (Mn) 0.8 4+ 3.5X Market Share (%) 0.09 0.32 3.6X AUM (USD Mn) 37 135 14 GWP: Gross Written Premium | AUM: Assets Under Management
Slide 16: Continuous enhancement of quality and efficiency enabled by digital platform
With continuous enhancement of Quality & Efficiency enabled by a robust digital platform Quality & Efficiency FY20 FY24 0.7X COR (%) 182 136P 0.4X Opex (%) 47 18P 1.5X NPS 40 53 3.2X Sales Prod (Mn PA) 15 47 15 COR: Combined Operating Ratio | Opex: Operating Expense | NPS: Net Promotor Score (Overal
Slide 17: Contents: Our Differentiators
Contents 01 | Industry & Opportunity 02 | Introducing Zuno 3 Key Business Vectors • Product Innovation 03 | Our Journey • Efficient Operating Model 04 | Our Differentiators • Customer Experience 05 | Way Forward 16
Slide 18: Product Innovation
Key Business Vectors (1/3) Product 1. Industry first telematics based motor add-on product in India Innovation 2. Consistent focus on motor and health segments 17
Slide 19: Strategy Anchored on Product Innovation
Strategy Anchored on Product Innovation Product Customer Insight Driven Targeting the Digital Data & Analytics driven Modularization for Product Innovation Native Indian Pricing & Underwriting Easy Customization • Active participation in digital ecosystem & Ecosystem marketplaces: ABDM, AA, Bharat B
Slide 20: Creating India's 1st Mobile Telematics Embedded App
Creating India’s 1st Mobile Telematics Embedded App Not just another Insurance app #DriveLessPayLess Using smartphone sensors to track driving behaviour Zuno Driving Quotient – only independent score in the #DriveBetterPayLess country to measure good driving behaviour Drive safer, get rewarded #Swit
Slide 21: We have maintained consistent focus on Motor and Health
We have maintained consistent focus on Motor and Health FY24 Product Mix 8% 5% 41% 47% 51% 48% FY21 FY24 Motor Health Commercial 20
Slide 22: High growth and increasing market share in our segments of choice
With high growth and continued increase in market share in our segments of choice Motor Health FY21 FY24 FY21 FY24 Growth Zuno 46% 32% Zuno 37% 100% Industry -2% 13% Industry 14% 19% 1.08% 0.60% Mkt Share 0.48% 0.25% 0.43% 0.37% 0.15% 0.16% FY21 FY24 FY21 FY24 % of Total Industry % of Private GI % o
Slide 23: Efficient Operating Model
Key Business Vectors (2/3) 1. Digital platform foundations for efficiency, experience and innovation Efficient Operating 2. Multichannel distribution on digital rails for efficient scale- Model ability 3. Leveraging Data & Analytics to improve quality 22
Slide 24: Digital platform foundations for efficiency, experience and innovation
Digital platform foundations for efficiency, experience and innovation Scalable Architecture – 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
Slide 25: Multichannel distribution on digital rails for rapid scalability
Multichannel distribution on digital rails for rapid scale-ability Partner Acquisition – Digital partner Customer Acquisition through Customer Retention Platforms – Cross / onboarding through i-POS EDGE/ Fiber API upsell products & value- added services Omni-channel Digital Distribution Insurance Br
Slide 26: Empowered with impactful ecosystem partnerships
Empowered with impactful ecosystem partnerships OEMs New-age & Digital Partners NBFCs 25
Slide 27: Robust digital delivery metrics to track success
Robust digital delivery metrics to track success Digital Payments Digital Motor Claims Digital Issuance 65% as of FY20 Survey 93% as of FY24 99.8% as of FY20 0.5% as of FY20 100% as of FY24 APIs offered 31% as of FY24 Unassisted Policies 20 as of FY20 AI based claims intimation 358 as of FY24 70% as
Slide 28: Reduced Loss Ratio by leveraging data analytics
Reduced Loss Ratio by leveraging data analytics Quality Underwriting Seamless Claims Declining Loss Ratio Methodology Verification Process Advanced Modeling ML Driven Fraud leveraging contextual 111% Alerts data sources 102% 95% 82% 81% Flexible/Modularized Auto Adjudication Product Structures of Cl
Slide 29: Customer Experience
Key Business Vectors (3/3) 1. Redefining insurance experience – Easy.Breezy.Surely Customer 2. Multiple awards won that stand testimony to our focus on CX Experience 28 CX: Customer Experience
Slide 30: Redefining insurance experience – Easy. Breezy. Surely
Redefining insurance experience – Easy. Breezy. Surely… 1 2 3 Digital Issuance Realtime digital NPS – 60 Sec buy journey for car insurance ~100% since inception Instant feedback Org NPS at Mar’24 ~58 4 5 6 BOLT- digital survey for IVR – less Call Centre 1St to Introduce Infinite motor claims – faste
Slide 31: Multiple awards won that stand testimony to our focus on CX
Multiple awards won that stand testimony to our focus on CX #1 #2 India's Best Emerging General Insurance Company Swift & Prompt Insurer for Claim Management 10th Annual Insurance Summit & Awards 2023 7th Annual Insurance Conclave & Awards #3 #5 #4 Best Use of Predictive Analysis in Fraud Detection
Slide 32: Contents: Way Forward
Contents 01 | Industry & Opportunity 02 | Introducing Zuno 1. Distinct quantitative and qualitative milestones 03 | Our Journey 2. Solid foundation in place, clear path forward 04 | Our Differentiators 05 | Way Forward 31
Slide 33: Aspirations for Key Business Vectors
Aspirations for 3 Key Business Vectors Product Innovation Operating Efficiency Customer Experience • Dominant UBI Motor • 1,000+ API platform network • Zuno app enhancement – all key Insurance player products in one • Expand partnerships footprint • Custom products for EV covering all key mobility O
Slide 34: We have built a strong and scalable foundation
We have built a strong and scalable foundation Digital Insurer with platform designed for scalability, agility & efficiency – committed to make 1 insurance easy, friendly, and transparent Differentiated approach with focus on 3 pillars – Innovation, Efficient Operating Model & 2 Customer Experience
Slide 35: Continued robust growth with operating leverage, getting us to breakeven
Which enables continued robust growth with operating leverage, getting us to breakeven Scale-Up Continue robust growth trajectory at 2X+ of Industry Operating Achieve break even by FY27, next 8-10 quarters Leverage 34
Slide 36: Disclaimer
Disclaimer 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 forward-
Slide 37: Thank you
Thank you
Edelweiss Financial Services — Corporate Update (May 2024) on 6ix