Inv nves estor tor Pres esen entation ation Ag Agenda da - PowerPoint PPT Presentation

Inv nves estor tor Pres esen entation ation

Ag Agenda da Indust ustry ry overvie view Comp mpany ny overview view & str trateg tegy y ICI CICI CI Lom omba bard d pe perfor orma mance nce 2

Ag Agenda da Indust ustry ry overvie view Comp mpany ny overview view & str trateg tegy y ICI CICI CI Lom omba bard d pe perfor orma mance nce 3

In Indust stry ry has wi witnessed essed stea eady dy gr growt wth ` billio ion 964 964 17% 17% 384 384 14% 14% 262 262 18% 18% 114 114 FY2002 FY2007 FY2010 FY2016  Indus ustr try has grown wn at CAGR of 16% in the last 15 years rs  Indus ustr try GDPI I for 9M-2017 : ` ` 915 billio llion n (Gro rowth wth - 31%) 31%) 4 Sour urce: e: IRDAI AI

In Industry stry produc oduct t mix ` billio ion 114 114 262 262 915 915 GDPI 384 384 964 964 10% 10% 12% 12% 15% 15% Property 21% 21% 2% 2% 26% 26% 3% 3% 6% 6% 6% 6% Marin ine 8% 8% 39% 39% 44% 44% Motor 40% 40% 41% 41% 38% 38% Healt lth & PA 27% 27% Crop 28% 28% 24% 24% 15% 15% 9% 9% 2% 2% Others 16% 16% 4% 4% 5% 5% 19% 19% 15% 15% 11% 11% 8% 8% 6% 6% FY2002 FY2007 FY2010 FY2016 9M 9M-2017  Motor and Health contributi uting ng to growth in the industry 5 Sour urce: e: IRDAI AI

In Industry stry - public blic & private vate insurers rers PSUs 48% 48% 50% 50% 54% 54% 62% 62% 96% 96% Privat ate 42% 42% 41% 41% 37% 37% 33% 33% 10% 10% Monoline 9% 9% 9% 9% 5% 5% 4% 4% FY2002 FY2007 FY2010 FY2016 9M 9M-2017 Market size ` billion 114 114 262 262 384 384 964 964 915 915 Insurers 10 10 15 15 21 21 29 29 30 30 PSUs 4 4 4 4 4 Private 6 8 13 13 18 18 18 18 Monoline - 3 4 7 8 6 Sour urce: e: IRDAI AI

In Industry stry snapshot shot Particulars FY2002 FY2007 FY2010 FY2016 H1-2017 ( ` billion) Gross Domestic Premium Income(GDPI) 114.00 262.04 383.74 964.02 607.73 Profit/(Loss) after tax (0.92) 35.53 12.07 32.48 12.99 Return on Equity - 24% 24% 5% 5% 7% 7% 5%* Networth 67.22 163.73 236.84 459.23 492.55 Combined ratio 185.0% 110.7% 119.7% 117.4% 116.0% Expense ratio 91.7% 30.6% 32.4% 32.3% 28.8% Investment book 237.62 595.22 849.65 1,862.83 2,055.92 7 * Annu nualized alized Retu turn rn on Equity ity

Stro rong ng fundam ament entals als for In India a non-life life insuran urance ce sector tor Marke ket t size 15 15 176 176 15 15 32 32 106 106 12 12 27 27 5 7 4 106 106 764 764 US($) $) bn bn Insurance density : 4.50% 50% 60,000 00 4.22% 22% Premium per capita US $ in 2015 4.00% 00% 0-100 50,000 00 100-200 of GDP 3.50% 50% 500-1000 ta US($) > 1000 3.00% 00% 40,000 00 ration % o 2.55% 55% GDP per Capita netration 2.50% 50% 2.44% 44% 30,000 00 2.16% 16% 1.80% 80% 1.79% 79% 2.00% 00% 1.68% 68% Penet 1.63% 63% 1.69% 69% 1.50% 50% 20,000 00 1.45% 45% 1.19% 19% 1.00% 00% 0.72% 72% 10,000 00 0.50% 50% 0.00% 00% - Low penetra netration tion in India ia offer ers s opp pportuni rtunity ty for or growth wth 8 Sour urce: e: Sigma 2015 Swiss ss Re

Ag Agenda da Indust ustry ry overvie view Comp mpany ny overview view and str trateg tegy y ICI CICI CI Lom omba bard d pe perfor orma mance nce 9

IC ICIC ICI I Lomb mbard ard building lding blocks ocks  Strengt gthe heni ning ng actuari rial al capab abil iliti ties Prepar are for  Market expansio ion n through h analytics ics, , new product ucts s growth wth ahead  Focus us on service excellence nce, customer r 2011 11 engage gement nt , d de-commodi diti tizat zation ion of products cts onwards  Strong ng in-hous use teams based service archite hitect ctur ure Preserving rving  Investments ts in technology ogy; ; Robust service platform rm capita tal l in turbule ulent nt  Focus on “Strengthening of Core” phase  Risk management, ment, Customer mer centricity ity, Claims ms 2008 08-201 010 mana nagement, ment, Cost management, ment, Channel nel management nt  Build d base through gh corporat orate book (tariff ffs) s) Build ld a  Set up a s service & I IT platform rm strong ng platfo form rm  Growt wth h through gh direct channe nels ls 2002 02-200 007  Initiate ate retail foray through gh banca cassur urance nce route 10

Business iness performanc formance 156.4% Premium mium growth th  No. . 1 Private vate secto tor insurer urer 18.0% 16.6% 16.2% since ce FY2004 13.6% 3.1% FY2002 to FY2007 FY2008 to FY2010 FY2011 to FY2016 Industry CAGR ICICI Lombard CAGR  Upto to FY2007 – High h grow owth th during ring tariff iff phase ase  FY2008 008 to FY2010 – Conso solid lidati ation n phase se post st de de-tarif tariffi fing ng  FY2011 011 onward ards s – Growth wth in line e with the indus dustr try y thro rough ugh focus us on risk k selection ction and d custome omer r service vice 11

Business iness mix ` billio ion GWP GWP 0.27 30.03 34.32 34 83.07 83 0% 0% 50% 50% 49% 49% 70% 70% 100% 50% 50% 51% 51% 30% 30% FY2002 FY2007 FY2010 FY2016 Whole lesale le Retail il  Polic licy y issuance ance grow own n from m 3.14 millio lion n in FY2007 to 15.80 milli llion n in FY2016 12

IC ICIC ICI I Lomba mbard rd – Focus cus & Objec ectives tives Robust t risk Mu Multi i ch channel manage gemen ent distribu ribution ion Customer er Tech Te chnolo ology y ce centric ricity ity as enabler er Superio rior r investm stment nt performa mance nce & Capital tal ma managem ement ent 13

Robust bust risk k management agement  Use of analytics cs aiding ng in risk sk selectio ection & segment gmentat ation  Pr Property perty- Pr Prefer ferred & Non prefe ferre rred portfoli olio Prici cing ng  Motor – Model, , Location on, , Agent, Manufacturer cturer  NOVA-Innov ovation n & Accel elerat erator or Progr gram am  Robust rese serving ving through ugh actuar arial al methods ods  IBNR rese serves ves assess ssment ent undertak aken quarterly  Asse sess ssme ment of signifi nifican cant major or lines es and sub-lines nes Reservi serving ng  Headed ded by a y an Appointed ted Actuar ary  First st insurer in India to disclose ose rese serving ving triangl angles s in 29 29 Annual report ort  Sprea ead of risk sk across ss panel l of qualit ity re-insur insurers Quality lity  Conse servativ vative e level vel of catastrophe ophe (CAT) ) protectio ection Reinsurer nsurer Fraud  Dedicat dicated fraud control ol unit Control ol  Use of claims ms triagi aging ng & fraud d analyti ytics cs 14

Multi lti-chan channel nel distribution tribution Product contribution Agents 19,800 00 + agents nts/brokers /brokers 9M-2017 Broker kers Property Other 5% 9% 9% Marine Corpo porat ate e : Crop 3% 3% 20% 20% Dir irect ct sales es 1,000 00+ active customers force ce Governme ernment : Health, h, PA, Crop Healt lth & Motor PA 21% 42% 42% 30+ banks/FIs /FIs Banks/F ks/FIs 2100+ active touch points 8,00, 0,000+ 00+ unique e Website site visi sitors ors/m /month nth Call centre 2,00, 0,000 00 calls/mon s/month Bran anches ches 249 branches hes pan India 140+ virtual ual offices ces 15

Customer tomer centri tricit city  Philosop ilosophy: y: Gain customer omer trust t through rough speed ed and nd qual ality ity of servic vice e deliv liver ery y  Mix of in-house se claims s manage geme ment team m and Claim aims ren enowne ned claims s practitione ners manageme nagement nt 100+ + doctors rs, 4200+ hospital als, s, 500+ surveyors   In In-house se service rvice call l centr tre  Increa eased sed focus on risk k mitigat ation on for clien ents  Initi itiatives atives to connect nect with customer omers s and obta tain in insig ight hts s on product oduct and servic vice e ideas eas  # # DoTheD eDifficu fficult; Measure ure wellnes ness s & health throu ough gh wellnes ness s points s with commu munit nity y building ding Custom tomer r throu ough gh social al media engageme gagement nt  Wel elcome ome call – Home, , Health & sampled motor custome mers  Net promoter score e NPS ~ 9000 customers omers contacted acted per month to measur sure e advo vocacy 16

Technology hnology as enabler bler  Self lf sufficie icient nt and easy y to access s solution ution  Policy cy purchas ase e and servi vicing cing  Self f inspecti ection on, , mobile wallet payment ent Customer tomer  Value ue added servi vices ces like e emer ergency cy assista stanc nce, , Service vice & garage age locator or, Fuel shop Acces ess  iPar artne tner, , mobile bile Interme ermediary iary app, p, reva vamp mped ed websi bsite, te, mobi bile le app, p, tabl blet et based sed claim im survey vey etc 17