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* ICICI Lombard General Insurance (ICICIGI) held a ‘Digital Day’ event to outline its key initiatives in the digital space that will be a vital part of its strategy for improving growth and profitability going ahead.

* Digitization has been implemented across segments within the company and encompasses the entire journey for various stakeholders, including customers, distribution partners and garages. It is also the first large insurer to move all core applications to a cloud platform.

? The company’s ILTakeCare app has been its key initiative in the health segment, which on-boards customers and provides support services. About 35% of app users are non-ICICIGI customers.

* ICICIGI has curated seamless digital offerings for SME clients, which ease the claim settlement process. It has also built in value-added services, which reduce the loss ratios for clients.

* In the motor segment, it has introduced ‘pay as you drive’ and ‘pay how you drive’ – first of its kind. ? For ICICIGI, ~97% of policies are issued digitally, ~95% of policies are automatically underwritten, ~47% of health reimbursements are done through the ‘RIA’ bot, ~66% of group cash claims are approved through AI, and ~75% of motor OD claims are processed through ‘Instaspect”’.

* ICICIGI will continue to invest in digital and tech initiatives to the tune of 1-1.5% of GWP. In the medium term, efficiencies from these investments, along with scale benefits, will improve profitability. We have a BUY rating on the stock with a oneyear TP of INR1,500 (FY25E 22x EPS).

Implementing initiatives across the entire ecosystem

* For ICICIGI, digitization is not just a sales strategy but it is the cornerstone for services. ICICIGI uses data-backed algorithms to suggest right products to customers.

* ICICIGI has launched an instant automated claim settlement system and it is the first in the industry to settle claims of up to INR0.5m using automation. It is the first large insurer to move all core applications to a cloud platform.

* ICICIGI is closely working with digital partners like Ola, Paytm and Goibibo. In FY23, ICICIGI has partnered with ~120 startups (100 startups in FY22), operated pilots with 25 of them (15 pilots operated in FY22) and started services with 7 startups (services with 5 startups in FY22).

* It had set up a fraud management framework in 2007, earlier than the IRDAI’s mandate in 2012-13. This framework is used to investigate 100% of cases in the Motor TP segment for motor theft investigations. Corporate health investigations are in low single digits, while ~10-15% of cases in retail health reimbursements are investigated through this framework.

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