Insurance News Details

Go Digit Life Insurance to invest up to Rs 600 crore as it starts out

(12-Jun-23   10:09)

Go Digit Life Insurance, in which both HDFC Bank and Axis Bank have bought stakes, plans to invest ₹500-600 crore in the initial 18 months to start out as the country's 26th life insurance company aims to launch its first product within 30 days.

The company Promoted by Prem Watsa's Fairfax and by industry veteran Kamesh Goyal. Go Digit's entry adds to the number of insurers operating in the life insurance sector, marking the first expansion since 2011. Apart from Fairfax and Goyal, HDFC Bank and Axis Bank each hold 9.9% stake in the company.

A large part of the ₹600 crore will be invested into tech and the company will focus on the protection line of business, according to a source.

Go Digit received the R3 certification on Friday after obtaining the R1 and R2 licenses. At this stage, the regulator scrutinises the financial condition of the promoters, foreign investors and the general character of the management. The regulator evaluates the company's business plan, expected business volume, capital structure and earning prospects.

Srinivasan Parthasarathy, formerly the chief actuary of HDFC Life, has been appointed as the CEO, while Sanjay Vij, who previously led bancassurance in HDFC Life, has been appointed as the deputy CEO.

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