Stock under Rs 100: The fascinating journey from Rs 2 to Rs 50 and big breakthrough for this stock, as its wholly owned subsidiary receives insurance broker licence!

Indian insurance market is hugely underpenetrated as compared to other larger economies. Currently the sum assured as percentage of GDP is 25 per cent in India as compared to 95 per cent for China and 273 per cent for USA

RattanIndia Enterprises Ltd. (REL) announced that its wholly owned subsidiary, Neotec Insurance Brokers Ltd. has received insurance direct broker licence from IRDAI for life and general insurance. This licence will pave the way for REL to start the business of sales of life and general insurance products though digital channels on its fintech marketplace platform BankSe.  

Indian insurance industry presents a huge market opportunity with highly underpenetrated insurance market. As per IRDAI records, the insurance industry in India stood at Rs. 7.6 lakh crore in terms of total premium in FY 2020. As per Frost & Sullivan report, the insurance industry in India is expected to grow annually at CAGR of 17.8 per cent to reach Rs. 39 lakh crore by FY2030. Indian insurance market is hugely underpenetrated as compared to other larger economies. Currently the sum assured as percentage of GDP is 25 per cent in India as compared to 95 per cent for China and 273 per cent for USA. Similarly per capita premium in India is at Rs. 5,600 vs Rs. 31,000 for China. This presents a huge headroom for growth for sale of insurance products in the country.  

Digital distribution channels will drive the next phase of growth in the insurance distribution landscape in India. Digital India ecosystem with Aadhaar and Account Aggregator network is enabling self-service platforms through digital modes which provide a hassle-free consumer experience in cost efficient and transparent manner for customers. REL will be at the forefront of this insuretech revolution with its data-driven digital delivery of insurance products at grassroot level on its fintech platform BankSe.  

The stock has gained a staggering, over 2600 per cent in the last three years and when the pandemic struck the stock was trading around Rs 2 a piece in March 2020 and today it is quoting at a half century!