Should Digit Insurance push direct-to-consumer sales or stay partner-led?

Introduction

Go Digit General Insurance listed on Indian stock exchanges in May 2024 and reported FY26 gross written premium of about ₹11,294 crore, profit after tax of about ₹544 crore, and market shares of 3.4% overall and 6.3% in motor. Its growth has come mostly through partners: dealers, aggregators, banks, brokers and POSP agents, with a Digit executive citing around 85% of volume from partners. In early 2026 the company described moving from channel-based to partner-based underwriting, cutting back on lower-return partners. The question: should Digit invest heavily in direct-to-consumer (D2C) digital sales, or stay partner-led?

Key business objectives:

1. Grow premium faster than the market profitably.
2. Improve the combined ratio, which was above 100% in FY26.
3. Diversify beyond motor, as health declined in FY26.
4. Build a durable advantage as distribution regulations and Bima Sugam reshape the market.

Steps I'll follow:

1. Clarify the strategic goals
2. Analyse the market and competition
3. Define vision and roadmap
4. Prioritise initiatives
5. Plan execution
6. Set metrics
7. Manage risks

Step 1

Clarify the Strategic Goals (3-4 minutes)

• Is the primary goal growth, profitability or resilience? I'll assume profitable growth: Digit is now listed, and investors watch combined ratio and return on equity closely.

Why it matters: D2C has high acquisition costs early but lower commissions and better retention later.

• What does "direct" include? Digit's website and app, WhatsApp, and embedded journeys where Digit owns the customer relationship (for example, OEM apps through direct premium fetching).

Why it matters: Some "partner" channels can still give Digit a direct relationship.

• Which product lines matter most? Motor is the core; health and other retail lines are where D2C may matter more because customers research them.

• What is the time horizon? Three to five years.