 "Chairman Mukesh Ambani speaks during the 46th AGM of RIL (Photo: PTI)")
Jio Financial Services (JFS) will enter the insurance market in partnership with global companies, said Mukesh Ambani, chairman of Reliance Industries, of which JFS is a part.
“JFS will enter the insurance segment to offer simple yet smart life general and health insurance products through a seamless digital interface, potentially partnering with global players,” said Ambani at the 46th annual general meeting (AGM) of Reliance Industries.
JFS will explore blockchain-based and Central Bank Digital Currency (CBDC) platforms. “Jio Financial Services will massively increase financial services penetration by transforming and modernising them with a digital-first approach that simplifies financial products, reduces cost of service, and expands reach to every citizen through easily accessible digital channels,” he said.
JFS in July announced a 50:50 joint venture with US-based BlackRock to set up an asset management company in India for an initial investment of $150 million. Ambani said the partnership "will synergise the respective strengths of JFS and BlackRock to deliver tech-enabled, affordable, and innovative investment solutions."
The country has 26 life insurance companies and 31 non-life insurance companies, according to data from the Insurance Regulatory and Development Authority of India (IRDAI).
While granting approval to two latest entrants in the sector (Acko Life Insurance and Credit Access Life Insurance Company), IRDAI had said another 20 applications are in the pipeline.
The gross direct premiums earned by general insurance companies rose by 18.3 per cent in July to Rs 23259.23 crore from the previous year, according to monthly data from the General Insurance Council of India (GIC). The Life Insurance Council of India separately reported a contraction of 28.69 per cent to Rs 27867.10 crore in premium in the same period.
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JFS is supported with funds amounting to Rs 120,000 crore which will aid it in creating a well capitalised platform. “This is a highly capital intensive business. [The] company has provided JFS with a strong capital foundation to build a best-in-class trusted financial service enterprise and achieve growth,” Ambani said.
“The digital-first architecture of JFS will give it an unmatched head start to reach millions of Indians.”
Jio Financial Services ended 2.05 per cent down at Rs 210.10 after opening at Rs 213.35 on the National Stock Exchange on Monday.
