Mumbai, July 16: ICICI Lombard is eyeing niche areas such as cyber insurance as it gears up for its initial public offer (IPO).
Cyber insurance, according to the company, will be a $750 million market by 2020 from $300 million, while globally it is expected to be a $20 billion business by 2025 from $4 billion.
The need for companies to seek cover from computer viruses has grown after the WannaCry ransomware attack in May blitzed through more than 200,000 computers in 150 countries within a day after it announced itself on May 12.
The company will also seek new opportunities in small towns and rural areas apart from other emerging risk segments such as home insurance.
The non-life insurer, which is a joint venture between ICICI Bank and Canada-based Fairfax Financial Holdings Ltd, filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to dilute around a 19 per cent stake through the IPO. It will be the first private sector general insurer to go public with an IPO.
ICICI Lombard General Insurance Company is the largest private-sector non-life insurer in India (based on gross direct premium income in 2016-17), a position it has been maintaining since fiscal 2004.
The insurer offers diverse products, including motor, health, crop/weather, fire, personal accident, marine and engineering insurance, through multiple distribution channels.
The company has taken multiple strategies to maintain its growth in domestic non-life insurance. In the draft prospectus, the insurer says it is also looking at new opportunities in all its segments.
The insurer is planning to grow the gross direct premium income from policies sold through individual agents as this channel offers significant opportunities for growth. ICICI Lombard also plans to continue investing in the retail health segment.
"We will offer innovative indemnity-based products to a broad base of customers along with independent advisory and health assistance services, thereby increasing the competitiveness and attractiveness of our indemnity-based health insurance products,'' ICICI Lombard said.
The insurer hopes to capture the opportunities created by the growth in the SME insurance market by increasing its distribution footprint and offering higher automation.