Chapter 08 Framework of HDFC ERGO
Insurance Quotient Boosters
- HDFC ERGO General Insurance Company Limited is a joint venture between HDFC Ltd. and ERGO International AG, the primary entity of Munich Re Group.
- It is headquartered in Mumbai, India.
- The SEED values guide the company.
- Mr. Deepak S. Parekh is the Chairman.
- HDFC ERGO offers a complete range of General Insurance products like Motor, Health, Travel, Home & Personal Accident in the retail space and customized products like Property, Marine & Liability Insurance in the corporate space.
Headquartered in Mumbai, India, HDFC ERGO General Insurance Company Limited is a joint venture between HDFC Ltd. and ERGO International AG, the primary entity of Munich Re Group.
HDFC Ltd. holds a 51% stake in the insurance venture, while the balance 49% lies in the hands of ERGO. Founded in the year 2002, HDFC ERGO General Insurance Company operates in 106 Indian cities with over 120 branches and 3000+ employees across the country.
Vision
This vision acts as our guiding light and helps all of us be proud of the organization that we belong to. This happens by earning the respect of both, the customers and the industry.
Values
One single thing that takes us closer to our vision is our set of values - (SEED) - Sensitivity, Excellence, Ethics, Dynamism
Board of Directors
Mr. Deepak S. Parekh is the Chairman of the Company and its holding company - Housing Development Finance Corporation Limited (HDFC), India’s premier Housing Finance Company.
- He is a fellow of The Institute of Chartered Accountants (England & Wales). He joined HDFC in a senior management position in 1978.
- He was inducted as a Whole-time Director of HDFC in 1985 and was appointed as its Managing Director (designated as 'Chairman').
- He retired as the Managing Director of HDFC with effect from the close of business hours on December 31, 2009.
The list of Board of Directors is as under:
| Sr. No. | Directors | Category |
|---|---|---|
| 1 | Mr. Deepak S. Parekh | Chairman |
| 2 | Mr. Keki M. Mistry | Non-Executive Director |
| 3 | Ms. Renu Sud Karnad | Non-Executive Director |
| 4 | Mr. Alexander Ankel (Since November 1, 2016) | Non-Executive Director |
| 5 | Mr. Theodoros Kokkalas | Non-Executive Director |
| 6 | Mr. Bernhard Steinruecke | Independent Director |
| 7 | Mr. Mehernosh B. Kapadia | Independent Director |
| 8 | Mr. Arvind Mahajan | Independent Director |
| 9 | Mr. Ameet P. Hariani (From July 16,2018) | Independent Director |
| 10 | Mr. Anuj Tyagi (From May 1, 2016) | Executive Director |
| 11 | Mr. Samir H Shah | Executive Director |
| 12 | Mr. Ritesh Kumar | Managing Director and CEO |
Key Persons
List of Key Persons of HDFC ERGO General Insurance Company Limited as per Guidelines for Corporate Governance for insurers in India issued by IRDAI are as follows:
| Name of Key Person | Designation |
|---|---|
| Mr. Ritesh Kumar | Managing Director and CEO |
| Mr. Anuj Tyagi | Executive Director and Chief Distribution Officer |
| Mr. Samir H. Shah | Executive Director and CFO |
| Mr. Mehmood Mansoori | Member of Executive Management & Group Head - Operations, IT, Online Business & Marketing |
| Mr. Anurag Rastogi | Member of Executive Management, Chief Actuary & Head - Retail Underwriting & Claims |
| Mr. Ankur Bahorey | Member of Executive Management & Group Head - Retail Business Group |
| Mr. Parthanil Ghosh | Member of Executive Management & Group Head - Retail Business Group |
| Mr. Hiten B. Kothari | Appointed Actuary |
| Mr. Abhiranjan Gupta | Chief Investment Officer |
| Mr. Sanjay Mishra | Chief Risk Officer |
| Mr. Dayananda V. Shetty | Executive Vice President - Legal & Compliance and Company Secretary |
Current Financial Status
The economy continued its growth momentum of the second half of FY18 in FY19, with the GDP growing by 6.8% in FY19, in line with the 7.2% growth for FY18.
The growth in Motor and Health insurance industry segments continued in FY19, driving the 13% growth of the non-life insurance industry. The industry is now an Rs. 170,000 crs in premiums terms. The year also witnessed milestone events in the journey of motor and health insurance in India - the introduction of mandatory long-term motor third party insurance for new cars and two wheelers and the launch of the Ayushman Bharat scheme respectively - both of which are expected to further improve insurance penetration. Long term motor insurance significantly addresses the uninsured vehicle problem over the next four years.
HDFC ERGO General Insurance Company Limited registered a 17.8% GWP growth in FY19, with a GWP of Rs. 8,722 cr compared to 17.7 % GWP growth with a GWP of Rs. 7,401 cr in FY18. This growth was robust due to crop portfolio.
Excluding the crop portfolio, growth was 27% compared to 22% in FY 18 making it one of the fastest growing private insurers on a non-crop basis. This helped to consolidate the 3rd position amongst private insurers by improving market share to 5.1% compared to 4.9% in FY 18.
It was also observed that the combined ratio improved from 99.4% in FY18 to 98.9% in FY 19 and the company continued to be among the few insurers in the industry with a two-digit CoR.
Product and Services
HDFC ERGO General Insurance Co. Ltd. offers a complete range of General Insurance products ranging from Motor, Health, Travel, Home & Personal Accident in the retail space and customized products like Property, Marine & Liability Insurance in the corporate space. The firm offers insurance policies and policy renewals through its website, offices and intermediaries. Its market insurance products include Health Insurance, Motor Insurance, Travel Insurance, Personal Accident Insurance, Home Insurance, Commercial Insurance and Rural Insurance. HDFC ERGO is expanding its network across the country and is today present in 120+ branches spread across 106 cities with an employee base of over 3000+ professionals. The company also has a wide distribution network comprising of brokers, retail and corporate agents, bancassurance besides its own direct sales force.
HDFC ERGO has been assigned ‘iAAA’ rating by ICRA indicating its highest claim paying ability. The company has been certified with ISO certification for our claim services, policy issuance, customer servicing and standardization and uniformity of Information Security processes being followed across all branches and locations.
