In an interaction with Mamta Maity, indiainfoline.com, Vikas Mittal, Deputy CEO-Magma HDI General Insurance said, “For a country where GI penetration is just 0.8% of GDP, degree of change in the mindset is no mean achievement and Magma HDI too has benefitted from that.”
How has COVID-19 changed biz for Magma HDI General Insurance?
COVID 19 has had an impact on “Socio Legal Economic Political and Technological” factors of the country and Magma HDI being part of the ecosystem is not untouched. Key aspects being the opportunity and the mindset. Health Insurance will be the biggest beneficiary and presents a big opportunity. COVID – 19 has done what significant advertisement and promotion would not have achieved. Everyone is keen to buy health insurance. For a country where GI penetration is just 0.8% of GDP, degree of change in the mindset is no mean achievement and Magma HDI too has benefitted from that. Another big change has been the reinforcement of the idea of a frugal mindset. It has caused us to reimagine the business including external and internal landscape.
How is the company innovating to stay relevant?
Customer service and operations are the primary labs for our innovation team. Our latest success story is Robotic Process Automation (RPA) for policy issuance. It has helped us reduce the TAT by 91%, rework on data to less than 1% and overall cost by 95%. One of the keenly researched areas in these times will be new/evolving models of distribution.
What is the digital plan for the company for the next 1 year?
The Company will continue to enhance its digital capability with investment in technology backing the core and allied platforms, improving UI and UX of our portal & other digital assets, and optimizing the website. We will invest in capabilities to make “working from remote” and “doing business from remote” efficient. We will invest in other areas of the delivery chain so that there aren’t any gaps in the post-purchase experience of our customers because of imbalance in tech capability.
What is the General Insurance sector outlook in FY21?
Various reports have categorized the General Insurance industry among those which will be relatively better off in the post COVID world. I don’t claim to be an economist but I sense that the Indian economy will see a see-saw shaped recovery.
We expect the GI industry to grow by 2%, with commercial lines in double digits, motor degrowing by 5%, and health by about 6%. Within health, we expect retail health to grow by 25% yoy. With the prediction of a normal monsoon and recent policy change which facilitates connecting farmer to the buyers, rural demand will find support. The general insurance industry will be able to arrest the fall and we will see flat or marginally positive growth in FY21.
Talk about your journey of growing Magma HDI in last 3 years?
The journey has been an exciting one, the type which causes a rush of adrenaline and serotonin to talk of loosely. We have been continuously building our distribution strength by growing our partnerships and network of agents, investing in technology, launching products and on top of that acquiring customers, a lot of them. We saw our gross written premium growing Rs 560 Cr to Rs 1293 Cr, AUM from Rs 1137 Cr to Rs 2300 Cr, branch network from 125 to 169 and policy issued to 23 Lacs+. We managed to get empanelled with the largest CV manufacturer, largest tractor manufacturer and largest car manufacturer in the country and many other equally important partnerships. Several initiatives in digitization which had started in 2015 are now bearing fruit.
Any new product launches planned?
Yes, we do have a slew of product and enhancements lined up which are under various stages of development and approvals. Please keep watching this space for more.
Who are your major corporate clients? Brief us about the company's footprints in India as well as globally?
In India Magma HDI services close to 1000 top corporate clients across major industries such as Pharma & Petrochem, Steel & Power, Auto, Infra & Manufacturing.
HDI has a presence in over 150 countries. In India, Magma HDI is present in 23 states and UTs, across 155 districts with 170 branches.