Risk

Growth<>Sustainability

23/02/2024
 Objectives- Motor & Health
Motor
• The inputs will lead to
• Identification of sweet spots and adverse business
• Portfolio mix rebalancing
• Product & sub product
• Partner incentive adjustment
• Data capture optimization
• Insurer portfolio mix
• Probable Financial impact of adverse performance- period range
• Profit scoring based on variables, can be linked to Loyalty program

Health
• Understanding demography and its performance
• Age band, Sum Insured Band, Business Type mapping
• Business decision inputs based on performance
 Objectives- UW Exchange
• To objectively understand our book in terms of geographic spread at
product/sub product level along with projected/assumed combined
ratio.
• Drive meaningful business proposition for all insurers i.e. absorb our
demand and create opportunities for expansion
• To be able to shift/move portfolio for balancing combined performance
within insurers
• Use payout elasticity to strengthen partner relationships based on
potential
Insurer
INSURER NOP Avg OD Premium Claim Count - OD Severity - OD Frequency OD LR
BAJAJ ALLIANZ 16,616 7,019 1,867 34,524 20.34% 98.48%
CHOLAMANDALAM 16,723 6,357 2,075 31,328 21.68% 103.05%
FUTURE GENERALI 8,276 10,590 712 31,208 26.12% 78.34%
MAGMA 3,095 8,702 273 37,809 18.93% 78.31%
RELIANCE 6,155 7,882 850 14,980 28.79% 58.79%
Grand Total 50,865 7,589 5,777 30,247 22.33% 91.13%

• Bajaj and Chola with high severity and frequency both leading
to high loss ratio
• Reliance has been managing the severity very well and hence a
better loss ratio
• Overall frequency and severity shall get addressed with overall
corrective actions
Insurer- H1 FY24
TP
INSURER NOP OD SPLIT TP SPLIT Claim Count - OD Clm Inc OD Severity - OD Frequency OD LR Payin% 70% OD COR
BAJAJ ALLIANZ 6,178 64.82% 35.18% 322 1,03,03,030 31,997 19.07% 85.37% 39.24% 24.63% 55.33% 119.20%
CHOLAMANDALAM 5,003 54.96% 45.04% 208 87,87,013 42,245 20.52% 150.40% 31.19% 31.53% 82.65% 145.38%
FUTURE GENERALI 5,893 75.47% 24.53% 300 94,95,110 31,650 26.48% 77.65% 29.99% 17.17% 58.60% 105.76%
MAGMA 1,620 61.90% 38.10% 48 21,14,380 44,050 13.39% 70.95% 30.47% 26.67% 43.92% 101.05%
RELIANCE 3,244 69.94% 30.06% 187 19,80,771 10,592 25.51% 34.87% 22.30% 21.04% 24.38% 67.72%
Grand Total 21,938 66.93% 33.07% 1,065 3,26,80,304 30,686 21.62% 84.22% 31.25% 23.15% 56.37% 110.77%

• The numbers above look better than rolling 12 months

• The severity seems to continue to be on higher side for most insurers
• Frequency is at reasonable levels
• The overall PBP combined seems good with Baja and Chola taking the hit
 Way forward
• Deep mine data to create sustainable and viable business in a thin
margin product (both for insurers and distributors)
• To objectively manage loss ratios to maximize incentive/initiate Portfolio
performance based incentive with suppliers- regular updates on
claims/summary information exchange with field teams
• Business decisions based on the data for curated action plans with
expected outcomes- on a regular basis based on early warning indicators
• Engage insurers for new product propositions- create a governance and
cadence module with insurers to drive this initiative
Age
VehicleAge (group) NOP Avg OD Premium Claim Count - OD Severity - OD Frequency OD LR
0 935 20,564 141 37,057 22.73% 50.84%
1-3 9,365 11,794 1,515 33,034 30.01% 86.98%
4-6 20,951 8,328 2,748 29,548 26.74% 97.50%
>6 19,614 4,174 1,373 27,870 13.83% 94.16%
Grand Total 50,865 7,589 5,777 30,247 22.33% 91.13%

• Age band 4-6- average OD premium double than >6 age. Need
more focus on getting this business- will improve
earning/productivity
• The frequency though high would get addressed with actions on
other attributes. The overall portfolio LR will improve eventually
Insurer-Age
INSURER VehicleAge (group) NOP Avg OD Premium Claim Count - OD Severity - OD Frequency OD LR
BAJAJ ALLIANZ 0 75 24,175 11 38,364 15.15% 41.65%
1-3 1,547 11,350 305 36,889 32.92% 106.03%
Severity of >6 age 4-6 5,901 8,533 829 33,119 25.72% 97.87%
>6 9,093 5,159 722 35,079 14.55% 98.27%
exceptionally high Total 16,616 7,019 1,867 34,524 20.34% 98.48%

for all insurers CHOLAMANDALAM 0

1-3
115
3,319
16,774
10,635
26
668
20,211
36,915
15.61%
29.19%
41.84%
101.37%
except Reliance 4-6 7,541 7,096 1,054 31,702 25.01% 111.59%
>6 5,748 2,710 327 19,591 11.28% 84.78%
Total 16,723 6,357 2,075 31,328 21.68% 103.05%
FUTURE GENERALI 0 210 19,723 16 17,590 25.80% 24.87%
1-3 2,798 12,554 269 31,328 26.70% 68.06%
4-6 4,046 9,979 352 30,680 26.99% 85.68%
>6 1,222 6,542 75 36,165 21.30% 120.80%
Total 8,276 10,590 712 31,208 26.12% 78.34%
MAGMA 0 429 20,803 58 49,758 23.30% 52.29%
1-3 266 12,523 29 55,310 23.04% 102.74%
4-6 1,410 8,093 137 29,390 22.14% 85.24%
>6 990 3,298 49 36,849 10.92% 131.10%
Total 3,095 8,702 273 37,809 18.93% 78.31%
RELIANCE 0 106 22,822 30 37,002 42.65% 81.84%
1-3 1,435 13,339 244 16,825 34.84% 47.42%
4-6 2,053 9,174 376 14,637 41.19% 69.14%
>6 2,561 3,171 200 10,072 15.79% 54.66%
Total 6,155 7,882 850 14,980 28.79% 58.79%
Grand Total 50,865 7,589 5,777 30,247 22.33% 91.13%
Fuel
FuelType NOP Avg OD Premium Claim Count - OD Severity - OD Frequency OD LR
PETROL 26,676 6,347 2,816 24,088 20.37% 78.30%
DIESEL 21,752 9,210 2,606 37,970 24.10% 101.97%
CNG 2,333 6,304 346 21,918 29.44% 104.78%
Electric 65 24,129 7 50,211 16.42% 45.47%
LPG 39 2,460 2 9,880 8.69% 32.07%
Grand Total 50,865 7,589 5,777 30,247 22.33% 91.13%

Overall contribution of Petrol to be increased- apparent

reduced frequency and severity will lead to overall portfolio
improvement
STP-NSTP
StpNstp NOP Avg OD Premium Claim Count - OD Severity - OD Frequency OD LR
TRUE 36,773 7,653 4,230 28,064 23.10% 87.86%
FALSE 14,092 7,422 1,547 36,216 20.46% 98.95%
Grand Total 50,865 7,589 5,777 30,247 22.33% 91.13%

• False numbers indicate inspection done through our process- app

based video upload/QC by PBP or Insurer
• Further data points indicate that online inspection through PBP
App has a better loss ratio. Self inspection is surprisingly better
than vendor inspection Frequency OD LR
BookingMode NOP Severity - OD
Offline 10,591 40,296 20.87% 106.04%
Online 3,501 23,988 19.34% 74.03%
Total 14,092 36,216 20.46% 98.95%
Plan Type

Plan Type G NOP Avg OD PremiumClaim Count - OD Clm Inc OD Severity - ODFrequency OD LR
COMP 45,405 6,927 4,902 14,58,29,513 29,749 21.27% 93.15%
SAOD 5,460 13,096 875 2,89,07,211 33,037 31.02% 82.16%
Grand Total 50,865 7,589 5,777 17,47,36,724 30,247 22.33% 91.13%

INSURER Plan Type NOP Avg OD Premium Claim Count - OD Clm Inc OD Severity - OD Frequency OD LR
BAJAJ ALLIANZ COMP 16,078 6,827 1,732 5,89,02,180 34,008 19.59% 96.28%
SAOD 538 12,767 135 55,54,214 41,142 40.25% 129.93%
Total 16,616 7,019 1,867 6,44,56,394 34,524 20.34% 98.48%
CHOLAMANDALAM COMP 14,996 5,755 1,696 5,09,42,425 30,037 20.37% 104.53%
SAOD 1,727 11,586 379 1,40,62,272 37,104 30.46% 98.00%
Total 16,723 6,357 2,075 6,50,04,697 31,328 21.68% 103.05%
FUTURE GENERALI COMP 6,135 9,611 497 1,57,00,944 31,591 25.42% 85.27%
SAOD 2,141 13,394 215 65,19,474 30,323 27.89% 65.52%
Total 8,276 10,590 712 2,22,20,418 31,208 26.12% 78.34%
MAGMA COMP 3,008 8,503 259 99,84,896 38,552 18.52% 79.65%
SAOD 87 15,568 14 3,37,090 24,078 32.06% 52.24%
Total 3,095 8,702 273 1,03,21,986 37,809 18.93% 78.31%
RELIANCE COMP 5,188 6,538 718 1,02,99,068 14,344 28.42% 65.62%
SAOD 967 15,095 132 24,34,161 18,441 30.94% 40.81%
Total 6,155 7,882 850 1,27,33,229 14,980 28.79% 58.79%
Grand Total 50,865 7,589 5,777 17,47,36,724 30,247 22.33% 91.13%
Sales Cat.
Sales cat. NOP Avg OD Premium Claim Count - OD Severity - OD Frequency OD LR
Retail 35,059 7,700 3,904 29,731 22.24% 88.06%
VRM 7,087 6,382 799 24,302 22.61% 89.90%
PRIME 4,001 7,432 551 41,135 22.83% 129.37%
Retail-Dealership 2,991 10,091 339 33,755 23.91% 77.02%
Life 680 6,934 84 26,382 23.99% 92.57%
Health 591 6,173 51 33,648 16.36% 87.52%
Default 345 5,740 41 26,516 18.69% 87.85%
SME 109 5,133 8 15,410 11.16% 34.19%
- 2 3,586
Grand Total 50,865 7,589 5,777 30,247 22.33% 91.13%

• In certain regions and segments, VRM seems to be doing better. The channel has a
reasonable contribution for us to invest more in the channel
• The incidental channels of cross sell fare better on many attributes. Deep mining may
lead to better numbers and overall portfolio
• Retail dealership is another low hanging fruit for reasonably high Average premium.
Top Make
Vehicle Make NOP Avg OD Premium Claim Count - OD Severity - OD Frequency OD LR
MARUTI 22,886 5,485 2,540 22,740 21.10% 87.70%
HYUNDAI 9,592 7,117 1,213 28,780 25.08% 104.50%
MAHINDRA AND MAHINDRA 4,726 7,979 299 37,510 12.94% 62.26%
HONDA 2,655 8,080 396 30,608 30.52% 113.49%
TATA 2,482 7,779 283 34,286 22.11% 97.82%
FORD 2,367 9,373 273 42,563 26.07% 120.63%
Grand Total 44,708 6,586 5,004 27,444 21.93% 93.10%

• Maruti and Hyundai portfolio is mirroring the industry benchmark

• Mahindra has been a sweet spot for everyone with a much lower frequency coupled
with 15% higher average premium
• Ford being newest obsolete has led to inflated claims. This may continue for a longer
period
• Tata is appearing adverse due to Hexa claims from UP region. Excluding that it
improves by 10%
• Large contribution of Tiago from Haryana and UP leading to adverse claims
Top Model
VehicleModel NOP Avg OD Premium Claim Count - OD Severity - OD Frequency OD LR
SWIFT 3,629 5,401 465 19,763 23.81% 86.88%
WAGON R 2,605 4,165 223 18,415 16.95% 74.14%
i 20 2,310 7,200 353 29,671 28.97% 119.11%
BALENO 2,123 7,810 350 22,755 30.19% 87.67%
SWIFT DZIRE 1,979 4,436 207 21,874 19.23% 92.42%
GRAND i10 1,625 5,611 186 26,001 23.26% 108.05%
ERTIGA 1,500 7,887 182 26,072 23.47% 78.41%
ALTO 800 1,468 2,453 79 13,162 10.46% 56.44%
Vitara Brezza 1,453 8,871 234 38,868 32.00% 138.95%
DZIRE 1,345 7,072 195 21,715 28.32% 87.45%
Grand Total 20,037 5,958 2,474 24,338 23.56% 96.11%

• I20 has been persistently performing bad industry wide, contributed by Diesel variant.
• Vitara Breeza seen as new entrant in adverse category. Out book consists of majority of
diesel which is adverse
Top Region
Vehicle State NOP Avg OD Premium Claim Count - OD Severity - OD Frequency OD LR
Haryana 7,774 8,274 1,040 33,648 24.28% 101.82%
Uttar Pradesh 7,366 7,608 1,037 26,970 26.14% 93.16%
Gujarat 6,133 8,160 752 29,247 25.30% 89.87%
Delhi 4,455 7,668 499 31,963 23.44% 99.68%
Maharashtra 4,194 7,906 433 37,495 20.81% 101.40%
Rajasthan 3,696 6,590 427 36,390 20.10% 111.53%
Karnataka 1,995 6,242 139 20,730 14.42% 49.45%
West Bengal 1,917 5,763 158 20,026 18.18% 63.06%
Tamil Nadu 1,865 6,241 232 24,541 24.28% 103.08%
TELANGANA 1,645 9,346 177 24,138 21.18% 56.25%
Grand Total 41,040 7,617 4,894 30,382 23.06% 93.65%

• Haryana has been adverse across insurers due to inherent nature of the market
• Gujarat and Delhi are mirroring the industry performance
• Maharashtra has been performing bad, however, Mumbai has been better overall (more
data points in the following slide)