Insurtech unicorn, Digit Insurance said that it has crossed Rs 5,000 crore yearly revenue milestone in FY21-22, claiming to be one of the fastest growing private general insurance companies in the country.
The startup has recorded Rs 5,268 crore in gross written premiums in FY21-22 in fourth year of its operations led by its motor, property and health vertical business. The company had raised a cumulative capital of Rs 2,806 crore since its inception and is valued at over $3 billion.
Digit insurance said that in terms of written premiums in a year, the growth was seen at 62 per cent in FY21-22 whereas the industry on an average grew by 10.9 per cent. In FY21-22, across all products, Digit sold over 77.6 lakh policies, an increase of 40 per cent compared to the previous financial year.
Further, the company’s health portfolio saw a growth of 132 per cent over FY20-21, led by group business.
“As a young insurer, this indeed is a moment of pride for us but above all, it is a testament of our endeavors towards making insurance simple and more accessible. The collective efforts of our partners and employees have not only helped us accelerate our growth but has also ensured that more customers understand the importance of having adequate financial cushion,” Jasleen Kohli, MD & CEO, Digit Insurance said.
The company’s Digit’s loss ratio – a metric that represents the ratio of losses to premiums earned – narrowed for both health as well as fire segments. The company’s health loss ratio decreased considerably to 47 percent in FY21-22 from 69 percent in the previous year.
According to a recent report by consulting firm, Redseer, India has one of the least insurance penetrations in the world will add 17 million new policy buyers by 2022 through Insurtech platforms including web aggregators, micro insurance sellers, according to a new Fintech survey by market intelligence platform, Redseer. The report added that COVID has fastened the adoption of digital platforms for buying insurance policies especially health covers. The overall number of insurance policy buyers is estimated to be 30 million by 2022.
Indian Insurtech market is on a strong growth path to grow by ~3x by FY 22, driven by widening internet funnel, increasing awareness amongst customers (Especially millennials), COVID driving growth in health insurance category and other drivers, the Redseer report said. Ends
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