Go Digit Life to invest up to Rs 600 crore as it starts out

12 Jun 2023 , 10:21 AM

In order to become the 26th life insurer in the nation, Go Digit Life Insurance, in which HDFC Bank and Axis Bank have purchased interests, intends to invest 500–600 crore in the first 18 months.

The company, supported by Prem Watsa’s Fairfax and seasoned businessman Kamesh Goyal, plans to introduce its first product in the next 30 days.

According to news reports, ‘a significant portion of the Rs 600 crore will be invested into technology and the company will focus on the protection line of business.’

The number of insurers operating in the life insurance sector grows with the entry of Go Digit, the first expansion since 2011. A 9.9% share in the business has been acquired by each HDFC Bank and Axis Bank in addition to Fairfax and Goyal.

After receiving R1 and R2 licenses, Go Digit earned R3 certification of registration on Friday. The regulator examines the financial standing of the promoters, foreign investors, and the management’s overall character at this point. The regulator also assesses the business plan, anticipated revenue, financial structure, and estimated earnings of the company.

Sanjay Vij, who formerly oversaw bancassurance at HDFC Life, has been named as the deputy CEO, replacing Srinivasan Parthasarathy, who served as the company’s chief actuary.

The Life Insurance Corporation of India (LIC) dominates the market share among the 25 businesses that make up India’s life insurance industry.

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