Go Digit General Insurance Ltd Management Discussions

FY 2024-25

Go Digit General Insurance Limited ("the Company") was incorporated on December 07, 2016, under the Companies

Act, 2013 and is a subsidiary of Go Digit Infoworks Services Private Limited.

Industry Overview

During FY2024-25, the non-life insurance industry grew by 6.2% to 3.08 trillion from 2.90 trillion in FY2023-24. Private multiline insurers grew by 5.0%, public sector multiline insurers grew by 5.5%, Stand-alone health insurers ("SAHI") grew by 16.1% and specialized insurers de-grew by 1.0%. Market share for Private multiline insurers, public sector multiline insurers, SAHI and specialized insurers was 52.9%, 31.0%, 12.5% and 3.6% respectively compared to 53.5%, 31.2%, 11.4% and 3.9% respectively in FY2023-24.

Health business (including personal accident segment) grew by 9.1% to 1.27 trillion from 1.17 trillion in FY2023-24, motor grew by 7.9% to 991 billion from 918 billion in FY2023-24. Commercial segments, which include Fire, Marine, Engineering, Liability and Aviation, grew by 1.1% to 425 billion from 420 billion in FY2023-24. Other miscellaneous segment de-grew by 0.8% to 389 billion from 392 billion in FY2023-24.

On May 17, 2024 IRDA notified that multi-year premium received (net of Goods & Service Tax) for long-term non-motor insurance policies sold on or after October 01, 2024, is recognized as income on a year-to-year basis over the policy period on 1/n basis where ‘n denotes the term of the policy in years.

During March 2025, IRDAI had its 129^th IRDAI Authority Meeting where below agendas were discussed:

1. Reduction in Indian Market Terrorism Risk Insurance Pool (IMTRIP) Rates: A presentation was made for

10% rate reduction for terrorism add-on cover.

2. Implementation of Ind AS: Ongoing efforts to implement Ind AS in the insurance sector, with phased assessments.

3. Risk Based Capital (RBC): Progress on establishing an RBC framework, with Quantitative Impact Study 2 based on March 2025 data.

4. Risk Based Supervisory Framework (RBSF):

Continued development and pilot examinations for

RBSF.

5. Public Awareness Campaign: A pan-India multi-media campaign to raise awareness about the need for insurance is in progress.

6. State Insurance Plan: Initiatives for insurance inclusion across all States/UTs, with a multi-tiered governance model.

Performance Review

Company recorded gross written premium of 10,282 Crore during FY2024-25 vs. 9,016 Crore during FY2023-24, registering a growth of 14.0%, as against private sector multiline insurers growth of 5.0%. Following is the GWP mix and growth of the Company during last 3 financial years.

We aim to make insurance simple. Through innovation and transparency, we believe in delivering a seamless customer product an experience journey in a significant individual would purchase in their lifetime. We are one of the leading digital full stack insurance companies, leveraging our technology to power what we believe to be an innovative approach to product design, distribution and customer experience for non-life insurance products. We offer motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products, which the customers can customize to meet their needs.

The Companys technology platform supports its product design by enabling the incorporation of a modular product architecture and provides the backbone for its application program interfaces ("API"), applications, portals and website that allow customers and partners to engage with the Company conveniently. We are one of the leading digital full stack insurance companies, leveraging our technology to power what we believe to be an innovative approach to product design, distribution, and customer experience for non-life insurance products. We have end-to-end digital capabilities and a digital first approach across customers insurance value chain.

Outlook, Opportunities and Threats

The penetration with respect to Non-Life Insurance Industry remained same at 1 per cent during FY2023-24 as in FY2022-23. In 2023-24, the insurance density in

India showed a modest rise, non-life insurance density increased from USD 22 to USD 25. This upward trend in insurance density has been consistent since 2016-17.¹ Based on rising level of young population and increasing disposable income, the Company is well placed to tap the growing market with its modular product design, technology-enabled distribution and processes and the Companys mission to make insurance simpler. The customer experience is core to what we do. Insurance products have historically been hard to understand and sign up for, and making and settling claims has been cumbersome. We are dedicated to establishing trust and promoting transparency in our relationships with our customers by simplifying insurance and offering easy-to-understand, customizable products that enhance our customers experience.

The Company is invested in Artificial Intelligence and Machine Learning to improve the customer journey across products, product underwriting and claim assessment. The Company believes that these investments should aid in increasing customer satisfaction while also generating better returns for shareholders. Our use of technology and AI-driven microsystems, or bots, to streamline a major amount of our operations across the onboarding, underwriting, servicing and claims processes allows us to deliver a simple and tailored customer and partner experience while keeping our employee base lean. In addition, while our approach requires a certain level of ongoing investment in technology and headcount over time, we expect our overall marginal cost spent to support new business as a percentage of our premiums will continue to decline and ultimately result in increased profitability of our insurance operations as we scale.

We are dedicated to establishing a "partnership" in our relationship with our distributors. Our distribution partners include individual agents, POSPs, corporate agents, motor insurance service providers ("MISPs") and brokers. Our partners range from older agencies to new non-bank financialcompanies, and each has a different way of operating and a different level of technical capability. We understand these differences and extend our technology and expertise to our distribution partners to develop customized solutions that provides them with the tools, products, information and support to effectively target and service customers.

Loss reserves are based on estimates as to future claims liabilities and if they prove inadequate, it could lead to further increases in reserves and materially adversely affect our results of operations. Catastrophic events, including natural disasters, terrorist attack or nuclear disaster, could materially increase our liabilities for claims by customers.

Provide relevant, transparent and customizable coverage to policyholders

Empower distribution partners through innovative use of technology through customized integrations and self-service modules

Leverage databank, utilize Artificial Intelligence and Machine learning to enable algorithms driven strategic decisions

Key Financial Information