‘India fastest growing market for German insurer Ergo’

MUMBAI: India has emerged as the fastest-growing market for German insurance giant Ergo, which is looking at global expansion due to limited growth opportunities in its home market. The 12-15% growth in India outpaces 2-3% rise seen in Germany, Oliver Willmes, chairman of Ergo International, told TOI in an exclusive interview.
HDFC Ergo – its joint venture in India – accounts for 6% of its global business, he said.”It is a matter of time when the share of international business will come to 40-45%. This is not far away,” he said, underscoring the increasing significance of India in the company’s overall portfolio. HDFC Ergo, a key player in the non-life insurance sector, is a 2-billion-euro company, with Ergo owning a 50% stake. “This contributes 1 billion euros to our international portfolio,” Willmes said.

The group’s international business, which spans Europe and Asia, has been crucial to its revenue growth, with 6 billion euros generated outside of Germany in 2023.
Ergo’s expansion into digitalisation has also been advanced in India, with a tech hub established to leverage local expertise. “We have two tech hubs – one in Poland and the newer one in India. We are using the highly skilled tech people we find here,” said Willmes, who is also the chief operating officer of Ergo International. The tech centre in India has 550 employees. On life insurance, Willmes said there are no immediate plans for India, but the company is open to opportunities. “We are happy with the activities in HDFC Ergo, and if there are new opportunities on the life side, we will look at them,” he said.
Willmes said that while digital channels have gained importance post-pandemic, face-to-face interactions remain relevant. “In India, HDFC Ergo issues 96% of its policies in straight-through-processing (no human intervention), but face-to-face sales are not going away,” he said.