On August 28, during the annual general meeting, Mukesh Ambani, the chairman of Reliance Industries, announced that Jio Financial Services (JFS) will enter the insurance segment to provide life, general, and health insurance products. This move is part of JFS’s plan to offer seamless digital insurance products, potentially partnering with global players. JFS aims to use predictive data analytics to create contextual insurance products in collaboration with partners, meeting customer needs uniquely.
JFS recently became a separate entity listed on the stock exchanges on August 21. Shareholders received one share of JFS for each share of RIL they held in the demerger, which Ambani likened to a mini bonus.
In addition to this development, JFS has a partnership with Blackrock to enter the asset management industry. The company is now officially stepping into the insurance sector as well, with a potential global partner.
Ambani highlighted that the financial services sector is capital-intensive, and RIL has provided JFS with a strong capital foundation of Rs 1,20,000 crore to build a trusted financial services enterprise.
Foreign broking firm CLSA noted that Jio already has a broking business with over 17 insurance partners, which can be scaled up quickly. While life insurance penetration in India is in line with the global average, non-life insurance penetration lags behind. This presents a significant opportunity for JFS to make an impact, potentially starting with corporate relationship driven segments like group health and commercial insurance. Jio Financial Services closed at Rs 210.10 on the NSE, reflecting a 2.05 percent decrease from the previous close.