Zuno GenIns: Shanai Ghosh's Tech-Centric Plan to Hit Break-Even by FY27 after a 19% GDPI Surge in FY25
Shanai Ghosh predicts achieving balance by the subsequent fiscal year.
Ready to roll with a tech-driven approach, Shanai Ghosh, CEO of Zuno General Insurance, shares the company's ambitious roadmap to breakeven in FY27. Backed by the mighty Edelweiss Group, Zuno GenIns closed FY25 with an impressive 19% GDPI (Gross Direct Premium Income) growth, surpassing the industry average of 6%. Taking the wheel, Ghosh revealys Zuno's strategy to maintain this momentum, targeting a whopping Rs 1,250 crore premium in FY26, while aligning with Irdai's EoM norms and venturing into new territories like health and commercial insurance. Here are the crucial insights from Ghosh's exclusive chat:
Break-Even by FY27 - Achievable Mission
Ghosh declared that Zuno GenIns aims to breakeven in FY27, marking a significant milestone for the company. To achieve this goal, the company has set a premium target of around Rs 1,250 crore for FY26, representing a healthy growth rate between 25%-30%. Even if the industry growth moderates, Zuno remains confident in reaching this target, ensuring continued growth at 2.5 to 3 times the industry rate.
Navigating Irdai's EoM Regulations
Since Zuno started operations in 2018, it is still above the EoM (Expenses of Management) threshold of 30%. As a fast-growing general insurer, the company is adjusting its product mix to keep its EoM within regulatory limits. With a focus on cost control and a tech-first model, Zuno hopes to maintain a competitive edge despite the challenges presented by legacy companies.
Diversifying the Product Portfolio
Currently, motor insurance accounts for approximately 58% of Zuno's portfolio. The company's strategic decisions revolve around three core pillars: innovation, experience, and efficiency. It evaluates each product segment according to these parameters, with motor and health insurance showing the most promise. Zuno began with motor insurance, built a strong foundation, and then entered the health insurance market, focusing on group health due to its scalability and cost-effectiveness. The company plans to focus 40-45% on motor insurance, 35-40% on health insurance, and 15-20% on emerging segments like commercial insurance over the next few years, aiming to create a diversified, scalable portfolio.
Thriving Amid Market Challenges
Vehicle sales are projected to be subdued for the year, posing a potential threat to Zuno's growth. However, the company remains optimistic, pointing to its ability to continue growing at 2.5 to 3 times the industry rate, despite any slowdown in core segments. Zuno's success is highlighted in its exceptional performance in the motor insurance and property insurance sectors, even in challenging market conditions.
Looking Ahead with Edelweiss
Zuno GenIns continues to grow under the guidance of its parent company, Edelweiss Group. With a tech-focused approach, strategic product diversification, and a commitment to innovation, Zuno GenIns is well-positioned to capture a larger share of the insurance market and achieve its ambitious break-even target in FY27[1].
[1] Zuno GenIns aims to diversify its product portfolio, targeting health and commercial insurance segments to capture a larger share of the market and reach profitability within the targeted timeline. While specific operational tactics or new product launches were not disclosed, this strategic shift suggests a strong commitment to growth beyond motor insurance.
- Shanai Ghosh, CEO of Zuno General Insurance, plans to navigate Irdai's EoM regulations by adjusting Zuno's product mix to keep its EoM within regulatory limits.
- Aiming to create a diversified, scalable portfolio, Zuno GenIns plans to focus 40-45% on motor insurance, 35-40% on health insurance, and 15-20% on emerging segments like commercial insurance over the next few years.
- In order to maintain this momentum, Zuno GenIns has set a premium target of around Rs 1,250 crore for FY26, representing a healthy growth rate between 25%-30%.
- Despite potential threats to its growth due to subdued vehicle sales, Zuno GenIns remains optimistic and is well-positioned to continue growing at 2.5 to 3 times the industry rate, thanks to its tech-focused approach and strategic product diversification.
