Rural India Rises with Mahindra Insurance Brokers
- 10-year journey successfully completed in 2014
- 6 million customers serviced since inception till date, of which 1.14 million were serviced in last fiscal alone
- Over 4,00,000 customers serviced in Uttar Pradesh in the last five years by offering them various insurance solutions, reaching the benefits to over 30,000 villages
- FY 2014 - 2015 Performance
* 1.14 million Retail cases serviced
* 750 Commercial customers serviced
* Rs.1,003 crores Gross Premium generated
* Rs.126 crores Income
* Rs.172 crores Net Worth
* Rs.65 crores Profit Before Tax (PBT)
* Rs.43 crores Profit After Tax (PAT)
Lucknow, November 3, 2015: Mahindra Insurance Brokers Ltd. (MIBL) began life with an equity capital of Rs.50 lakhs, and all of 14 people. Today, it numbers over 750 people, with PAT of Rs. 42.9 crores in F2015. Its solutions now reach over 1.25 lakhs villages across India. From pioneering innovative insurance solutions like Loan Suraksha, MIBL has continued to diversify its offerings with solutions like Arogya Suraksha which is for health insurance, in addition to Motor insurance solutions. In September 2012, the company’s valuation stood at Rs.520 crore, when an investment from Inclusion Resources Pte Ltd., a subsidiary of LeapFrog Investments, was made for a 15% equity stake in the Company.
Premium generated has grown from Rs. 24 crore in F2005 to Rs.1,003 crores in F2015, reflecting its strong growth trajectory. MIBL has been a profit-making and dividend-paying company from year one. It started with a PAT of Rs.1.73 crore in its very first year of operations, and also declared a dividend in the first year. A cash surplus and zero-debt company, its Networth as of March 31, 2015 was Rs.172 crores.
“As far as India is concerned, our Vision is to be India’s No. 1 insurance broker by 2015. We already occupy a leading position, and this dream is well within our reach. To give you an idea of how fast we are growing, the number of cases serviced since inception has crossed the 6-million mark, and in the last financial year alone, we serviced over 1 million cases. We strive to serve the under-penetrated markets and under-served customers across the rural markets of India. Our ultimate goal is to reach every Indian household with an insurance solution,” says Dr Jaideep Devare, Managing Director, Mahindra Insurance Brokers Ltd. (MIBL), who is one of the members of the company’s Founding Team.
MIBL provides Health, Wealth (asset protection) and Life insurance solutions; covering health, vehicles/tractors and life insurance solutions across rural India. In short, protecting, “Arogya, Dhan, Sampada”.
“We are also very enthused with the vision of the new government at the Centre which intends to focus on health and life insurance for all, especially in rural India,” says Dr Devare.
Protecting Rural India
MIBL has developed several innovative solutions like Loan Suraksha and Arogya Suraksha, specially designed to adapt to the prevailing conditions in the rural and semi-urban areas.
Loan Suraksha is a customised, innovative insurance solution offered to Mahindra Finance vehicle and tractor loan customers, through which, in the unfortunate event of the customer’s death, the outstanding loan amount is waived off and the vehicle or tractor can be retained by the customer’s family. MIBL co-created this unique solution along with Mahindra Finance and an insurance company, with a focus on customer-centricity. Very often, there is no medical doctor present in a village to issue a death certificate. To facilitate the process of claim settlement for the customer’s family, MIBL worked with the insurance company to accept the proxy of a Panchayat or Sarpanch’s letter to this effect.
In Uttar Pradesh, MIBL has serviced over 4,00,000 customers in the last five years by offering them various insurance solutions, reaching the benefits to over 30,000 villages across Uttar Pradesh.
From a million to a billion
Having crossed the 1.14 -million mark of cases serviced in F2015, MIBL now aspires to reach out to a billion people in India.
MIBL’s vision also goes well beyond the horizon as it sets its eyes on the global market.
A few years ago, MIBL added the Commercial line of business to focus on the Small and Medium Enterprises (SME) segment to offer risk management solutions. It also realised that if it wanted to be competitive and grow even bigger, it needed to evolve into a Composite broker which would encompass reinsurance broking as well. MIBL got a licence for reinsurance broking which allowed it to spread its wings globally. The company already has relationships in over 30 countries.
The company’s long-term Vision: To be the first Indian company amongst the Global Top 100 Insurance Brokers in Revenue by 2020.
For this pioneering company, the past – and the future – can perhaps be best summed up in three words, Aspire, Arise and Achieve. This eventful journey of just over 10 years has been very satisfying for the entire team. “It is incredibly fulfilling to be able to transform the lives of people and thereby drive positive change. Settling claims is the biggest learning for us. Years later, when you see the same families rehabilitated, you feel really good that you were able to make a difference in their lives. In fact, I think we have been living the credo of Mahindra’s Rise philosophy – Accept No Limits, Alternative Thinking and Driving Positive Change – since inception”, says Dr Devare.
About Mahindra & Mahindra Financial Services Limited
Mahindra & Mahindra Financial Services Limited (Mahindra Finance), part of the Mahindra Group, is one of India’s leading non-banking finance companies. Focused on the rural and semi-urban sector, the Company has over 3.8 million customers and has an AUM of USD 5.8 billion. The Company is a leading vehicle and tractor financier and also offers fixed deposits and loans to SMEs. The Company has over 1,100 offices across the country and is the first finance Company from India to form a part of Dow Jones Sustainability Index.
The Company's Insurance Broking subsidiary, Mahindra Insurance Brokers Limited (MIBL), is a licensed Composite Broker providing Direct and Reinsurance broking services.
Mahindra Rural Housing Finance Limited (MRHFL) a subsidiary of MMFSL provides loans for purchase, renovation, construction of houses to individuals in the rural areas of the country.
The Company has a JV in US, Mahindra Finance USA, in partnership with De Lage Landen, a subsidiary of Rabo Bank, for financing Mahindra tractors in US.
The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency.
A USD 16.9 billion multinational group based in Mumbai, India, Mahindra provides employment opportunities to over 200,000 people in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheeler industries.
In 2015, Mahindra & Mahindra was recognized as the Best Company for CSR in India in a study by the Economic Times. In 2014, Mahindra featured on the Forbes Global 2000, a comprehensive listing of the world’s largest, most powerful public companies, as measured by revenue, profit, assets and market value. The Mahindra Group also received the Financial Times ‘Boldness in Business’ Award in the ‘Emerging Markets’ category in 2013.
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