One spine from lead to payout — the premium, the conversion, the days, and the leakage at every handoff. Where a lead turns into an underwritten, issued, serviced and collected policy (and where premium gets stuck).
₹3,285 Cr is leaking or stuck across the 44-day lead-to-cash cycle — the largest single pool is ₹1,500 Cr at Lead & Sale. Close the renewal lag and past-grace book to pull premium forward without selling a thing.
6 of 6 headline metrics improving vs prior · still off target: Gross Written Premium (GWP) ₹1,01,290 Cr vs ₹1,10,000 Cr, Premium Collection Days 14d vs 12d, Policy Issuance TAT (days) 12d vs 8d
Each lapsed policy is renewal premium and embedded value that won't recur — persistency is the quality gauge.
Lapsed / unconverted leads (banca + agency + digital) — pure premium sitting in the cycle, not a sales problem.
Surface the normalized walk in investor comms; same GST-ITC drag on VNB margin.
Reported PAT ₹2,470 Cr (+2%); underlying ~₹3,120 Cr (+29%) ex GST-ITC reversal & labour-code.
Leverage EoM headroom & digital STP; protect the cost advantage.
Cost ratio 10.6% (opex 6.1% + commission 4.4%) on GST-ITC & investment — still lowest among large peers.
The lead-to-payout cycle for the book, end to end. A lead becomes a proposal, a proposal becomes an underwritten & issued policy, issuance becomes a first premium, servicing becomes a renewal, and a renewal becomes collected premium — 44 days from lead to cash, with ₹3,285 Cr leaking or stuck across the handoffs. Each stage links to the 360 that owns it and the records to work. (Group & single-premium business settles on a steadier cadence — this is the individual-regular lane.)
Premium flowing through each stage, the conversion from the prior stage, days in-stage, and the leakage at the handoff.
The biggest levers are underwriting/issuance (medicals & KYC) and collection — the sale handoff is quick; the renewal lag is the quiet one.
Each leak quantified, owned, and linked to the 360 and the records that fix it — the premium-recovery list.
Lapsed / unconverted leads (banca + agency + digital)
Declines / drop-offs at underwriting (medicals, KYC)
Free-look cancellations & first-premium dishonour
Renewal notices unpaid within grace
Read this: the two working-capital pools are ₹260 Cr of unpaid renewals within grace (Service & Renew) and ₹125 Cr of premium past grace at lapse risk (Claim / Maturity) — both pure premium. Closing the renewal lag and the past-grace book pulls ~₹385 Cr of premium forward without selling a thing.
Value, conversion, days, leakage and owner — drill to the owning 360.
| Stage | Value | Conv. from prior | Days in-stage | Leakage | Owner | Drill |
|---|---|---|---|---|---|---|
| 📇 Lead & Sale | ₹1,04,000 Cr | — | 9d | ₹1,500 Cr | Distribution · Banca & Agency | → |
| 📝 Underwrite & Issue | ₹1,02,500 Cr | 99% | 12d | ₹900 Cr | Underwriting · Actuarial | → |
| 💳 First Premium | ₹1,01,800 Cr | 99% | 3d | ₹500 Cr | Operations · New Business | → |
| 🔄 Service & Renew | ₹1,01,290 Cr | 100% | 6d | ₹260 Cr | Operations · Persistency & Renewals | → |
| 🏆 Claim / Maturity / Payout | ₹97,400 Cr | 96% | 14d | ₹125 Cr | Treasury · Renewals & Claims | → |