Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — Edelweiss India Conference 2020
17 slides from Icici Lombard General Insurance's conference presentation, February 2020
Slide 1: Corporate Presentation
icici €Lombard Corporate Presentation
Slide 2: Agenda
Agenda • Industry Overview • Company Strategy
Slide 3: Agenda
Agenda • Industry Overview • Company Strategy
Slide 4: India Non-life Insurance Market - Large Addressable Market
India Non - life Insurance Market - Large Addressable Market Significantly underpenetrated % Premium as a % of GDP (CY18) (US$) 4th largest non-life insurance 5.05 4.26 market in Asia and 15th largest 2.62 2.29 2.14 1.92 1.80 globally 1.06 0.97 0.47 Non-life Insurance penetration in India was ar
Slide 5: Industry has witnessed steady growth
Industry has witnessed steady growth ` billion 54.7% Industry CAGR 1,701 48.9% IL CAGR 1507 12.9% Private player market share 17.2% 17.7% 14.1% 16.6% 36.6% 73.3%* 295 0.1% 101 FY2001 FY2008 FY2018 FY2019 Non-Tariff era Industry GDPI Tariff era Industry 18 years CAGR - 17.0%; IL 11 years CAGR – 14.4%
Slide 6: Industry business overview
Industry business overview Product Mix 7% 6% 14% 19% 3% 16% 19% Others 6% 10% 2% 2% 13% 7% Crop 8% 21% Marine 20% 30% 29% 9% Fire 12% 16% Health & PA 22% 22% Motor TP 29% 29% Motor OD 16% 14% FY2001 FY2008 FY2019 9M FY2020 Source – IRDAI & GI Council 6
Slide 7: Agenda
Agenda • Industry Overview • Company Strategy
Slide 8: ICICI Lombard - Strategy
ICICI Lombard - Strategy Multi-Product Multi-Channel Pan-India Distribution 9 Focused Digital Drive 10 Excellence in Customer Value 11 Robust Risk Framework 12 Sustained Value Creation 13 8
Slide 9: Multi-Product Multi-Channel Pan-India Distribution
Multi-Product Multi-Channel Pan-India Distribution Rank by GDPI among Private Sector Product Mix Multi- Product insurance 13% 14% 8% 8% LoB FY2017 FY2018 FY2019 1% 0% 4% 7% 17% Others 12% Motor OD #1 #1 #1 13% 3% Crop 7% 40% 25% Motor TP #1 #1 #1 Marine 20% 28% Fire Health and PA #1 #1 #1 10% 23% 4%
Slide 10: Focused Digital Drive
Focused Digital Drive Service Excellence Automation & Scale Policy Issuance Employee Productivity Polices sourced - 26.5 mn CAGR 18.1% over 11 years 98% issued electronically Employee hackathon Claims & Servicing Claims honored - 1.6 mn Quality Assurance 23% motor through InstaSpect Improved quality
Slide 11: Excellence in Customer Value
Excellence in Customer Value Claims Settled within 1 month FY2019 Claims Settled within 1 month FY2019 Motor OD Health & PA 99.9% 98.1% 95.9% 84.0% 95.1% 93.1% 89.0% 90.4% 87.7% 89.4% ICICI Company 2 Company 3 Company 4 Company 5 ICICI Company 2 Company 3 Company 4 Company 5 LOMBARD LOMBARD Industry
Slide 12: Robust Risk Framework
Robust Risk Framework Predictive ultimate loss model to improve risk selection Diversified exposure across geographies and products Underwriting Historically lower proportion of losses from catastrophic events than 15 overall market share Spread of risk across panel of quality re-insurers Re
Slide 13: Sustained value creation
Sustained value creation Industry CAGR# 17.3% GDPI (` billion) 10.2% Policies Issued (million) 26.5 144.88 33.07 3.5 FY2008 ** FY2019 FY2008** FY2019 -12.2% Profit After Tax (` billion) Headcount Productivity* (` million) 10.49 14.2 1.03 2.3 FY2008 ** FY2019 FY2008 ** FY2019 * GDPI / Headcount ** Si
Slide 14: Thank you
9 ICICI ELombard Thank you
Slide 15: Impact of catastrophic events: Historical snapshot
Impact of catastrophic events : Historical snapshot ₹ billion Catastrophic Event Economic Insured Our Share of Year Losses losses * Insured losses# Maharashtra, Gujarat, Karnataka, 2019 709.70** 20.00 4.10% Kerala & other states Floods Cyclone Fani 2019 120.00 12.25 2.69% Kerala floods 2018 300.00 3
Slide 16: Reserving Triangle Disclosure – Total
1 Reserving Triangle Disclosure – Total ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2019 Prior AY 10 AY 11 AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 End of First Year 39.01 15.13 20.66 22.53 27.97 35.96 34.16 39.13 49.49 52.41 65.27 One year later 39.86
Slide 17: Reserving Triangle Disclosure – IMTPIP
Reserving Triangle Disclosure – IMTPIP ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2019 AY 08 AY 09 AY 10 AY 11 AY 12 AY 13 End of First Year 2.71 One year later 3.85 2.72 Two years later 4.49 3.85 2.73 Three years later 5.81 4.49 3.98 2.73 Four years later 6
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