ICICI Lombard General: Strong digital ecosystem underpinned by Cloud

1 Apr 2024 , 12:14 PM

Analysts of IIFL Capital Services attended ICICI Lombard’s (ILOM) Analyst Meet, which showcased the company’s tech-based capabilities and initiatives. ILOM’s digital ecosystem continues to grow, driven by a flexible and robust operating model. Digital ecosystem is underpinned by ILOMs Cloud infrastructure, which provides agility, increases reliability, improves efficiency, and maintains data security. ILOM has been able to do all of the Cloud transformation while driving business value by managing costs. Enormous amounts of data sourced internally as well as externally has enabled ILOM to build data products for conducting business analysis and deriving business insights. ILOM remains focused on driving synergies through its “One IL One Team” initiative. With respect to the noise around GenAI, management believes that while the technology is capable of driving business disruptions, it is still an evolving model. ILOM’s one-stop solution for all insurance and wellness needs, the ILTakeCare App, continues to grow; crossing 9mn downloads. “RIA”, ILOM’s remote chatbot and voicebot, continue to see traction in servicing the DIY journey of a customer. Maintain BUY.

Operational transformation driven by Cloud:

From starting its Cloud journey in 2013, ILOM has become the first large insurer to move all core applications to Cloud. Cloud migration has resulted in faster time-to-market for ILOM. For instance, reduction in time for certain ground-level business sourcing reports by 93%, faster response times for digital quotes etc., and consequently generating business value. With Cloud auto-scaling capabilities, the ability to scale up or down, basis the demand environment has improved; resulting in improved efficiency.

Data organisation and data leveraging critical:

Early digitisation has helped ILOM gather enormous amount of data. Data products are a logical part of the data stored. ILOM has built several data products on the distribution, agents, claims and risk management front; which has enabled conducting business analysis and deriving business insights.

Gen-AI an evolving model:

Management believes that while Gen-AI is capable of driving business disruptions, it is still an evolving model. For large-scale deployment of Gen-AI, ILOM will have to wait for Gen-AI to stabilise and become more mainstream. However, the company continues to experiment with the technology. Maintain BUY.