Magma HDI General Insurance Company has entered a corporate agency partnership with Mahindra & Mahindra Financial Services Limited (Mahindra Finance), a leading non-banking financial company (NBFC).
The alliance is designed to deliver a range of customised general insurance products to Mahindra Finance customers, covering motor and non-motor segments.
It comes amid significant shifts in insurance claims trends in India, particularly in the motor, health, and term insurance sectors. A recent study by Policybazaar pointed to rising costs and changing consumer demands as primary factors influencing claims behaviour.
Motor insurance claims remain driven by accidents, theft, and weather events, with claims rising 40% during the monsoon season. Heavy rainfall leads to increased vehicle accidents and flood-related damage, particularly in regions prone to severe weather.
Hatchbacks dominated the claims landscape, accounting for 54% of motor insurance claims, with typical claim amounts ranging from ₹20,000 to ₹25,000. SUVs, which comprise 26% of claims, were associated with higher average repair costs, generally between ₹30,000 and ₹35,000.
The agreement was formalised at a ceremony attended by Rajive Kumaraswami (pictured left), managing director and CEO of Magma HDI General Insurance, and Raul Rebello (pictured right), managing director and CEO of Mahindra Finance, along with other senior executives.
“This strategic collaboration will provide reach [to] the ever-growing insurance sector while delivering on our commitment of being a responsible financial solution partner to emerging India,” Rebello said.
Kumaraswami emphasised the importance of the initiative, noting that it marks a significant step in uniting the ecosystem to advance the insurance industry’s vision of “Insurance for All by 2047.”
“By offering tailored insurance solutions, we are committed to enhancing our customers’ financial security and ensuring the peace of mind they need to navigate life’s uncertainties,” he said.
In May 2024, the Insurance Brokers Association of India (IBAI) and the Insurance Regulatory and Development Authority of India (IRDAI) held discussions to outline a roadmap for achieving “insurance for all” by 2047.
The talks emphasised increasing insurance awareness, fostering innovation in product offerings, and creating more career opportunities in the sector.
IBAI highlighted the significant contribution of brokers to India’s insurance ecosystem, particularly their role in driving premium growth and enhancing product reach.
