Godigit General Insurance Ltd: A Comprehensive Guide

Introduction

Digit General Insurance Ltd stands as a pioneering force in the insurance industry, redefining the landscape with its innovative and customer-centric approach. This comprehensive guide aims to provide an in-depth exploration of Digit General Insurance Ltd, covering its history, range of insurance products, customer-centric features, and the technological advancements that set it apart in the insurance market.

Step 1: Genesis of Digit General Insurance Ltd Embark on a journey into the origin and evolution of Digit General Insurance Ltd. This section outlines the company’s founding principles, mission, and commitment to transforming traditional insurance models through technology and customer-centric strategies.

Step 2: Comprehensive Range of Insurance Products Explore the diverse range of insurance products offered by Digit General Insurance Ltd. This includes motor insurance, health insurance, travel insurance, home insurance, and other specialized covers. Each product is designed to cater to the unique needs of customers, providing comprehensive coverage and value-added features.

Step 3: Customer-Centric Approach Delve into the customer-centric features that set Digit General Insurance Ltd apart. This section explores the company’s commitment to simplifying insurance processes, offering transparent policies, and ensuring hassle-free claims experiences. Customer testimonials and feedback play a pivotal role in illustrating the effectiveness of Digit’s customer-centric approach.

Step 4: Technology and Innovation Uncover the technological innovations driving Digit General Insurance Ltd. This involves a detailed examination of the company’s use of artificial intelligence, data analytics, and digital platforms to streamline operations, enhance customer experiences, and offer personalized insurance solutions. The Insurtech focus becomes a central theme in understanding Digit’s forward-thinking approach.

Step 5: Awards and Recognitions Highlight the accolades and recognitions received by Digit General Insurance Ltd. This step emphasizes the industry acknowledgment of Digit’s excellence, whether in customer service, innovation, or overall contribution to the insurance sector. Awards serve as external validation of the company’s commitment to excellence.

About Go Digit General Insurance Ltd

Go Digit General Insurance is an insurance company established in 2017 and offers several non-life insurance products. The company is technology-driven and believes in reducing the cost of insurance compared to what its rivals offer. Go Digit General Insurance has a presence in different industries with its products covering motor, travel, personal accessories etc. The company offers car, bike, travel, mobile, and home insurance, with breakdown support and 24/7 assistance. The fast-growing company was quite a popular name due to its IPO announcement, attracting great investors.

Product & service offerings:

  • Go Digit Health Insurance
  • Go Digit Commercial Vehicle Insurance
  • Go Digit Travel Insurance
  • Go Digit Car Insurance
  • Digit 2-wheeler insurance or Go Digit bike insurance for bike

Performance & Revenue

Go Digit General Insurance is one of the fastest-growing private insurance companies in terms of Gross Written Premiums (GWP). The company’s total GWP kept climbing over the fiscal years of 2020, 2021, and 2022.

Financial Year GWP (in Rs. billion) Revenue (in Rs. billion)
2020 22.52 14.19
2021 32.43 22.51
2022 52.68 38.40

The company’s revenue has more than doubled over two years, and its strong position in terms of capital makes it a reliable name among investors. If you are a retail investor seeking long-term investments with substantial profits, you can consider investing in Go Digit General Insurance Ltd.

Go Digit General Insurance IPO

Amidst the buzz of IPO; the company solidified the rumours by filing a draft red herring prospectus (DRHP) with SEBI in August 2022. The fundraising details through the initial public offering involved issuing Rs. 12.50 billion of equity shares and 109,445,561 equity shares held by promoters or privately owned and offered for sale. However, SEBI returned the company’s draft papers in January 2023 under section 5(2) of the issue of capital and disclosure requirement regulation. Go Digit is preparing to revisit the IPO, but the issue size is unclear.

Go Digit General Insurance Ltd. Share Price

Particulars (in lakhs) 2017 2018 2019 2020
Gross Earned Premium Nil 10405 120498 225235
Net Earned Premium Nil 746 49998 124135
PAT -6.23 -7013 -27064 -17525
Net-Worth 278 27365 47800 112234
No. of Shares 90 3500 6745.562 8168.431

Additional Information

  • Community and Social Initiatives: Showcase any community or social initiatives undertaken by Digit General Insurance Ltd, emphasizing its commitment to corporate social responsibility and contributing to societal well-being.
  • Digital Platforms and User Experience: Explore the user-friendly digital platforms and interfaces provided by Digit. Whether through mobile apps or online portals, the company’s commitment to seamless user experiences contributes to its appeal.
  • Future Vision and Expansion Plans: Offer insights into Digit General Insurance Ltd’s future vision and expansion plans. This could include entering new markets, introducing innovative products, or further leveraging technology to enhance its services.

By navigating through these steps and additional information, individuals can gain a comprehensive understanding of Digit General Insurance Ltd. Whether seeking insurance coverage or exploring the dynamics of the insurance industry, this guide serves as a valuable resource for anyone interested in the innovative and customer-centric approach of Digit General Insurance Ltd.

GO DIGIT General Insurance Limited IPO Products :

  • Motor Insurance:Includes personal insurance for cars and motorcycles, as well as commercial insurance for rickshaws, taxis, and trucks. In Fiscal 2022 and Fiscal 2021, motor insurance offerings generated ₹3,275.75 crores and ₹2,432.83 crores of GWP, or 62.2% and 75.0% of our total GWP, respectively. This level of premium accounted for a market share of 4.5% and 3.5% respectively, of the total motor insurance premiums written by all non-life insurers in India, on a GWP basis, during the same time period, according to the RedSeer Report.
  • Health Insurance:Includes group and retail accident and medical insurance, such as corporate group health and individual health insurance, with a variety of standard coverage plans, as well as optional coverage. Health insurance is also one of our core product offerings, which accounted for 12.8% of the GWP in Fiscal 2022. The company has achieved a market share of 0.8% in Fiscal 2022 in the overall health insurance market in India.
  • Property and  Engineering  Insurance:Includes  insurance  covering  homeowners  or  personal  property, commercial  insurance covering shops, factories, or offices, engineering insurance, and fire  insurance, typically intended for individuals, entrepreneurs, micro-to small-to-medium-sized enterprises
  • Travel Insurance:Includes  international  travel  and domestic  flight  amendment,  no-show,  cancellation, and delay insurance, including travel to or from the United States
  • Personal Accident Insurance:Include individual and group personal accident insurance. Group personal insurance can cover employment and non-employment relationships, including credit-linked group insurance, or policies that repay certain debt obligations in the case of death or covered serious illnesses.
  • Liability Insurance:Includes legal liability insurance, workmen’s compensation, public liability, product liability, management liability, and professional liability. Legal liability insurance protects individuals or institutions from legal liability arising out of any third-party bodily injury, third-party property damage, or third-party financial loss caused by the actions of the insured.

GO DIGIT General Insurance Limited IPO Financial Analysis:

Particulars FY-22(in cr.) FY-21(in cr.) FY-20(in cr.) CAGR FY20-22
Revenue 3759.44 2185.03 1364.82 40.2%
Operating cost 2679.05 1506.76 899.76  
Gross profit 1080.39 678.27 465.06 32.4%
Gross profit margin % 28.74% 31.04% 34.07%  
Other Income 81.49 66.93 54.35  
Empl. Cost 182.96 132.36 121.12
Other exp 584.27 307.32 187.52
EBITDA 394.65 305.52 210.77 23.3%
EBITDA Margin% 10.50% 13.98% 15.44%  
Depreciation 12.43 8.96 6.53
Interest 12.36 7.61 6.63
Advertisement cost 663.53 407.49 359.63
PBT -293.67 -118.54 -162.02 21.9%
Total tax 0 0 0
PAT -293.67 -118.54 -162.02 21.9%
Dep./revenue% 0.33% 0.41% 0.48%
Int./revenue% 0.33% 0.35% 0.49%

GO DIGIT General Insurance Limited IPO Segment analysis:

Segment FY-22(in cr.) % FY-21(in cr.) % FY-20(in cr.) %
Fire Insurance 63.17 1.68 41.82 1.91 17.45 1.28
Marine Insurance 1.04 0.03 0.92 0.04 0.04 0.003
Miscellaneous Insurance 3695.23 98.29 2142.29 98.04 1347.33 98.72
Total 3759.44 100.00 2185.03 100.00 1364.82 100.00

GO DIGIT General Insurance Limited IPO Strengths:

  • GO DIGIT General Insurance Limited promotes a high-quality customer experience by providing Relevant, transparent, and customizable coverage, Simple, understandable documentation, and Straightforward, efficient, paperless processes.
  • GO DIGIT General Insurance Limited has exhibited an ability to benefit from growth in the primary market and capture market share. In Fiscal 2022, it achieved 62.4% GWP growth as compared to Fiscal 2021, and with the Offer, increased its market share among the overall general insurers from 1.6% in Fiscal 2021 to 2.3% in Fiscal 2022 in terms of total GWP from private and public general insurers.
  • GO DIGIT General Insurance Limited has modular APIs that allow it to share data between the systems and the partners’ third-party website and/or portal in a specified manner, allowing it to reduce human intervention. The company integrates APIs in the business across products for policy issuance, policy servicing, payments, and claims.
  • GO DIGIT General Insurance Limited has used its own channels such as its website, partner portals and social media accounts, to communicate its approach to insurance and promote its work. The company has appointed marketing associates and managers to increase public awareness and build the brand image. It has also invested in an advertising campaign with its brand ambassador, with the objective of increasing awareness of the brand across all products nationally.

GO DIGIT General Insurance Limited IPO Risk factors:

  • GO DIGIT General Insurance Limited has a track record of reporting losses, and may not achieve profitability in the near future. The company incurred a loss after tax of ₹ 293.67 crores in Fiscal 2022, ₹ 118.54 crores in Fiscal 2021, and ₹ 162.02 crore in Fiscal 2020.
  • Catastrophic events, including natural disasters, terrorist attacks, or nuclear disasters, could materially increase the liabilities for claims by customers, result in losses in the company’s investment portfolios, and have a material adverse effect on the business, financial condition and results of operations.
  • GO DIGIT General Insurance Limited is dependent on the “Go Digit” and “Digit Insurance” brands. The business may be subject to periodic negative publicity, which could have a material adverse effect on the business, financial condition, results of operations, and prospects.
  • GO DIGIT General Insurance Limited 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 its results of operations.

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