Fairfax-backed Go Digit gets green light for life insurance
India’s insurance regulator on Friday granted its approval for Go Digit Life Insurance Ltd, which will become the 25th life insurer in the country. The Insurance Regulatory and Development Authority of India (Irdai) said in a statement, “Irdai, in its 122nd meeting held on 2 June 2023, has granted the certificate of registration to a new life insurer, namely, Go Digit Life Insurance to carry life insurance business in India.”
Currently, Watsa’s Fairfax, in a tie-up with insurance industry veteran Kamesh Goyal, owns Go Digit General Insurance Ltd, a general insurance company. The new life insurance joint venture is likely to have Fairfax effectively holding a 30-40 % stake initially, according to a person familiar with Go Digit’s plans. The company may start with an initial capital of ₹700 crore- ₹1,000 crore, the person said on the condition of anonymity.
Go Digit Infoworks, as the holding company, will own 80% of Go Digit Life. Later, the life insurance company may place minority stakes with certain banks to strengthen its bancassurance network. This may lead to a proportionate reduction in stakes held by the partners, including Fairfax, the person added.
