Liberty General Insurance is a General insurance provider in India. It was a joint venture between Videocon Industries Limited, ; and Liberty Citystate Holdings PTE Ltd, a subsidiary of Liberty Mutual Group. Liberty Mutual Insurance is an America based global insurer which is the fourth-largest property and casualty insurer in the US. Videocon sold its entire stake to Enam securities and diamond dealtrade in march 2018 ending its role as a majority stakeholder
Liberty Videocon General Insurance came into operation in India in 2013, and provides comprehensive commercial, private, and industrial insurance. The company presently has 58 offices all over the country, and is headquartered in Mumbai.
Video Liberty General Insurance
Establishment
Liberty Videocon General Insurance is a group company of US based Liberty Mutual Insurance Group. Liberty Mutual is in business since 1912 and is headquartered in Boston. Operating in over 30 countries, it is the fifth largest property and casualty insurer in the U.S. The company, based on 2015 revenue, has been ranked 73rd on the Fortune 100 list of largest corporations in America.
Headquartered in Mumbai in India, Liberty Videocon General Insurance is a joint venture between Liberty Mutual's parent company, Liberty Citystate Holdings PTE Ltd and Videocon Industries, an Indian conglomerate rated among India's Top 15 private Business Houses and is listed among the 100 Emerging Giants of the World.
Maps Liberty General Insurance
The Partnership
Liberty General Insurance got an approval from the Insurance Regulatory and Development Authority (IRDA) of India, which enabled the company to commence operations in April 2013. Videocon Industries initially held 74% of the share capital in the insurance firm, and the rest is owned by Liberty Citystate Holdings. With a change in local regulations in India in 2016, as the government allowed a 49% foreign investment, Liberty Mutual increased its stake in the company to 49%, leaving Videocon with a 51% share which was later sold to Enam securities and diamond deal trade
Market Presence and Expansion
As of Dec 2017, Liberty Videocon had a market share of 0.54% & Growth rate of 38.68%. The company had 20 offices in 8 major cities within a year of its operation, in 2014. The insurance provider planned to add 25 more branches by 2015, for which the company ran a bulk hiring process of over 200 people in 2014. Operating through 35 branches as of July 2016, the company plans to achieve a target of setting up around 80 branches all over India, focusing on the tier-II and tier-III towns in 2017. As of Dec 2017 LVGI operates 58 branches pan India.
Liberty Videocon has also secured over 30 district cooperative banks as "affinity partners" to help them distribute vehicle and personal accident insurance, particularly for the farmers.
Financials:
The company started operations with an initial capital of Rs. 350 Crore. The first three months of the company's operation were on a soft launch stage, during which it collected a gross direct premium of Rs. 39.25 crore in the first quarter of 2013 itself. By February 2014, with 35 products in its portfolio, the company had obtained a premium of Rs. 100 crore. With Latest capital infusion by Liberty Mutual, the paid up capital of company has now increased to Rs. 1084 crores. This is one of the highest paid up capital for any general insurance company in India.
Business Model:
Liberty Videocon General Insurance has recently started with the "Bancassurance" model as it signed a tie-up agreement with UCO Bank. Under this, the promoter bank distributes the company's products at its branches using its existing customer base. It now has over 300 promoter bank branches, and plans to hire 200 to 300 people just to service that.
Initially, Liberty Videocon experimented with a Telematics-based insurance in India but it could not take off due to warranty and privacy related concerns raised by automakers, dealers and customers. Thereafter, Liberty Videocon has now been looking at a mobile-based telematics app to track customer data.
Products
Liberty Videocon General Insurance Company provides multi-line insurance products and services through multiple distribution channels, with an emphasis on personal insurance including Motor, Home, Health and Personal Accident protection. Currently, 70% of the company's premium collection comes from the retail segment and the remaining 30% from the commercial sector.
It offers the following products -
Liberty Videocon launched its bundled package for the SME sector that could cover businesses against property or cash losses, fire as well as health problems of group of employees, in the year 2014. Last year in August 2016, a multi-year two-wheeler package policy was also introduced by the brand, to eliminate the need of renewing two-wheeler insurance every year.
Awards and Recognition
Their list of awards include:-
- June 2013: "Best Newcomer" by Celent Awards at the 3rd Asia Insurance Technology Awards.
- June 2014: "Rising Star Insurer" at the 4th edition of The Indian Insurance Awards organized by Fintelekt
- September 2014: "CEO with HR Orientation" at the Times Ascent HR Asia Pacific Excellence Awards.
- November 2014: "Employer of the Choice" by Excellence Awards.
References
External links
- Liberty General Insurance
- https://economictimes.indiatimes.com/industry/banking/finance/insure/videocon-to-exit-insurance-biz-sell-entire-stake-to-diamond-dealtrade-enam/articleshow/63369715.cms
Source of the article : Wikipedia
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