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 |