ICICI Securities: Tracking Performance Of New Age Insurers 

ICICI Securities Report

We compare the performance of new age digital insurers Go Digit General Insurance Ltd. (GO) and Acko General Insurance (Acko). Both GO and Acko started in FY18.

Overall gross direct premium income market share of GO/Acko is approximately 1%/0.2% as of FY20.

Go Digital General Insurance has been able to gain 3.9/2.1% market share in motor third party/own damage as of August 2020, higher than 0.4/0.3% market share in motor own damage/third party for Acko General Insurance in August 20, respectively.

Despite higher share of direct mix, market share of Go Digital General Insurance is up 35 basis points and for Acko General Insurance there has been a decline of 2 basis points in 5M FY21 to-date on a YoY basis.

Also as per Google trend results, established market leaders remain very popular compared to new players.

This is despite significantly high marketing budget (advertisement and sales promotion expenses were 20/28% of GDPI for GO/Acko compared to 7.8% for ICICI Lombard General Insurance Company Ltd. in FY20).

We wonder whether rise of digital platforms help traditional insurers better compete with new age insurers.

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