Go Digit General Insurance Limited · NSE:GODIGIT
Go Digit General Insurance — Investor Day (February 2025)
57 slides from Go Digit General Insurance's investor day presentation, Feb 16, 2025
Slide 1: Regulation 30 intimation letter to exchanges
Date: 16th February 2025 To, To, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G Bandra Kurla Complex, Dalal Street, Fort, Mumbai – 400 001 Bandra (East), Mumbai – 400 051 BSE Scrip Code: 544179 NSE Symbol: GODIGIT Dear Sir/Madam, Subject:
Slide 2: Analyst / Investor Day February 17, 2025
Making insurance simple Value Statements Question the status quo Be Transparent Analyst / Investor Day February 17, 2025 1 PRIVATE AND CONFIDENTIAL
Slide 3: Disclaimer
Disclaimer: This investor presentation may contain certain words or phrases in writing or otherwise which are not statements of historical facts and may be described as “forward-looking statements”. These forward-looking statements generally can be identified by words or phrases such as “aim”, “anti
Slide 4: Business Strengths
Business Strengths High-quality Focus on Predictive Advanced A nimble customer empowering underwriting technology organization with experience distribution models platform a skilled and partners experienced management team 3 PRIVATE AND CONFIDENTIAL
Slide 5: The Numbers
The Numbers: Gross Written Premium (1) Market Share (%) (1,2) Diverse product portfolio (3) ₹7,706 cr 3.3 / 6.1 82 Market share for Total / Motor Active products launched since insurance 2017 0.9 cr policies sold (1) Partner network (3) Digitally enabled claims (3) 6.2 cr 26.2 Lacs 69,527 Customers
Slide 6: Key Performance Indicators [IGAAP]
Key Performance Indicators [IGAAP] ₹ cr Particulars FY2023 FY2024 9M 2024 9M 2025 Q3 2024 Q3 2025 Gross Written Premium 7,243 9,016 6,680 7,706* 2,428 2,677* Net Earned Premium 5,164 7,096 5,115 5,799 1,982 2,084 Net retention Ratio (%) 81.6 85.8 84.3 80.4 87.9 83.8 Loss Ratio (%) 67.2 70.3 69.6 71.
Slide 7: GWP Growth
GWP Growth GWP ₹ cr ₹ cr GWP 2,677 9,016 7,706 7,243 6,680 2,428 FY 2023 FY 2024 9M 2024 9M 2025 Q3 2024 Q3 2025 GWP Industry GWP Mix (%) GWP Growth (%) Industry Growth (%) (1) GWP Mix (%) Growth (%) Growth (%) (1) GWP FY 2023 FY 2024 9M 2024 9M 2025 FY 2024 9M 2025 FY 2024 9M 2025 Q3 2024 Q3 2025 Q
Slide 8: Results: Combined Ratio & Profit after tax
Results: Combined Ratio & Profit after tax Without 1/n Without 1/n Combined Ratio % (1) basis basis Profit after Tax Combined Combined Ratio is 108.2 Ratio is 107.2 & & Expense Expense Ratio Ratio is 36.8 110.3 is 34.3 ₹ cr 108.7 108.7 108.5 108.1 107.4 309 67.2 70.3 69.6 71.4 74.5 72.9 182 129 119
Slide 9: Growing Assets Under Management base leading to higher investment income
Growing Assets Under Management base leading to higher investment income Assets under management Investment Income & Yield Investment Yield % Without capital ₹ cr loss of ₹ 2 cr ₹ cr Investment Leverage 7.3 yield is 5.42 • Times(AUM multiple to Net-worth) 5.41* Without capital *Not annualised Total
Slide 10: Investment Asset Allocation (%)
Investment Asset Allocation (%) Rating Wise Exposure Sector Wise Exposure FY 2023 FY 2024 H1 2025 9M 2025 FY 2023 FY 2024 H1 2025 9M 2025 Equity 1.2 1.6 2.4 2.9 Others 0.9 1.1 1.7 2.4 Reverse Repo 1.4 1.0 0.9 0.6 Money Market 2.0 0.8 0.9 0.6 AT1 Bonds 3.3 10.3 10.8 11.6 Banking and AA- & equivalent
Slide 11: Loss Ratios (%)
Loss Ratios (%) Particulars FY2023 FY 2024 9M 2024 9M 2025 Q3 2024 Q3 2025 Motor OD 69 66 65 67 64 69 Motor TP 69 60 61 66 61 65 Health,Travel,PA 72 94 93 83 106 83 Fire 38 86 96 62 103 63 Marine 91 80 91 42 113 21 Engineering 88 130 165 132 252 188 Other 56 80 76 86 89 91 Total 67 70 70 71 74 73 10
Slide 12: Distribution
Distribution 11 PRIVATE AND CONFIDENTIAL
Slide 13: Distribution Philosophy
Distribution Philosophy Aligned to profit Channel Agnostic Fragmented pools- Steering • Onboarded 65000+ POSPs, • Decision to enter, push or • Customer chooses the 2500+ Agents, 600+ MISPs, exit specific product/ channel 650+ Brokers, 26 Web segment/ geography/ Aggregators partner solely based on pr
Slide 14: Focus Areas and Performance
Focus Areas and Performance Industry Growth % Digit Growth % GWP growth Industry vs Digit – 9M FY 2024-25 Motor Group Health & PA Corporate Lines 58.8% 50.1% 28.2% 16.7% 16.1% 12.4% 11.0% 13.8% 12.6% 7.9% 9.1% 7.9% 7.8% 2.4% 0.8% -6.3% Motor TP Motor OD Group Health PA Fire Engineering Marine Cargo
Slide 15: Renewal is a Large Opportunity – How we are Steering it
Renewal is a Large Opportunity – How we are Steering it Private Car Four-Wheeler • Channels where we can price at customer level, renewal are good v/s Channels where we don’t have price control, renewals are less • We introduced Green Renewals for specific channels • Next Step – Using PAYD to underw
Slide 16: Motor – How we are Steering it
Motor – How we are Steering it BUSINESS STEERING • OEM Broking - Direct Premium Fetching with one OEM Broker • OEM Broking – PAYD/ Win Back – live with one OEM Broker • Non-OEM Broking - Better Price on basis of Additional Factors CLAIMS & NETWORK STEERING • Dealer Categorization – Red/ Green and ch
Slide 17: Group Employer-Employee Health – How we are Steering it
Group Employer-Employee Health– How we are Steering it BUSINESS STEERING • Immense Price Competition, this has further increased with Fire Rates Going up from 1st Jan • Our renewal ratio is less then 50% - market feedback for lost renewal cases is that the market is pricing these cases below claims
Slide 18: Corporate Business – How we are Steering it
Corporate Business– How we are Steering it Industry Updates • Rate hardening for property risk w.e.f. Jan ‘25 and expected to be on similar trend • Any cession to Cross Border Reinsurance (CBR) is subject to collateral requirement of premium withheld @ 50% or Letter of Credit equivalent to expected
Slide 19: Retail Health – How we are Steering it
Retail Health– How we are Steering it Industry Updates • High medical inflation is causing frequent premium adjustments, severely affecting insurance for senior citizens • Restrictions on premium increase in case of senior citizens • Market focussed on offsetting the worse experience of vintage port
Slide 20: People Performance – How we are Steering it
People Performance– How we are Steering it Phase 1: Live • Dedicated Steering team • MIS on Steering – each partner, segment, location Phase 2: Ready to Go Live • Automated dashboards with identification of preferred and non preferred business for branches • Enables faster decision making, decentral
Slide 21: Enabling Sales with speed, efficiency and transparency
Enabling Sales with speed, efficiency and transparency 20 PRIVATE AND CONFIDENTIAL
Slide 22: Motor Underwriting
Motor Underwriting 21 PRIVATE AND CONFIDENTIAL
Slide 23: Motor TP – Digit Vs. Industry
Motor TP – Digit Vs. Industry TP claim number reported in per crore of risk Adjusted TP premium Insurance Company 2022_23 2023_24 2024_25 H1 Go Digit 4.6 3.3 3.5 Insurer 1 5.8 5.6 5.5 Insurer 2 6.6 5.9 6.0 Insurer 3 6.7 6.9 6.0 Insurer 4 7.9 6.7 6.9 Insurer 5 8.2 6.8 7.1 Insurer 6 9.4 8.9 8.6 Source
Slide 24: Machine Learning in Underwriting
Machine Learning in Underwriting Journey So Far Generalized Linear Model Boosting Model Rule Based UW Risk Based Models 2 2 2 2 2 2 2 1 2 4 4 4 5 5 Rule Based UW Risk Score Model Linear Model Historical Model Development Features Feature Model Model Model Selection Development Validation Deployment
Slide 25: Machine Learning Models Advantages
Machine Learning Models Low Underwriting Leakage Freq Difference Observed Results Custom Logics across different channels Average Claim Size Advantages Real Time Implementation Accepted vs Rejected Customization Revenue Loss Vs Expected Loss Prevented 24 PRIVATE AND CONFIDENTIAL
Slide 26: Employee Benefits
Employee Benefits 25 PRIVATE AND CONFIDENTIAL
Slide 27: Group Health – Data as foundation of future
Group Health – Data as foundation of future Data reliability for • Data bank of all quotes getting UW generated over years Health • UW rules looking at multi-year data to claims Historical experience fraud identify data issues detection of group for platform UW • Underwriting teams access multi-year
Slide 28: Group Health – Generalized Linear Model
Group Health – Generalized Linear Model • Helps to identify profitable opportunities in a market that traditionally uses previous years claim experience alone to calculate prospective year premium. • Helps to avoid pit-falls of data manipulation or mis-representation – Exposure rating in smaller gro
Slide 29: Group Health – Quote Intelligence
Group Health – Quote Intelligence • Data bank of all quotes • UW rules looking at multi-year data • multi-year data on UW screens to take decision 28 PRIVATE AND CONFIDENTIAL
Slide 30: Group Health – Quote Intelligence
Group Health – Quote Intelligence • Consistent flow of claims year on year • Coverages have not changed over 3 years • Average claims are increasing at a higher rate than the assumed inflation 29 PRIVATE AND CONFIDENTIAL
Slide 31: Group Health – Quote Intelligence
Group Health – Quote Intelligence • Higher LR in running year due to higher claims per member which is significantly higher than previous 2 years of experience • Coverages have not changed over 3 years • Exceptional claims identified and discount given on pricing. • High per member claims for 2 year
Slide 32: Commercial Lines
Commercial Lines 31 PRIVATE AND CONFIDENTIAL
Slide 33: Rate Movement and GWP Mix
Rate Movement and GWP Mix ✓ Pricing Pressure in Mid Size Segments where highest rate drop has been seen and rates are least, we have actively taken conservative stance on this segment due to loss ratios and high reduction in premium rates ✓ Focus Areas: ✓ Segments upto 500 Cr Sum insured is expected
Slide 34: Tech @ Digit
Tech @ Digit 33 PRIVATE AND CONFIDENTIAL
Slide 35: Quote Intelligence in Group Health
Quote Intelligence in Group Health Our Solution The Problem ✓ Leverage past quote data for data driven pricing tool o Analyze group behavior using past RFQs o Standardized Pricing based on consistent trends ✓ Update past assumptions of group behavior 34 PRIVATE AND CONFIDENTIAL
Slide 36: Quote Intelligence – Underwriter Search Screen
Quote Intelligence Underwriter View - Search Screen 35 PRIVATE AND CONFIDENTIAL
Slide 37: Quote Intelligence – Quote Selection and Comparison
Quote Intelligence Underwriter View (Quote Selection and Comparison) 36 PRIVATE AND CONFIDENTIAL
Slide 38: Quote Intelligence – Quote Comparison Metrics
Quote Intelligence Underwriter View (Quote Comparison – Metrics) 37 PRIVATE AND CONFIDENTIAL
Slide 39: Quote Intelligence – Quote Comparison Main Coverages
Quote Intelligence Underwriter View (Quote Comparison – Main Coverages) 38 PRIVATE AND CONFIDENTIAL
Slide 40: Quote Intelligence – Consistency Flags and Burn Cost
Quote Intelligence Underwriter View (Consistency Flags and Weighted Average Burn Cost) 39 PRIVATE AND CONFIDENTIAL
Slide 41: Quote Intelligence – Premium Calculation
Quote Intelligence Underwriter View (Premium Calculation – System vs Quote Intelligence Premium) 40 PRIVATE AND CONFIDENTIAL
Slide 42: Automating Claims – Motor Admissibility
Automating Claims Motor Admissibility – From Data to Insights Our Solution The Problem ✓ 20+ automated checks × Data based admissibility checks, scattered across different parts of the process ✓ Potential fraud triggers identified at the beginning of the claim journey × Manual comparison process tha
Slide 43: Automating Claims – Motor Admissibility Updated Version
Automating Claims Motor Admissibility – Updated Version 42 PRIVATE AND CONFIDENTIAL
Slide 44: Automating Claims – Motor Auto Assessment
Automating Claims Motor Auto Assessment ✓ AI based automated identification of damage ✓ ML powered recommendation for repair / replacement and damage estimates ✓ Reduces Manual assessment effort and TAT ✓ Reduced the Assessment Process time substantially for Windshield Claims 43 PRIVATE AND CONFIDEN
Slide 45: One API – Partner Portal
One API Partner Portal ✓ Quick API integration ✓ No technical expertise required ✓ Extremely flexible and versatile ✓ Almost 400 active Integrations ✓ 27 Million transactions per month Figures as of January 31, 2025 44 PRIVATE AND CONFIDENTIAL
Slide 46: One API – Integrations Since Inception
One API Our API Integrations Since Inception Growth in the number of API Integrations 11.9M 12.6M 2779 12M 10.5M 2239 1543 4.1 1079 M 758 1.1M 441 90K 687K 130 23 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 Q1 - Q3 No of Policy issuance through API API Integration count Total API count including
Slide 47: One API – Example Integration
One API Example – Integration 46 PRIVATE AND CONFIDENTIAL
Slide 48: Fraud Engine - Next Steps
Fraud Engine - Next Steps Fraud Engine Capabilities to be extended to • Motor Third Party Claims • Non-Motor Underwriting • Non-Motor Claims 47 PRIVATE AND CONFIDENTIAL
Slide 49: Flood Risk Tool
Flood Risk Tool ✓ We are adding more attributes to increase model’s accuracy while reducing false positives ✓ flood risk tool cannot be implemented currently for Motor Underwriting 48 PRIVATE AND CONFIDENTIAL
Slide 50: Industry Analysis
Industry Analysis 49 PRIVATE AND CONFIDENTIAL
Slide 51: IGAAP COR is not the reflection of ROE
IGAAP COR is not the reflection of ROE Digit 9M 2024-25 Additional Particulars Actual Revised(1) Cession(1) Gross Written Premium 7,706 - 7,706 Net Written Premium 6,197 -100 6,097 Net Earned Premium 5,799 -75 5,724 Net Incurred Claim 4,140 -75 4,065 Commission (Net) 1,630 -4 1,626 Operating Expense
Slide 52: IGAAP COR can be improved by upfront booking of reinsurance commission
IGAAP COR can be improved by way of upfront booking of reinsurance commission Motor (9M 2024-25) Actual – One Insurer Digit Actual Digit Revised(1) Digit 9M 2024-25 Particulars OD TP Total OD TP Total OD TP Total Particulars Actual Revised(1) Gross Written Premium 2,320 2,255 4,575 1,692 2,693 4,385
Slide 53: NEP COR is the true reflection of Underwriting Results
NEP COR is the true reflection of Underwriting Results UW IGAAP COR on Insurer Period GWP NWP NEP NIC Expenses Results COR (%) NEP (%) Dec-24 21,354 15,280 14,575 10,244 4,991 -660 102.9 104.5 Insurer 1 Mar-24 25,594 18,166 16,866 11,939 5,907 -980 103.3 105.8 Mar-23 21,772 15,540 14,823 10,726 4,98
Slide 54: Commission is market driven
Commission is market driven 9M 2024-25 (Motor) 9M 2024-25 (Motor Mix %) Actual Actual Particulars Digit Particulars Digit One Insurer One Insurer Gross Written Premium 7,959 4,385 Private Car 53 42 Two – Wheeler 26 29 Comm & Opex 3,311 2,024 Commercial Vehicle 21 29 Total (%) 41.6 46.2 Total (%) 100
Slide 55: Contribution of Capital Gain in Investment Income
Contribution of Capital Gain in Investment Income Investment Income Un-Realized Gain Insurer Period Interest Capital Gain Other Than Capital Gain Total Equity(1) Total income Mix (%) Equity Dec-24 2,577 758 3,335 23 744 754 1,498 Mar-24 2,979 642 3,621 18 227 990 1,217 Insurer 1 Mar-23 2,535 518 3,0
Slide 56: Contribution of Capital Gain in Investment Income
Contribution of Capital Gain in Investment Income Investment Income Un-Realized Gain Insurer Period Interest Capital Gain Other Than Capital Gain Total Equity(1) Total income Mix (%) Equity Sep-24 578 419 997 42 191 561 752 Mar-24 972 256 1,228 21 -7 315 309 Insurer 4 Mar-23 756 75 831 9 -158 13 -14
Slide 57: Thank You
Thank You 56 PRIVATE AND CONFIDENTIAL
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