HDFC ERGO has completely transformed its business model to a digital one in the past 3 years:
HDFC ERGO General Insurance, thanks to its partnership with HDFC Bank, Deutsche Bank, Saraswat Bank, Lakshmi Vilas Bank and L&T Financial Services among others, has the largest bancassurance channel in the industry today. Its geographical expansion across urban and rural India has been a key growth strategy and the company has increased its branch presence from 107 to the current 122 branches across 106 cities as of March 2018. According to Samir H. Shah, ED and CFO of the company, the company issued 789,908 policies in rural areas in the last financial year as compared to 632,452 policies the previous year. “Going forward, we plan to continue to deepen our reach by establishing our presence in new markets and consolidating our presence in existing markets,” says he.
CURRENT FY GROWTH
In Q1 FY2018-19, the company’s retail business grew by 25% on a yoy basis. This was driven mainly by auto and online channels, mainly in its preferred segments of motor and retail health. “Our corporate business grew by 30% yoy, in our preferred segments of property and liability insurance. Our calibrated portfolio strategy, with a focus on preferred segments, helped us achieve this performance and we plan to continue to pursue this strategy during the rest of the current FY,” says Shah.
The company has given key emphasis on educating individuals about the need for insurance in their daily lives. It has used both traditional and online mediums in recent times to communicate about the importance of insurance. It is also associated Harish Bhimani, the voiceover artist of the Mahabharat series, for its radio campaign ‘Voice of Time’. Explains Shah: “The idea was to remind individuals that complaining to God at difficult times is not a solution but rather theyr should take precautionary measures by insuring themselves.”
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