ICICI Lombard General Insurance Company Limited, one of India's leading non-life insurers, has announced its approval for an investment of ₹50 million in Bima Sugam India Federation ("Bima Sugam"). This significant move follows the company’s commitment to enhancing its presence in the insurance industry and supporting the initiative of Insurance Regulatory and Development Authority of India (IRDAI) to create a centralized electronic insurance marketplace.

About Bima Sugam

Bima Sugam is a not-for-profit entity, incorporated on June 18, 2024, under Section 8 of the Companies Act, 2013. The purpose of Bima Sugam is to establish, facilitate, develop, operate, and maintain an electronic marketplace that serves the insurance stakeholders. The platform aims to improve access to insurance services and contribute towards IRDAI's vision of ‘Insurance for All’ by 2047, offering a wide range of services that simplify and streamline the insurance process.

The company was formed in response to IRDAI's Bima Sugam - Insurance Electronic Marketplace regulations of 2024. This platform is designed to strengthen the customer experience, improve access to insurance products, and provide more effective avenues for insurers and customers to interact.

ICICI Lombard’s Role and Contribution

ICICI Lombard’s ₹50 million investment will be its contribution as a non-life insurer in the equity capital of Bima Sugam. The Board-approved investment includes the purchase of 50 lakh equity shares with a face value of ₹10 each, at par. This will help build the capital structure of Bima Sugam, with ICICI Prudential Life Insurance, a promoter group entity, also contributing to the equity shareholding.

ICICI Lombard’s contribution forms part of an aggregate investment that will not exceed 10% of the paid-up equity capital of Bima Sugam, contingent upon a corresponding increase in the authorized share capital of the company. This move underscores ICICI Lombard’s commitment to the development of an electronic insurance marketplace that is inclusive, customer-centric, and aligned with the government’s broader goals for the insurance industry.

Regulatory Approvals and Timeline

The investment by ICICI Lombard has been made in compliance with the IRDAI’s guidelines, which granted general approval for investments in Bima Sugam, per a letter issued on October 26, 2023. The regulatory body’s approval was crucial to ensure that the investment aligns with industry norms and supports the larger goal of improving access to insurance products across India.

The company anticipates completing the transaction within the statutory timelines, adhering to all necessary regulations and ensuring a smooth transfer of funds.

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Why This Investment Matters

The investment in Bima Sugam is a part of a larger effort to build a centralized digital marketplace for the insurance industry, which will allow insurers to offer more accessible services and make it easier for customers to navigate their insurance options. This aligns with the government's vision of ‘Insurance for All’ by 2047. The marketplace will facilitate a wide range of insurance services, making the sector more transparent and efficient.

In addition, the move emphasizes ICICI Lombard’s leadership in the insurance industry and its role in driving forward innovation and digital transformation in the insurance sector. By supporting such initiatives, ICICI Lombard not only strengthens its market position but also contributes to the wider goal of improving customer experience and access to insurance products across India.

About ICICI Lombard General Insurance

ICICI Lombard is one of the largest general insurance companies in India, providing a wide range of insurance products such as health, motor, travel, home, and commercial insurance. The company has earned a reputation for its customer-centric approach and comprehensive coverage options, backed by a robust claims settlement process and a network of partnerships across the country.

ICICI Lombard’s strong industry presence and strategic investments like the one in Bima Sugam reflect its continued commitment to ensuring the growth and innovation of the insurance industry in India.

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