Enterprise
Capri Global surges 15% on receiving corporate agency licence
Shares of Capri Global Capital Ltd (CGCL) soared as much as 15% to ₹916.85 apiece on the BSE today, after the company received the licence from the Insurance Regulatory and Development Authority of India (IRDAI) to distribute life, general, and health insurance products.
Securing the composite corporate agency licence from the IRDAI will help not only broaden the non-banking financial company (NBFC’s) range of products, but also fortify its fee income, the company says.
“The company is planning to use data analytics, artificial intelligence, and blockchain to deliver insurance solutions. This will enable CGCL to automate claims processing and customer support services, thereby reducing the cost of operations while improving customer satisfaction,” the company says in a filing exchange.
The primary objective of the insurtech platform is to forge an environment where insurers can provide coverage in a manner that is not only more cost-effective but also customer-centric, the company says. "This approach is envisioned to align with the IRDAI’s mission of "Insuring India by 2047."
Capitalising on its robust branch network in northern and western India, CGCL aims to strategically cross-sell insurance products, offering personalised solutions to borrowers for comprehensive coverage against life and non-life risks.
“With this tech-centric focus, CGCL aims to leverage its robust active client base of 270K as of Sep’23 to cross-sell insurance products. In H1 FY’24, CGCL disbursed total loans amounting to Rs. 62 Bn and added 107K live clients. Further, the Company has on behalf of the partner Banks originated Car Loan of Rs. 44 Bn i.e. 39K new clients,” the company says.
It expects to generate a net fee income of Rs 20 crore from insurance cross-sell in FY’25.
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The company is set to streamline its operations by automating claims processing and customer support services, thereby reducing operational costs. The platform is poised to embrace a flexible payment policy, encompassing digital wallets, credit cards, net banking, and debit cards.
In a separate development, CGCL recently received a notice worth ₹62,000 plus GST from the Securities & Exchange Board of India (SEBI) for the non-disclosure of extent and nature of security created and maintained with respect to secured listed NCDs in the financial statements. The company says it intends to make an application for waiver to the exchange.
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