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ICICI Lombard General Insurance Company Ltd

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BSE Code : 540716 | NSE Symbol : ICICIGI | ISIN : INE765G01017 | Industry : Insurance |


Chairman's Speech

While India has set her sights on becoming a ‘developed nation' by 2047, it is well aligned with IRDAI's vision of ‘Insurance for All by 2047'.

Dear Stakeholders,

Warm greetings to everyone.

Macro Economy

India continues to be the fastest growing economy in the world. With an estimated growth rate of 6.8% in 2024 and 6.5% in 2025, India is projected to remain strong, with the robustness reflecting continuing strength in domestic demand and a rising working-age population.

In the next three years, India is expected to become the third-largest economy in the world, with a GDP of USD 5 trillion and touch USD 7 trillion by 2030 on the back of continued reforms, strong public infrastructure investment and a strengthening financial

The Indian economy has remained remarkably resilient despite uncertainties in the international geopolitical environment, inflationary pressures, climatic changes and supply-chain disruptions.

I am hopeful that the upcoming General Elections will bring about more stability and growth for the Indian Economy and the Country as a whole.

Global Insurance Industry

The global insurance market has grown phenomenally in recent years. From a USD 7,000.00 billion industry in 2024, it is poised to become a USD 10,000.00 billion industry growing at a CAGR of 7.2%.

Change is accelerating all around us, possibly at a faster pace than in any period in history. In fact, the colliding forces of change have been the catalyst that has led to a paradigm shift in how the industry conducts its business and in its overall purpose and role in society. Escalating frequency and severity of global risks, from climate change to cybercrime is intensifying focus on the insurance industry's capacity and readiness to react as society's financial safety nets.

A new middle class has begun to emerge in Asia and other developing economies. In China, India and Southeast Asia, the middle class population is projected to grow to 1.20 billion people by 2030 and make up nearly 14% of the total global population.

According to the Economic Survey 2022-23, aided by a favourable regulatory environment, India is poised to grow at the fastest pace and become the sixth largest insurance market globally, turning into a remarkable USD 222.00 billion market by 2026. Amidst the favourable macros, regulatory changes and positive consumer sentiment, the industry continues to grow.

Low Insurance Penetration & Emerging Risks

Despite industry growth, insurance penetration in India continues to be low. The overall insurance penetration in the country is at 3.8% vis-?-vis 6.5% globally, while the penetration of non-life is a meagre 1%.

India is exposed to many natural catastrophes, including earthquakes, floods, tropical cyclones, drought and wildfires. However, insurance protection against natural catastrophe risks is low, leading to higher economic losses. Also, India's major cities have high population and asset-value concentrations and many are exposed to multiple natural hazards, further increasing the risk.

Today, 93% of natural catastrophes in India are uninsured and the major challenge faced in reducing the protection gap is the limited awareness and risk perception. This scenario underscores more need for insurance coverage, awareness and innovation.

Further, the Indian government and insurance regulator have taken several steps to support the industry growth. This has been further beefed-up by economic growth, increasing incomes, strong demand and consumer confidence

Regulatory Reforms

IRDAI has envisioned a comprehensive insurance framework where every stakeholder is united in the mission of a fully-insured India by 2047, with a strategic focus on tailoring products and innovations and transitioning to a principle-based regulatory system.

While India has set her sight on becoming a ‘developed nation' by 2047, it is well aligned with IRDAI's vision of

‘Insurance for All by 2047.'

The introduction of Expense of Management (EOM) norms has been a key step for non-life insurance companies as well as the policyholders.

IRDAI's decision to de-notify the tariff wordings would enable product customisation in accordance with the ascertained risk, widen the coverage framework and thereby meeting the needs of a larger customer base.

With the Bima Trinity - Bima Vistar, Bima Vahak and Bima Sugam; the IRDAI has enhanced accessibility and inclusivity of insurance. Moving ahead, we will witness introduction of niche products across customer categories and geographies.

With the impetus of regulatory reforms, the industry body has also taken strides towards innovative customer centric initiatives. Cashless Everywhere, introduced by the General Insurance Council has been welcomed by consumers and companies alike, whereby policyholders have access to cashless medical services at a wide range of hospitals.

I am certain, these reforms will benefit the industry, India Inc. and customers at large and align the Indian insurance market with leading global markets.

ICICI Lombard on a Growth

Trajectory

The Company's success is based on five strategic pillars which represent critical aspects of the company's operations

The Company's success is based on five strategic pillars which represent critical aspects of the company's operations and philosophy. and philosophy. These include; Market Leadership, Multi-Channel Distribution, Excellence in Customer Service and Technology, Risk Management Strategy and Capital Conservation.

Since FY2004, we have maintained our position as one of India's largest private sector general insurance players, with a rigorous focus on innovation and an unflinching commitment to provide our customers with best-in-class products and services. A faster than the industry GDPI growth (17.8%) in FY24 has enabled the company to be market leaders consistently.

As we continue to capitalise on existing and emerging business opportunities, we have leveraged the benefit of being a diversified, multi-product and multi-distribution network with a growing presence in Tier 3&4 cities and an expanding network of 128,411 agents.

Excellence in customer service and technology have undoubtedly been paramount to the company's success. Integration of technology across product and customer lifecycle has bolstered our customer-centricity and enhanced customer service. Leveraging of tech capabilities has streamlined processes from anticipating customer needs to providing seamless agile solutions.

The company has outlined a comprehensive risk management strategy. Driven by data analysis and prudent investment management; we have been able to foresee and mitigate potential losses and capitalize on opportunities, creating value for our customers, achieving a sustained and profitable growth. Further, we have continued to strengthen our Enterprise Risk Management (ERM) and Environmental, Social and Governance (ESG) frameworks.

The company follows a proactive approach in maintaining an above industry solvency ratio, strengthening capital conservation. The solvency ratio of 2.62x for FY24 stands as a hallmark of robust financial challenging times, customer-centricity and value creation opportunities.

Transforming Digitally

Digitalisation has helped us in enhancing customer satisfaction. Our advanced tech solutions equip our insurance distributors with the right tools to conduct business and service their customers. By adopting leading practices in Cloud Security, we are expanding the ambit of Information Security (IS).

A strong emphasis on technology has made our product offerings affordable, reduced costs and expanded distribution. It has assisted in streamlining our processes and reducing inefficiencies.

Investment in new technologies including Artificial Intelligence (AI), Machine Learning (ML) and Internet of Things (IoT) has brought about greater efficiencies in issuing policies, claims settlement, fraud control and servicing.

User-friendly, tech-driven end-to-end services and innovative insurance coverage are at the heart of our success.

We have integrated technologies like drones, robotics and data analytics to enhance risk assessment, streamline processes and embedded AI, ML, IoT, robotic process automation and natural language processing to deliver world-class services to our customers.

Our risk management approach is founded on a deep understanding of our customers and their needs. While minimising risks, these capabilities help us design and deliver products and services that meet the evolving needs of our customers.

Creating a Social Impact

We are committed to encourage a secure, healthy and environment friendly way of life through our Corporate Social Responsibility (CSR) and Sustainability programmes. We have touched over 2.0 Million lives to date. Our key initiatives encompass; road safety, clean drinking water, access to primary healthcare, environment conservation and sustainability, eye care for children through employee volunteering and insurance awareness in our designated states.

It gives me immense pride to share that our efforts have made a considerable impact in the communities we work in. Good habits start young, we engage school students for spreading awareness about safe driving and distribute helmets to them and their parents. Road Safety rallies conducted in collaboration with implementation agencies have taken the message of

‘safe driving' deeper. Equipping of traffic police with requisite paraphernalia from barricades to cones and baton lights has enabled them in regulating traffic and disciplining motorists. We have also been supporting rehabilitation of road accident victims through physiotherapy sessions. I am confident that our

Excellence in customer service and technology have undoubtedly been paramount to the Company's success. Integration of technology across product and customer lifecycle has bolstered our customer-centricity and enhanced customer service.

resilience in concerted efforts will help in bringing about a mindset shift towards safe driving and safer roads.

Caring Hands is a beautiful endeavor that gives all our employees who want to do their bit for the society an opportunity to visit government schools and organize eye check-up camps for lesser privileged children. Every year close to 5,000 employees visit over 200 schools PAN India and to date we have been able to serve 4,00,000 school students through Caring Hands.

Installation of water filters as a part of Niranjali initiative, in 3,600+ Government schools in Maharashtra and Bihar has brought down the rate of absenteeism from schools as the number of water borne diseases have come down. Equally impactful has been the installation of solar panels in schools, reducing not just the electricity costs but also the Greenhouse gases (GHG) emissions and ensuring regular attendance in classrooms.

IRDAI with the objective of increasing insurance awareness has assigned to ICICI Lombard select districts in the states of Bihar and Tripura. The company has since carried out multiple CSR and non-CSR initiatives in the two states. From meeting government officials, to initiating State Level Insurance Committee (SLIC) meetings, ensuring participation from all quarters, training Jeevika Didis for spreading insurance awareness, equipping State Traffic Police, helmet distribution, safety rallies and mass awareness initiatives; the team has left no stone unturned to increase awareness and highlight the importance of insurance.

With the support of ICICI Foundation and multiple sector expert NGO partners as our implementing agencies, we are committed to make a lasting impact in the communities where we serve.

Moving Ahead

The insurance industry is poised to evolve further, aligning itself with the developing economy. At ICICI Lombard, we are adapting technology and investing in human capital to navigate the evolving landscape. Our continuous endeavour is to build a strong institution of global repute, size and stature that generates exceptional value for all our stakeholders.

Our ongoing efforts will continue to revolve around adhering to the highest standards of Governance, Risk and Compliance, simplifying our operations and creating a more user-friendly environment for both the employees and our customers. As the insurance landscape changes, we are confident in our ability to adapt and thrive.

As I sign off, this is my last note to you as the Chairperson of ICICI Lombard. It has been an absolute privilege to be chairing India's largest private general insurance company and the second largest general insurance player in the market. Over the last 8 years of my tenure on the Board, I am proud of all that we have achieved as an organisation, including milestones like the Bharti AXA integration. Together all of us have built an organisation which with its diversified range of products, excellent customer service, strong values and ethos and a strong cohesive team, is poised to be the Industry Leader and a force to reckon with. I will always continue to be a staunch supporter and advocate of the Company and wish it the very best.

On behalf of the entire Board of Directors and the Management team, I extend my warmest greetings and express our sincere appreciation for your unwavering support and trust in ICICI Lombard.

Warm Regards,
Lalita D. Gupte
Chairperson