ICICI Lombard General Insurance Company Limited (ICICIGI) Earnings Call Transcript & Summary

Good afternoon, and a very warm welcome to each of you at this very special gathering, which is organized by ICICI Lombard General Insurance. I am Sanchalli Aurora, and I will be your host for this event. Now technology has truly become a part of a consumer's life today. Companies across the world are accelerating their technology adoption journey to align themselves with these stringing trends. At ICICI Lombard, technology focus has been part of the company's DNA right since its inception. Today's session aims to take you through some of these exciting technology solutions at ICICI Lombard and how they benefit consumers, and of course, other stakeholders. Now to elaborate on how the company has traveled its technology-focused journey to date and its vision for the future, we have the senior leadership team from ICICI Lombard with us. Let me introduce you to them. From the ICICI Lombard management, we have Mr. Bhargav Dasgupta, Managing Director and CEO; Mr. Sanjeev Mantri, Executive Director, Retail; Mr. Alok Agarwal, Executive Director of Corporate; Mr. Girish Nayak, Chief Service Operations and Technology; Mr. Gopal Balachandran, Chief Financial Officer and Chief Risk Officer; Mr. Amitabh Jain, Head Health Underwriting and Claims; Mr. Gaurav Arora, Head Corporate Underwriting and Claims; Mr. Anckur Kanwar, Head Reinsurance, Credit Insurance and Investor Relations; Mr. Vivek Narayanan, Chief Business Officer, Digital; Mr. Arif Syed, Vice President, Technology; Mr. Chirag Bhojani, Vice President, Business Intelligence and [Indiscernible]. Now as we move through the proceedings, I'll show that you will have many interesting questions to ask. I will urge you to keep them for the end. Once we are through with the presentation, we will open the floor for you to get your queries answered. Now to set the context and crystallize its vision for ICICI Lombard technology-enabled journey, may I please invite Mr. Bhargav Dasgupta, Managing Director and CEO, ICICI Lombard to address the gathering. Mr. Bhargav Dasgupta, sir.

Thank you, Sanchalli, and you did a great job of the introduction. So again, from my side, welcome all of you. Welcome to the second such event that we're having, second Digital Day for ICICI Lombard. We've always talked about the importance of digitization, automation technology for us as a company. And every quarter, when we talk together or even otherwise, when we meet, we speak a lot about some of the implications and some of the progresses that we make in the areas that we disclose and talk about. Now at various times, some of you have reached out and you've been interested in interacting with the team that kind of drives this initiative. As I said, for an organization to become truly digital, it's an organizational initiative, but there are individuals who play a very important role in this journey. And there are a lot of work that we are doing, which is probably, at this point in time, not reached a level of maturity where we can talk about that on a normal analyst call or a quarterly performance overview. So the whole idea today of gathering is to share with you the entire journey, entire approach. Some of the newer initiatives, give an update on the initiatives that we talked about last year. And give you a perspective of what we are trying to do at ICICI Lombard. We've always said that in our opinion, digitization or digital is a pan organization initiative. It is not just for customers, but it is about every aspect of the organization. Be it in internal processes, be it for our internal teams, stakeholders, employees, be it for customers, be it for channel partners. So we look at as an organization how do we digitize everything that we do for speed, convenience, productivity and customer access. So that's the whole approach that we've taken, and that's what we will present today. Before we jump into the detailed presentation, which Girish will start with, post which Vivek will talk about some of the customer initiatives that we've taken -- customer focus initiatives that we've taken. Arif will talk about some of the channel focused initiatives that we've taken. And Chirag will talk about the internal process initiatives that we've taken. Before we start, and I hand over to Girish, let's have a small AV for all of you. The AV, please. [Presentation]

Thank you very much. Well, I hope you all have got a hang of what is in store. And with that, I hand over this virtual stage to Mr. Girish Nayak, Chief Service Operations and Technology.

Thank you, Sanchalli. Good afternoon, everyone. Can I have the presentation, please, the first slide. Well, the last 2 years have seen significant changes in our world. And after the world battled through the first stage of pandemic, the initial lockdowns, going digital became imperative for almost every industry, every organization. Even the industry such as ours, which is intensely physical, be it in the distribution set up where we have agents, brokers, the bank channel or even the service where the services through garages, hospitals using surveyors and TPAs, this required a kind of mindset change. And last year, we saw and we showed you how this mindset change has helped in adoption of a lot of solutions that we had put out there for our customers and channel partners. We also talked about solutions, which we are developing to help our stakeholders go digital first. And we see over the last few months, the pandemic has been slowing down. The world is gradually returning to normal. We see organizations going back to work in a hybrid-working model. We see employees returning to offices. Also probably customers resorting to the older methods of interacting with their service providers. So what every organization needs to kind of watch for is to maintain the level of digital adoption that was displayed during the pandemic. For us, in the last 12 months, we've seen the pace of adoption, whether it be it customers or with our partners has been increasing. From our side also, we have been improving our solutions, adding features, adding functionality, all this based on feedback from our customers and our channel partners. In cases where we had customers interacting through, say, an e-mail or chat, we've kind of enabled voice technology for fulfilling customer requests. We see the change in our partner side as well where we have now agents who are willing to interact with us completely digitally. They're starting with onboarding, training certification and issuing [indiscernible]. They would do it completely digitally without ever interacting with a physical employee. On the employee side as well, as employees adopt to the hybrid-working models, they're also are using services that the organization provides through the employee app that is provided to them. Along with all this last year, we've commenced a very exciting journey, which aims at completely transforming our digital landscape. We'll talk to you a bit more about that shortly. And we'll also be talking to you about the new solutions that we have put in place where we are enabling all our stakeholders to be digitally connected as well as self-sufficient. Can I have next slide, please. So when we look at the newer technologies and one of the foremost of this is the artificial-intelligent machine learning, which is kind of underpinning most of the innovative solutions that we see out there. A lot of it is based on availability of data. And here, we kind of have a distinct advantage since we have been pushing on digital and digitization for a very long time. I mean if you recall, we were the first insurer to actually sell policies online way back in 2007. In 2010, we were the first insurer to completely in-house and digitize our health PPA. So that's given a significant first move advantage to us. And speaking of first, we have now become the first large insurer in the country to have our IT infrastructure completely on the cloud. And when I say completely, I mean, even the core policy issuing systems are on cloud. We're the first insurer to do that. And this whole project involved a large -- very large and complex project. It involved moving around 90 applications and over 1,000 terabytes of data from our on-prem data center onto the cloud. Happy to say that we completed this excise just about a month back. What this gives us is, it gives us a improved agility. It helps us accounted changes faster. It makes our whole IT setup much more reliable. Also progressively, we plan to modernize our existing IT infrastructure and in a way, retire what we call our technical debt. But on this movement to the cloud also requires us to change -- make significant changes in our IT operating model. A lot of in-housing of functions like delivery, engineering, operations, is required. We spoke a bit about it the last time we had met, we continue on that journey. These functions which you -- which earlier used to be through IT services companies, we started to develop in-house capabilities on this. Also requires to reskill and upskill our existing workforce in new technologies, new ways of working like agile, DevOps, data and engineering. So -- and this is not only the IT team, I'm talking about, talks about entire -- it's a more organization by change where even the business teams have to learn to work with the IT teams in a more agile manner, working with smaller delivery sets and shorter sprints. So this is where the entire operating model undergoes a change. And with that, we're also focused on making our data that we have, which I spoke about earlier, richer, in terms of enriching this data from external data sources. This enables us to apply and understand this data better. It gives us a better understanding of customer behavior. It gives us a better understanding of risk, helps us to do risk management better. So all this, the cloud, the data, the change in the operating, all this come together to deliver solutions to our customers. And just to give you an example, we've spoken about our AI break-in model, which allows you to do a break in inspection by just taking photographs of your vehicle. Now just to look at it, we had a large amount of data, which was sitting with us because we have been doing a tab-based service for a long time. That data was available, that's used by our underwriting and claims teams for doing the assessments. Now they work with the IT and data science teams to build an AI/ML model, which allows you to figure out whether the vehicle has a damage. All these models are available on the cloud, easy access to use these models, experiment with it, and deployed for production. And based on that, we've been able to kind of deliver this solution to our customers where they can kind of do a break-in inspection within minutes instead of earlier waiting for some physical survey to come down and inspect the vehicle and then issue the policy. That used to take anywhere between 24 to 72 hours. And as we go along this presentation, my colleagues will talk more about such solutions that we have developed using this as a basis. Next slide, please. I'll now hand over to my colleague, Vivek to talk about the solutions that we have deployed across our customer ecosystem.

Thank you, Girish. We all know that customers today are increasingly getting younger and are mobile and well connected. They are all multimedia-oriented, extremely social, digitally. They prefer digital over physical interactions. They prefer doing stuff themselves rather than talking to people on a call center or a phone conversation of meeting people. Ratings and reviews carry significant influence over their buying decisions. They prefer to read what other people have bought and take -- make their own minds with respect to what purchases that they want. And they prefer instant gratification and seek highly personalized products. The comparison of experience also is not restricted only to the insurance industry when they look at us and how they perceive us. They compare us -- the comparisons are made across digital companies. To stay in tune with this ever-changing needs of our customer, we continue to focus our energy on simplifying the journey of the customer across their life cycle, from purchase to engagement to claims and to renewals. We also like to think of -- we also like to consumers to think of us as not just a payer of claims, but also in the form of a continuing care provider and prevention of claims perspective. Our value-added services for our retail and corporate customers are now an essential part of our overall risk management strategy. I'll be covering some of this in the next slide in more detail. Can we have the next slide, please. A large number of our digital solutions today are built to help customers, choose the right products and buy them. Focus on our digital solutions is not only to design solutions that make it simple for customers to purchase or renew their policy, but also to help them manage all of their insurance requirements through the life of the policy. Our modernized website that we had launched some time back, would name fresh look, allows our customers to learn about products, understand more details, get the personalized recommendation, buy insurance and also manage their endorsements and claims. On the servicing front, we have increased our DIY options, including automated claim intimation and voice chat bot services -- voice chat bot-related services that leverages NLP as well as other automated technologies. Our claims solutions such as health claims today through the use of AI continues to provide quick cashless authorizations. We have reached now 66% of our group health claims are now created to by AI solution as opposed to 63% at the end of FY '21. We continue to move our journey from being a provider of claims to being a provider of care and managing risk. Our IL Take Care app is a testament to the strategy, and I'll cover it in a later part of the presentation with respect to what are some of the efforts we are taking in this direction. Similarly, our risk management solutions, especially on the commercial lines of business, are extensively appreciated by our customers and have become a valuable tool of conversation within the insurance industry. Next slide, please. During our last digital day, a year ago, we talked about our industry first bought MyRA. MyRA helps our SME and corporate customers to buy products from us through our wide network of agents and brokers. We're proud to let you know that this bot continues to help issue 91% of our policies digitally. We also talked about the launch of our SME digital website, which is another industry first, where customers can buy commercial products directly on the website, learn more about them and also complete the purchase directly on the website. We have continued to launch a lot of products on this online website, and now attract about 25,000 customers on a monthly basis. Today, we will focus on use cases where we have simplified customer journeys, leverage the power of data, as Girish had highlighted earlier. Technologies on the voice side to -- for customers, especially focusing on customers that exhibit high lifetime value. We have taken significant strides in ensuring that website customers buy insurance products without requiring any assistance. This not only makes a transaction simpler and easier, but customers tend to prefer making the purchase themselves without having to talk to someone. Our fresh look interface, preforms, helps customers understanding difficult to understand terms by explaining them in simple language and makes the purchase of these products significantly easy. Today, 74% of our website customers are able to buy insurance product without any assistance. However, for complex products like health insurance, we have related a video counselling solutions that helps customers connect with us in the form of a video call where our agents can council them, understand their requirements better and determine the most suitable solution. We have seen our customers love this. And customers who opt for a video counseling session are 3x as likely to buy our products as compared to those who want to talk to us or get advice over telephone conversation. We will continue to invest in this space and see how we can -- and we believe that this will be a turning point with respect to how customers will choose to buy insurance online. Repeat purchases and renewals are also a integral part of the purchase process. And we have made significant strides in understanding of the customer behavior and [Indiscernible]. It has given us insights into how to build that behavior as a part of the overall customer selection process, as well as in building sophisticated price elasticity models. These models are helping us increase our revenues, ensuring that the right set of price has shown to the right customer. At the same time, it helps us increase our profitability as well. We've also leveraged the power of multicloud to help customer behavior data to Google Analytics and through an MLL algorithm that is posted on Azure, we're able to predict which customers have to be spoken to, which customers have to be targeted on the marketing side, how much money or how much customer acquisition efforts we can invest depending upon the cohort of the customer. And a lot of this has led to real time lead -- our ability to prioritize needs on a real-time basis as well as take bid decisions on a real-time basis. All these solutions have helped us increase our website revenues to over $6 billion of GWP for the year of 2022. Can we have the next slide, please. To illustrate how we have made the health purchase journey on the website relatively easy and also showcase a little bit of the health video calling that I spoke to you about, I like to play a small AV. Can we have the AV, please? [Presentation]

Thank you. The journey that you saw like that of a purchase of a health insurance policy, a customer most of the times, requires assistance to understand the products and its features. The design that you just saw in addition to the video calling, guides the customer by asking questions specific about their family and their location and their age and is able to algorithmically suggest the most relevant plan thereby eliminating the amount of confusion or the need for customers to understand various different plans significantly. Can we have the next slide, please. As we're looking at the SME businesses, and we spoke about the SME website earlier in the presentation, we realize that there is a whole segment of MSMEs and start-ups who do not have access to the adviser network that we have built over the years. Our SME digital outlook or outreach is a new platform that we launched last year for this segment of customers. We started looking at global peers and how they have built their digital platforms for business insurance, focused a lot of attention in simplifying the amount of information required to sell these policies to customers specific to this cohort. We also looked at our customers' businesses and the products that are most relevant for these target segments. The simplified interface helps customers to buy the -- know more about their policies, but as well as buy the policy directly in most cases without the assistance, and if they require any assistance, we are happy to connect with them and help them understand which is the right product for them. We're seeing about 25,000 new customers every month come to this platform, and we continue to enhance our website and cater to the emerging needs of these customers in this segment. The enhanced consumer behavior and additional data is also giving us an opportunity to create customized solutions for each of these customers. We are the first company to introduce 6 different SME-specific products to be bought on the website and we continue to add more features as we speak. Next slide, please. Last year, we talked about our digital solutions at the time of claims, such as InstaSpect, health cashless approvals and our fraud detection initiatives. Over the last several years, our journey to create digital solutions at the time of servicing continues to reap rich dividends. We are glad to report that our InstaSpect solution has now ensured that over 80% of our surveys are being done through the solution as compared to 61% a year ago. On the health AI front, we are now able to authorize 68% of our group health -- 66% of our group health care [Audio Gap] our efficiency significantly as compared to a year ago when we spoke initially about these initiatives on the fraud side. Can we move to the previous slide, I think we are on -- yes, thank you. You see here in addition to progressing on -- in addition to progressing on our servicing solutions from the previous year, we've also introduced new initiatives such as NLP-based interactive voice solutions that help in claims intimation as well as in narrating the status of the claims. A part of that was shown in the video AV clip that you had seen in the beginning of this presentation. These solutions are also now used for intimation, as well as narrating the status of the claims. We are also using these solutions for our welcome calls to inform customers about their policy terms and conditions and procedures while initiating a play. We have also introduced several features on our NLP-based chatbot, called Ria that service us on our website and other channels like WhatsApp and even Telegram. Currently, we are seeing traffic of over 35,000 transactions per month on these platforms, which is an increase of 60% over just a period of 6 months. To increase the adoption of our digital platforms, we have also created various customer engagement campaigns across different channels like e-mail, chat, our IL Take Care app that help advocate these DIY solutions and through targeted segmented communications. Despite insurance being a low touch point and engagement category, we are seeing significant engagement from customer space these campaigns especially they're personalized and tailored, which is resulting in higher retention from such segments of customers. The digitization across various platforms has helped increase our turnaround times and makes our operations as well more efficient. The overall productivity increase that we were able to see across claims and operations for this year alone has been about 15%. Can we have the next slide, please. On the corporate and risk -- corporate risk side, we've always seen as the partner of choice for our customers due to our customer risk management. We have used multiple digital solutions to manage the risks and minimize losses to our customers. ICICI Lombard continues to provide a comprehensive list of risk management solutions on the commercial and SME side of the business. Our most popular value-added service is the property loss prevention exercise with corporate. This helps corporates understand their specific risks and a benchmarking that we enable for them based on our extensive database is done for them to see how they compare with industries and other peers in their own segments. For our MSME customers, fire mitigation solutions and electrical risk solutions are most preferred. Our hydrant monitoring system basis -- we leverage IoT devices helps in monitoring the pressure in the hydrant line, operational status of the electric pump, the level of water that is being maintained, which are crucial parameters when it comes to firefighting during an emergency. We have various risk management solutions for our marine cargo customers as well that help in loss minimization and helping us prevent damage to the cargo that is being insured. We're seeing that customers find tremendous value in our risk management solutions and find higher retention of customers especially the ones that have used some of these services. We'll continue to invest in this and take this further in the years to come. Have the next slide, please. The IL Take Care app is a customer-focused insurance and wellness solution app. Our latest innovative feature that I want to speak a little bit about is face scan. Face scan allows users to check their vitals like heart rate, blood pressure, oxygen saturation, all of this in just a couple of minutes with no additional tools or devices required. The feature is powered by state-of-the-art artificial intelligence and is able to come up with fairly accurate values for a variety of readings. Another feature that we had launched, again, to help our customers monitor their state of wellness was called Cal Scan. This feature helps users check the calorific intake of different foods that they would like to consume. And by just scanning the food item, they can understand not only how much calories the food item has, but also how much exercise they might have to do or how much burning they would have to do in order to compensate for the food that they're looking to have. The IL Take Care app also focuses on complete wellness solutions, including physical, but not not just physical, but also mental as well as nutritional. The diet and exercise tracker allows us to keep the -- allows the customer to keep a track of daily food intake and exercise done per day. And at the same time, journal the same for later understanding trends, which they can use to either fine-tune their regimen or become more disciplined. There are multiple blogs and export videos available on the Get Wealthy section of the app. And this focuses including blogs and articles on wellbeing, which has become particularly of importance during the pandemic. Last year, if you remember, we had introduced services and spoke about the dedicated home care solutions that our customers can avail through the app, our cashless OPD services as well as pharmacy and diagnostic services. We continue to increase our performance -- our offering here, but also introduce some of these new features, which we think will help us increase the engagement on the -- with regards to wellness for our customers. On the motor side, for our motor customers, the app is providing solutions like AI-powered video inspection that Girish talked about and how we leverage our data to ensure we have a better efficiency and accuracy in terms of our AI-detection algorithms. It helps customers save a lot of time. And during vehicle inspection, what can be -- what earlier used to be done in days can now be done in minutes. We also provide for auto enthusiasts, a comprehensive news in News section that helps customers get to know about the latest events and news regarding vehicles and also ask questions whether it's respect to new models or about maintenance or other car-related or automobile-related [Indiscernible]. All of this is built on our AWS platform and is native to the cloud, which helps us provide overall customers' experience from a native cloud operations. Next slide, please. The app is a holistic solution that provides customers necessary tools to maintain their health as well as the health of their automobile. It also access a single stop for customers health, wellness and other needs, like I just spoke about. But it started off as an engagement platform. We have always envisioned it as a one-stop shop for all of the customers' needs, including purchase. In line with that philosophy, we have started leveraging the app now for cross-sell, upsell and renewal in recent months. We'll leverage the sophisticated ML algorithms that use the customer behavior on the app and the customer profile that is fed into the system base depending upon which -- where the customer purchased and how far back the customer purchased. And past purchase behavior to find and identify customers with the right set of products that we can be pitched for them to be cross sold off. The results are here on the screen for you to see. We've just launched it, but we are seeing engagement grow on a monthly basis, and we'll continue to invest in this as our strategy on the IL Take Care app. I'll now hand over to my colleague Arif, who will take you through the digital initiatives implemented across the partner ecosystem and over to Arif.

Thanks, Vivek. Next slide, please. In an industry like insurance, partners from the key ingredients in terms of both insurance distribution, as well as in claims and servicing. For traditional partners such as OEMs and agency, we continue to build solutions that can be easily integrated with our core systems. Last year, we had [Indiscernible] Nysa, our new intermediary webportal that use prefill information to make quote and policy issuance seamless for our channel partners. Our advisers cannot punch policies in half the time as before, leaving more time for discussing insurance solutions with customers. We've also talked about our group health endorsement solution. That group health endorsements that typically 10, 12 days, were now being done within a day. Today, we'll learn you through some of the changes that we have done in Nysa, as well as how we are integrating with our new age fintech partner ecosystem. Next slide, please. If you think about our partner ecosystem, it can largely be broken into 3 broad blocks. The OEM agency channel for distribution, the banker relationship and our digital channel that works on D2C initiatives and work with digital partnership. On the OEM and agency side, we continue to focus on seamless integration with OEMs, both from sourcing as well as servicing perspective. Our Ninja CRM continues to help us in engagement with our customers. We also leverage a robo calling feature of the Ninja CRM to help in retention of our customers. This future is especially useful with our 2-wheeler OEM, as it helps us in increasing our probability of retention at low cost. I will talk about our cloud native platform, Nysa in the subsequent slide. On the banking partner and NBFC space, we are associated the largest bank partners and NBFCs. We follow an integrated approach to insurance, selling across the consumer life cycle and across various touch points, be it web, telephony or the app. Additionally, we work very closely develop partners on digital front, including Amazon, Flipkart, Chroma, Ola Electric, Plum and the Newbie. We also work with several start-ups as part of our continuous [Indiscernible] program, Nova. We'll talk more about the same in the next few slides. Next slide, please. IPartner is a platform that has been created for our agents, OEMs and our corporate agents. Nysa has been built exclusively for our own motor agency channel, and we'll give them unique opportunities. Prefilling 70% of all data fields by third-party data enrichment has helped us condense time for agents to quote and issue policies. We have partnered with payment specialists to help create a wallet for our advisers. Nysa today can communicate in 6 language instead of just English. This will allow us recruit agents who can do their business in vernacular languages, Hindi, Tamil, Telgu, Gujrati and so on. Nysa also provides the capability to do endorsement. This allows our adviser to service their customers without the need to go through call center. We are now building other servicing features such as claims, but beyond all other metrics, the one big advantage is that our adviser can now punch in a policy half the time before. We expect this to lead to them spending more time in engaging with their customers. Some of our larger advisers have teams at the back office issuing policies. We expect to provide these set higher efficiency through Nysa. Today, 95% of our motor [Indiscernible] business is now done through a digital platform. Next slide, please. With each of our banking partners and NBFC, we work on a complete integration where the partner works on the front end for customer acquisition and servicing, and we are aligned on the back end with the systems and processes. We also work on end-to-end digital integration with their website, CRM tele processes, as well as their mobile banking apps. The idea is to embed insurance into the native digital journey for the bank customer, thereby providing seamless hassle free purchase experience for them. So the data mining algorithms based on data over so many years are helping in identifying customer needs and behavior, and helping to create customized products and solutions for our customers and their insurance needs. Let's take a few examples. A young customer, age 26, that has an existing account with one of the largest bank, now converts it into a joint account. The moment a request for a joint account comes, the customer is able to see on the app and option to purchase a family floater health insurance policy because with data in back end, we understand the customer has a joint account now. Other customer, let's say, for an example, if he purchase a travel ticket using the credit card from a large bank and has provided consent to be contacted for promotional campaigns, the customer is sent a message with the best travel option for the country and an option to buy travel insurance. Similarly, the third example. Other customer takes a personal loan from an NBFC for paying school fees. The customer is pitch for a loss of job over. There are multiple such examples where data mining and consumer behavior is helping us in pitching the right product to the right customer, using the right channel of distribution, be it mobile banking app, website, branch or the telechannel. Through these platforms and integration, we have issued 12 million certificates of insurance through various platforms. Next slide, please. Digital partnerships. So we are tending to see a significant number of start-ups emerging in the fintech space, especially on the lending side. As the number of such players continues to grow, we sense an opportunity to be their partner from an insurance perspective. Each of these new age companies are digitally well equipped and are most likely built in the cloud. Our [indiscernible] because since we are already in cloud, has helped us seamlessly integrating with each of these companies. We have more than tripled the number of companies that we are working with in the last 2 years, as more and more organizational origination of lending and payment is moving to the newest fintech companies, our share of revenues coming from these new age companies, relative to the traditional banks and NBFC partners have quadrupled. We continue to look for such opportunities to help us grow and fulfill the insurance need of customers across the platform of their choice. Next slide, please. Insuretech partnership driven innovation. So what we have been doing is running a continuous accelerator program called Nova. Over the last 4 years, that helps in-sourcing fintech, insuretech and at joining industries, tech startup for innovative solutions across the insurance life cycle. This continuous accelerator program, sources and partners with various programs, including not limited to, IIT Mumbai Sign, the center for entrepreneurship and innovation at IIM Ahmedabad [Indiscernible] startup program, NMIMS Atal Innovation Mission, the NASCOM Product Conclave, the start-up program at IIT Chennai, Keyhub in Hyderabad, The Israel and Canadian Consulate among others. Over the years, we have evaluated 600-plus start-ups, of which 100 plus having evaluated in the last 1 year. Of the 100-plus evaluated, we have done pilots with 15 and onboarded 5 start-ups. Excluding our distribution startup onboarded, which we spoke in the previous slide this year. Now I will hand over to Chirag, who will talk about the employee-related digital initiatives. Chirag?

Can we go to the next slide, please? Employees are the backbone of any company. And as Stephen Covey once said, always treat your employees exactly as you want them to treat your own best customers. Using that as a cue maybe have enhanced and augmented our digital capabilities across the consumer and the partner ecosystem, similarly digital solutions for our employees. Let us now look at some of these solutions that we have been able to design and implement for each of our employees. Next slide, please. As we move to a long-term hybrid working environment, it was essential for us to ensure that employees are equipped with necessary digital solutions for them to carry out their day-to-day work. This included tools that would help them in monitoring of our partners' productivity as well as simple things such as electronic approvals as well as signatures. Similarly, as Girish talked about at the beginning that up-skilling is very critical for a new-age technology function. As an organization, we pride ourselves in helping employees in skilling as well as re-skilling. This has gotten even better now that we've deployed our AI-driven digital learning platform. Enhancing our learning platform and conducting on-the-job training programs has helped us tremendously as an organization, and that has resulted in us winning the ATD or the Association for Talent Development award 9 times in a row. Next slide, please. As we continue to be enabled digitally as an organization, employees are equipped with multiple tools that help in engagement with their audience such as agents, OEMs as well as our banker partners. Our cloud-based sales CRM engagement platform is helping both our wholesale as well as our retail teams in capturing rich data from sales activities automatically using a combination of the phone data as well as geolocation data. This helps sales process to focus more on the conversation with these partners rather than actually inputting data into the CRM. The platform also helps us to learn from top performers since the platform highlights the best behaviors that each of these top performers exhibit on a regular basis. The ML revenue tool also helps in predicting next best action for the sales managers. That helps them in closing even more deals as they continue getting more and more business. Similarly, our employee app access a one-stop shop for all the employee services. During the lockdown as well as later when we move to hybrid working, people would book seats and workstations to come to office. We could also book bus rides to the nearest railway stations in Mumbai as well as hitch a carpooling ride or even pay for the favorite food in the cafeteria by using an UPI-enabled digital interface. Next slide, please. You've heard today from my colleagues how AI and ML solutions are utilized across the ecosystem, be it in claims processing or in expanding distribution capabilities, in cross-sell and upsell opportunities as well as in voicebots and chatbots. The human resource function is absolutely no exception and presents us with unique opportunities that can help us in areas such as solving employee queries to defining customized learning programs or even identifying proactively which employees are going to leave the organization. And each one is a prime example of how conversational AI is helping service our employees in understanding various kinds of policies and processes and also querying for things such as leave balances, salary components like taxes, provident fund as well as help in the application of leave and help managers to approve leave on this particular bot. The bot has been developed by a combination or collaboration of the HR team, the IT team as well as the data science team. The continuous learning of this bot has helped in increasing the overall accuracy of the bot and has improved the productivity of our colleagues in the HR function. Our AI-based digital learning platform, [ iLearn ], is a platform that boast of features such as customized learning programs. This is the role and the function to which the employee blocks. At the same time, it tracks your behavior and interest over time and helps to create a book of learning programs based on your browsing history, similar to something on Amazon when you browse products as well as people who buy similar products, you have recommendations that come on the screen. We have actually seen tremendous success on this -- with this platform, and the numbers are there on the screen for you to see. Finally, attrition as a whole that all organizations would like to plug, especially when you have really good quality people leaving. The HR team, together with the data science team, has been working on a model to help recognize behavioral traits that help identify employees most at risk of leaving the organization. This is this probably the model. Managers are aiding to have conversations with their employees to be able to understand areas of concerns that employees might have. This model and conversations with the respective employees has help in retaining 10% of our employees in a pilot that's run with a bunch of teams over the last 12 months. Next slide, please. So today, my colleagues and I have highlighted to you a few of the digital solutions across each of the stakeholders, be it customers, partners or employees, and how new age technology is helping in creation of such solutions. The impact of each of these solutions is not only resulting in improved productivity across the organization, but it's also allowing us to service customers faster and better. Next slide, please. As you are all aware, 97% of our policies are issued electronically. And 95% of our policies are automatically underwritten. That is they do not need to be looked by a human underwriter. Vivek initially talked about how our digital business is growing through the website and accounts for 6 billion plus of GWP today. Finally, all the service solutions that bot talked today, be in the voicebot or the chatbot or the IML-driven claim solutions and InstaSpect has resulted in more than 15% productivity gains across the claims and operations teams in this year alone. These solutions have helped us also process claims faster and in a much more efficient manner. 80% of all our motor claims are now inspected through the InstaSpect solution. 42% of the motor claims are processed end-to-end digitally through a combination of the InstaSpect feature as well as digital and e-claim forms, which means that they do not need to put any kind of paper on these cases. Similarly, Vivek talked about our ILTakeCare app. the ILTakeCare app is seeing significant adoption. And on the health side, we're seeing 37% of our health reimbursement claims being intimated directly on the app, and the relevant documents that need to be uploaded are uploaded to this feature as well. Another number, which I'm sure we have been reporting, is that of our group has helped cashless claims, 66% gets approved through an AI ML solution during a 90-second time frame. The improved convenience that is reflected in these positive numbers is also endorsed by our customers. If you look at our Net Promoter Scores, for motor purchase, our Net Promoter Score has improved from 50 in H1 2021 to 60 in the first half of 2022. Net purchase also recorded a jump of 11 points during the same time period from 26 points to 37 points. For motor cashless, this number improved from 52 to 54 during the same time period. And for health cashless claims, we're seeing this number improving from 58 to 67. We continue to remain invested in our digital journey and, through it, continuously improve the experience of all our stakeholders, that's customers, partners as well as our employees. With that, I will now request Bhargav to share his thoughts and for his concluding remarks before we open it for the Q&A.

Thank you, Chirag. Nothing more to add. This is basically just a glimpse of some of the things that we're doing. A lot of these initiatives are very recent. We are beginning to see impact. But if you heard us speak about our approach over the last 4, 5 years, this is a continuous journey, a journey of achieving true digitization as an organization. So some of the initiatives have resulted in a significant impact. In the U.S.A., 97% of policies being issued electronically based on investments in some of these technologies that we made in the past. And what we are doing today, while the numbers today may be small, but we believe these will have a significant improvement and benefits for us and our customers and our channel partners in the years ahead. So with that, I'll just open it up for Q&A that -- if you have any questions that you may have. And my colleagues here will be happy to answer them. Thank you.

Thank you. Thank you very much, Bhargav, sir, for taking us and all our senior management for taking us through the entire presentation. Ladies and gentlemen, we now open the floor for question and answers.

[Operator Instructions] So we have the questions right here. I will be taking them, the ones which are given to me. The first question, which I have is from [ Dipen Shah ], Kotak Securities. They say while ICICI Lombard focuses on different ecosystems for different products, it is easier for customer to purchase from aggregators who have similar ecosystems, but maybe under one umbrella. Basically trying to understand is whether the customer stickiness of future cross-sell higher in aggregator that is physical or digital versus stand-alone manufacturers. Leave it to the management to answer the same.

Sanjeev, you want to go? Go ahead.

No, no, Bhargav. You can go ahead, go ahead. No problem.

Go ahead. Go ahead. I'll chip in.

Clearly, yes, aggregators are someone who are able to display a number of companies. And the economics play a significant role, but that's not the plan that is required, the customer segment that we are looking for, so the ability to differentiate. In fact, some of the things that we have done was when someone comes to us, someone wants to buy a travel policy, which would be the basic plan, so the gold plan and the platinum plan, the differentiation in terms of features are available. In fact, people visit the segment, come and buy the business brand that they want to purchase. So there is enough play available for us as a company to work on this. We've been not aggressively working with the aggregator and still we have seen that our website business has continued to grow over the last so many years. So there is a play available for all of us over the last many years.

Yes. I think the -- just to add to what Sanjeev said, if you look at the overall base of customers, our view is that -- and based on our research with customers in terms that we have done to our customers, we believe there is a very large market where customers want very different sorts of interaction. And we find that the customer decision journey is not linear. It is not that -- a lot of customers are research-online, purchase-online type. They may do a lot of channel migration across different channels, across different, even, potentially, organizations. So our belief is that you have to be aware where the customer is most comfortable buying the product. And it will be different across different product segments. And lastly, in terms of creating long-term value for an organization, we believe customer ownership is key. And if you're not going direct to your customers through your own tied agents or through your own website, let's say, for digital customers, we don't believe that you'll be able to create sustainable value for the organization. So yes, there'll be competition. There'll be others who will do things differently, but that doesn't mean that we want to replicate someone else. We want to remain focused on doing what we believe is right for us.

Thank you very much for answering that question. And then we have another question, which is here -- which is there from the comments bot. [Operator Instructions] Moving ahead with -- okay. We have somebody who is the next person, who is asking a question is [ Gaudenia ], I hope I'm saying your name correct, from JPMorgan. The question is how can you tell us an example of how you have leveraged AI, ML tools in profiling customers, et cetera? Also if you quantify it by some metric. Also, what are the annual investments in IT Tech enablement and what is the annual outflow that you can expect to incur towards the initiative?

So maybe the first one, I'll ask Chirag to talk about. Chirag and Vivek, one of you can take that on the IT investments, so Gopal can respond.

I'll take that, Chirag. On the one example that -- of how we leverage AI, one of the most expensive propositions when acquiring customers is the acquisition cost. And one of the main challenges when you go out into the Internet and advertise for customers to come on to your website, if you have the ability to predict which customers are more likely to buy from your website and which customers are more likely to engage and interact more from your website, how many -- what kind of customers are more likely to buy after having an interaction with the call center agent, which has cost implications. A lot of this information can be gotten and predicted using AI, ML model. So that is a good example of how we leverage user behavior, both on the website to understand who's more likely to be reached out by considering executive, who's more likely to buy by themselves without any assistance and what is the right price to attract that customer depending upon the potential with having very little information when they are out in the Internet. Some sophisticated examples where, without the use of AI and ML would be very hard and would be akin to shooting in the dark. So that's a little bit of a highlight in terms of how we leverage AI, ML example. And this is one of many examples to which we leverage these technologies to either increase our conversion rates or increase profitability.

I think the other example that I just wanted to add is on the retention side, right, which is how do we -- using a lot of the Big Data which Girish talked about, where we also understand the consumer behavior in terms of when that person pays, how early he pays as well as kind of understand which channel is their preference, whether it's online, whether it's the app, whether it's kind of through an agent, et cetera. So the ability to take that information, mine it and utilize it to understand consumer behavior basis, the choice that the customer makes, makes a very important -- or it's a very important need into kind of the renewal model that we built as well as how we kind of pitch to customers.

Just in terms of -- just to kind of respond to the other point kind of investments that we make in terms of people who are largely associated with various niche skills that we have, whether they are developers, whether they are coders, or for the matter of fact, someone who's involved in the design of various applications. So just to kind of put some numbers on the table, I think as a company, we roughly have close to 150 people who are kind of largely developers or coders who work on multiple areas of initiatives that we looked at. In so far as, again, the niche skills of business analytics and intelligence, I think that again, I think we have almost close to about 30 to 35 of them who is working on multiple aspects. So in all, I would say close to about 175 people as a company is what is -- what we kind of make as investments, which spreads across, as I said, developers, coders, business intelligence specialists and people with niche skills on the analytical capabilities.

Thank you very much. And we will take whoever wants to ask a question on screen next. [Operator Instructions] As we said earlier, we'll be happy to answer any questions, any queries, any doubts you have in mind, any clarifications you need, any comments you want to share with us. We will just wait for our next person to be here on screen or if there is anyone. Yes. So there's a question, which is there. If you could kindly throw some -- this comes from -- okay, let me ask -- just to let you know the name of the person. It is Swarnabha Mukherjee. The question is if you could kindly throw some light on the status of integration on the technology front for Bharti AXA systems and processes. If you quantify the progress, that would be very helpful. He is from B&K Securities.

I will take that. So we are quite recently advanced on the whole integration piece. If you were to just give a kind of quantification, almost 90% to 95% of our GWP is now completely booked on ICICI Lombard systems. We will be in a process of migrating the fast data from the Bharti systems. And in the 6 to 8 months' time, we should be completely done with the entire migration process. So that's going on as per plan. By end of this calendar year, we should be completely on to just the ICICI Lombard platform.

So in terms of quantification of benefit, you'll basically begin to see that in the P&L from the second half of this year and fully next year.

Okay. I hope that answers your question in the time frame, please. That should be easy. Anyone else who has a question here for us? I'm sure there are lots and lots of questions, though I'm sure our management has already cleared out many of the doubts you might be having before this entire presentation began. But still, if you have anything to share with us, please feel free to do that. [Operator Instructions] Okay. I have another question right here with me, and this is from Sujal Kumar from PhillipCapital. The question is, a lot of focus has been on preventive solutions. Do you feel claims to start trending down with these initiatives?

That's a good question. What we've seen is whenever we've been able to implement some of the preventive solutions, which still now has been largely in the commercial lines, I think we talked about that. We've seen significant improvement in frequency drops or even in terms of severity of losses. I mean if you remember in our annual presentation, we give a snapshot of the industry losses even on the cat side and our share of loss, which has always consistently been lower. So it's not just frequency losses where this works even better, but even for catastrophic losses you've seen some benefit. On the retail side, it's a journey because, clearly, the engagement and preventive focus is we've not been seeing so much in the retail side. The entire ILTakeCare approach is to make that happen on the retail side, starting with health, and we will see how it posts. Our view is that this is the best way to both increase engagement and renewals. Because of the engagement, has also reduced our claims costs in the longer term. But to answer your question on specifics, we've seen the benefit on the commercial side, but not as yet in the retail side because we've not implemented those solutions to that extent on the retail side as yet.

Thank you, Bhargav, sir. The next question, which I have here is from Anand Bhavnani from White Oak. Question is, over the last 5 years, can you give us a sense of how the agency productivity, premium per agent has evolved as they use more of the technology? Also kindly elaborate on whether there has been any particular preference by agencies for ICICI Lombard due to better technology.

So in terms of the agent productivity that you're talking about, it's the way we look at productivity. I just want to explain in a minute, so there is no confusion. The aging of agents is put into place. We have agents, which have worked for more than 5 year, more than 4 year and so on and so forth. And you have young agents pool that is coming in. On a cumulative, if you see for us, the increase in agency productivity will be around 8% to 10% only. But if you do the agent productivity in terms of the customers within 5 years, then you'll see an increase in productivity was 30% to 40% on account of technology tools. Obviously, they've been admitted for a long time with ICICI Lombard and its culture. And their adoption to the technology that we have created and developed over the years is far higher. For the newer agents, we have to run through the process of working with them on the productivity as well as making us -- making them run through the system that is required. And we have a nicer product which Arif spoke about. Clearly, what the case in point there, we have changed certain aspects so then the onboarding and also usage of the tech tools becomes very simply -- simpler for the agency. So in time to come, we will see this productivity also leap by 20% to 25%. In fact, initially, when we got started almost 10 years back, very extensively, there used to be a pushback from the conventional agents saying they don't want to adopt the tool and they wanted to stick to the old one. Fortunately, there are no headwinds available. The pandemic has further expedited the adoption of the tech tools that have got created. And we've really benefited significantly on that count. On an average, so if I have to sum up all the maturity-based agency productivity, we would see an increase of around 18% to 20% on a Y-o-Y basis. You might want to...

Nothing more.

Thank you very much. Well, before I go on further, let me just quickly add to the start. We have an option to come live. So we are sending your request to come live. We just have to accept that, and you can just ask your question directly as well. We really appreciate that. I do have your questions with me. I will keep asking, but we'll still prefer that you yourself come and ask those questions. Okay. Let me start with the next question. This one is from Subramanian Iyer, Morgan Stanley. He has 2 questions. As the management highlighted, the risk management initiatives have been well appreciated by its corporate customers. Now how is the response on wellness initiatives from the health customers? Do you have evidence these have helped you win business? The second question is a follow-up question, is do not -- do most of the customers still care about factors like price where ICICI Lombard is expensive by a margin, network, hospitals, tie-ups and so forth?

On the first one, whether customers appreciate wellness, again, the experience is more on the corporate side because the journey that we started on the ILTakeCare app as also this entire engagement approach was more -- again the start point for us was corporate. We wanted to see if it works and then scale it up for retail. This year, in a sense, this was a true test of whether this works because post June of this year, when the claims for COVID went up significantly for us, we went out and increased the GHI rates for our customers. And we had said in our con calls that we will increase by about 15% to 20%. We actually increased by even more for our corporate customers, but the retention was still strong, more than 90%. When we analyze, when we take feedback, when we talk to our clients, we believe a big reason for this is the direct engagement and some of these wellness and engagement initiative that we've done as an organization. So that's a point in a sense that customers effectively value this offering that we have. As I said, for retail, we will have to go through the journey. The entire launch of the OPD product that we've talked about, we launched it last quarter on, we will have to see that getting traction in the retail segment, very early days. And we remain very confident that if we can actually get customers to get used to this approach, we will see the benefit. Your last question on pricing. I mean India is a one Indian customer, right? There are different customers. There are customers who are very, very price-sensitive, but there are customers who are becoming a lot more service -- or discerning when it comes to certain service. I think when events like COVID happens, people realize the value of having an insurance partner who is more service-oriented. And that's a change that we've seen. Will it sustain or not? Time will have to tell. We clearly don't want to be positioned as on the price side. We want to be positioned on the service side. And that's the approach that we've taken. Of course, there'll be certain segments or markets where we may be aggressive for certain strategic reasons. But overall, that's our position.

Thank you. Once again, before I ask the next question, I will be requesting you. We are sending you a request to come live. Kindly accept the same. We'll be happy to see your smiling face on the screen. And with that, I'll take up the next question. This is from Nidhesh Jain, Investec. How do you see adoption of ILTakeCare? What are the targets, and how do you plan to reach them?

We have the guy who runs that piece for us, Amitabh Jain. I'll ask Amitabh to talk about that.

Thanks, Bhargav. Well, we have seen a very good adoption of the app over the last 6 months. We've crossed the 1.3 million mark very recently. And overall, we adopted various features. It's also been pretty healthy, especially if you talk about teleconsultations and the face scan feature that we launched last month. We've seen almost more than 100,000 people try it out in the last 1 month, I mean in terms of the number of users that have been happening. Also teleconsultation, now we're touching close to about 100 teleconsults for the -- where prescriptions are being issued. So clearly, the traction is building up, and we want to really scale it up as much as we can. But this is something that -- I mean there are limitless possibilities in terms of where the app can go. And we are aiming to more than double the downloads in the coming year from what we are today close to 14 max is what we land the total number of downloads as on March end. So that's the plan. More and more features are being worked upon, and you will see a lot of uptake of new products coming on to the app over the next few months. We also expect to have revenue cross-sell, upsell and renewals ending at about INR 2.5 crores in the month of March. So that's something which is the sort of area emerging for us. While we do servicing, we offer wellness, we offer a lot of risk solutions. We also intend to use the platform for ensuring that our customers have the coverage that they need while they are engaging with us. So that's the plan.

Thank you, sir. There is also a second part to this question, which is what was the online premium acquired in financial year '21?

I think we gave the number in the presentation on the website. There is the link.

Thank you. Moving on to the next question. This is by Neeraj Toshniwal, UBS India. On health insurance -- on a health insurance, want to know our approach towards OPD insurance, which is still very nascent in the industry. Are we looking for tech-driven approach here through ILTakeCare app?

The answer is yes. I mean one of the reason why the insurance industry in India -- I mean if you look at health insurance globally, it covers everything, right, doctor consult, to pharmacy, to dentistry, et cetera. In India, it's been kind of very, very -- kind of focused on just the IPD, which is the hospital relation claims for a good reason because in the past, as an industry, we were very wary of abuse on the OPD segment. So without our digital and the cashless process, we don't believe we can launch and open new product that is sustainable in terms of internal losses. So the entire approach for us has been this ILTakeCare-driven OPD product where everything is really digitized and cashless. So if you -- as a customer who has an open, let's say, BeFit writer, you want open -- you feel unwell at any point in time, you can go on teleconsult. The doctor can advise you to go to a specialist, if that's required. If not, can even give you other medical advice. The specialist can give you a prescription, and that will be a physical meeting, if you want, virtual or feasible meeting. The prescription will be digital, uploaded. Based on the prescription, we'll send you the pharmacy through the types that we have, the drugs. If you need a diagnostic test, that is also part of the network. Again, purely cashless, the same prescription will go to the -- your diagnostic center. And everything is, in a sense, kind of walled garden model but with partners so that abuse doesn't happen where -- which we all understand there's a propensity in the outpatient side. So the answer is yes, it's completely digital. And that's why it's a kind of a behavior change that we are trying to drive in the ecosystem. Both in terms of insurance companies selling pure risk-based OPD product, earlier, it was kind of a voucher model. Now it's a pure risk-based OPD product is also completely digital. And I think this -- the experience that with a proper amount of what we saw during the COVID time, we believe that the market gradually will get more and more comfortable with consuming health care services online. And that's the reason why we are kind of betting on this.

Thank you, sir. Next question I have here is from Shreya Shivani from CLSA. Some of the new age digital insurers have highlighted the dynamic pricing model. What are your views on the same, and do you expect the industry to move towards that in the future?

Sanjeev or Vivek, one of you.

Vivek, you want to -- I can start, Vivek, you want to take it? Okay. I'll go ahead. So clearly -- so I know from the U.S. side, there has been some changes, but we are very, very pleased as far as digital aspect is concerned. Obviously, for us, we are present, the omnipresent, the omnichannel. We are there on the website, we are there for OEM partners, whether bank partners. We definitely end up being a balancing act. But our own belief is that pricing is to be based on something which can make the operations run in a viable manner. We are always meeting this across product lines at all points of time. While we can take care of the exceptional challenges that come along with that kind of approach, but we are willing to live with that. Are we participating? Are we actively there part of this particular strategy? The answer is, in a very clear term, yes, of course, we are up to it. We've been always evolving. As in multiple investor meet, we always maintain that. In today's scenario, it is important to remain dynamic and align to where it is. If we see, in some sections, the pricing is becoming absurd, we have no qualms, we will rather let go that business than end up writing it. Vice versa, if we see an opportunity which we're able to respond, we'll go ahead and see what's required. So it's about the right pricing. And in many ways, as it will also be mentioned by Bhargav when he spoke about the incremental services, the value-added services that we're able to give, we are also on the belief that we are in a position to charge an extra premium of what is required, which facilitates easy based on our selling policy services and the time of requirement just typically for the general insurance companies in the moment of crisis when something has gone wrong. So we balance that act, but we are right up there in terms of taking cost as when required. Bhargav, anything?

No, it's good.

Thank you, Mr. Mantri. Our next question comes from Sameer Bhise, I hope I'm once again saying this correct from, JM Financial. It says, any comments on how do these tech investments, which is AI, ML, help in product pricing decisions? Any tangible examples you could highlight?

Chirag, you want to take that?

Yes, I can take that. So a lot of the models on the AI, ML side, I think we talked about which are on the acquisition as well as the servicing side of things. However, we are also kind of investing in a lot of the models with the image data that we're looking at in terms of segmentation models for us to be able to differentiate between customers that are good risk versus not-so-good risk. And that's helping us kind of also to the earlier question with respect to dynamic pricing, right? It's helping us gear up towards kind of identifying those segments, which we will be able to price a lot better. And some of the examples that we've been working on for quite some time is also -- and there's still a long way to go is one is on the telematics piece where we experimented with the sandbox product, and we were able to use that data to be able to differentiate between good drivers as well as not-so-good drivers. So that's just one example. There are multiple such examples, which we've been working on both the model side as well as the outside of things.

Thank you. Next up, the next question is from Manish Shah from Comgest Singapore. Have you tied up with independent vendors, that means non-dealers, to provide repair services of 2-wheelers? Has this reduced claims for users?

The answer is yes, we have launched our PPN strategy quite a -- preferred payment network strategy quite some time back, both for private car and 2-wheelers. And the effect is -- or rather focus for us has largely been on the private car side. And largely, our agency and our digital customers, we encourage customers to go to our preferred payment network garages. So it's been something that we've had, and we are scaling up, and you're seeing some good traction there. And whenever we are able to do that, we see benefit in terms of our loss ratios.

Thank you, sir. Next question is from Abhishek Saraf from Jefferies. What advantages and disadvantages we have in our digital initiatives vis-a-vis digital-only niche insurance manufacturer?

Okay. So...

I just want to -- I say yes. The biggest disadvantage is the capital burn model that some people are willing to sustain. Other than that, I don't think there is any major disadvantage that we have. The whole approach that we did with Vivek coming in from the similar ecosystem 3 years back and a completely different kind of a setup that we have there to drive speed, agility and execution and capability, I think that's working for us. And you saw the digital -- that team is focusing on 2 things. One is the sales that happens on our own website, plus the digital partnerships. And you saw the numbers in the last 2 years that we achieved competing with some of the pure-play digital companies. So I think the only -- in a sense, the real -- only real challenge is whether you're willing to burn capital, and we are not willing to burn capital in a very sustainable manner.

Thank you. Next question is from Deepika Mundra, JPMorgan. What's the difference in customer acquisition costs and B2C digital channels for Lombard versus traditional? How is the scale-up compared to some of the B2C players that seem to be growing rapidly?

So I'll take it, and Vivek, you can add if you want to. There is a delta initial cost of acquisition on the digital side, can be expensive. The charges that comes along with it can be relatively expensive. But if you see the lifetime value of the customer, subsequently, where the renewals happen, and we've seen better retentions across category on the business, which is shown in a digital manner, this cost can be easily managed. And we operate a lifetime value model asset when we look at this particular channel strategy acquisition, and we're very comfortable on that basis. On our growing book, obviously, they can be a challenge because when you acquire the customer, there are higher cost attributions that comes in. But over a period of time, we will see this model as a very, very sustainable manner. And that's why we have kept ourselves extensively invested. And we take pride in the fact that when we look at our digital -- in the company, we look at as good as an independent entity operating with a strong purposes to drive growth and alliances.

Yes, Sanjeev, just to add on to that. I think also touching to the point that Bhargav had mentioned, there are obvious advantages when you have a direct relationship with the customers. We've also seen that in our retention rates. We've also seen that these customers reach out to us when it comes to claims, and we are able to provide a superior experience and also reduce our loss ratios when it comes to which networks or which partners they get their vehicles or their health treatment done. All of these gives you an opportunity to be more aggressive and invest in customer acquisition plan that hits the flywheel. And that is the unique nature of owning the customer and of the direct-to-channel business.

Yes. But just to add to what Vivek said, so finally, because at the end of the day, there has to be some margins on a variable basis, right? So if your loss ratio is more than 100, now how does this works, what Vivek talked about or what Sanjeev talked about, and that's the point that I was making. So you have to run this business, initial first year cost may be high. But over the next couple of years, it becomes viable as long as your loss ratio is, at least, somewhat reasonable.

Thank you. Next question comes from [ Shreya, ] Axis Capital. Could you share any economies on selling on your own platform versus third-party aggregators such as policy bazaar? Any new product launches recently, and some color on the BeFit digital campaign?

Sanjeev?

Yes. So I think in terms -- we are not there on the digital platform. We are there in the B2B2C closed loop digital platform we have been working and operating. But as I've mentioned, we do believe in owning the customers. And we don't want to use pure pricing as a play to acquire customers with the kind of operation and servicing that we do. We want to ensure that we get our set of pricing, and that does us in good light. And frankly speaking, while there's a play available for them, we haven't seen ourselves being disadvantaged by taking that cost. So we compete with them like anybody else as far as business is concerned. On the BeFit campaign that you're talking about, I think on the product side, Bhargav and the team has already spoken very extensively. We are the only company offering cashless services. It's been a unique campaign that we launched, and we've been overwhelmed actually. In many ways, the response that come yesterday on Twitter which was trending at #1 as an overall campaign, which has been a big -- a good moment for us. The overall intake has been very good. We do believe that -- and we've seen significant surge also coming in. But there's a play on the campaign relatively young. Over a period of time, we will see that converting into actual results, while we have also seen almost, in value terms, 30%, 40% of expense that we have done towards actual sales also via this product campaign.

Thank you, Mr. Mantri. The next question is from Sahej Mittal, HDFC Securities. What are the renewal rates of the policies sold over the ILTakeCare app? Some comments on the quality of the book underwritten online versus the physical channel, any comments on health going on the motorway in terms of competitive prices?

On the retention side, the kind of retentions that we have in terms of policies that we sell digitally on an overall basis, on motor, we will mention -- and on the health side, we will have a retention of about 75% or thereabout.

Thank you very much. Next question is by [ Deepak ] Haitong Securities. Apart from Renew, Buy what are other web aggregators are we in panel with? Do we have any product line to be sold only through our own digital website or third-party web aggregators?

So we work with some of them in a very close-loop manner, as I've mentioned. As far as our website philosophy is concerned, all products that are typically available to multiple channels are available on the website also. So there is no differentiation. Clearly, we do have certain products, which are in the line in a very big way, which would be only the digital products, which will have a clear differentiation, but I want to keep that still in wraps because we are in the stages of approval from that. And as when that happens, we will hear about it sooner than later.

Thank you very much. There is one more question, which is from Sahej Mittal, FHDC Securities. What are the renewal rates of the policies sold over ILTakeCare app? We have already done this one.

Yes. So I mean...

I think it was just this year, we first -- there a few months when we started selling. So renewals, we'll have to wait for some time.

Thank you. I think these are all the questions that we have for now. Thank you to all our senior management for answering those for us. I hope everyone who asked the questions, all their doubts are clear. And of course, if not, we are always there. You can always write to us, and we will be happy to answer the same. Well, with this, we bring an end to today's ICICI Lombard Digital Day. Digital is definitely the way forward. We have been doing a bit and so have you. With that, this would be me, Sanchalli Arora, signing off, wishing you a safe, healthy and smiling journey ahead. Thank you.

Thank you so much.

Thank you so much.