RIL announces insurance entry; JIo Financial to offer life, general, health products

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Reliance Industries on Monday announced its plans to foray into the insurance sector through Jio Financial Services (JFS), which will provide “simple, yet smart” life, general, and health insurance products through a digital interface.

Jio Financial is looking to potentially partnering with global players, and will use predictive data analytics to co-create contextual products with partners to cater to customer requirements, RIL Chairman Mukesh Ambani said at the AGM.

Ambani attributed Jio Financial’s growth potential to a digital-first architecture, healthy capitalisation, net worth of Rs 1.2 lakh crore and strong board of management led by K.V. Kamath.

“Just like Jio and Retail, JFS too will prove to be an invaluable addition to the Reliance ecosystem of customer-facing businesses,” he said adding that the recent de-merger to set up Jio Financial has been like a “mini bonus” for RIL’s long-term investors.

Each shareholder received one share of Jio Financial for every share of RIL held by them.

Lending, payments

“JFS is born to accelerate the replication of India’s dazzling growth story in Bharat,” Ambani said adding that the focus will be on the informal and underserved sectors in rural, semi-urban, and urban areas, with the aim of accelerating inclusive growth.

This the NBFC plans to achieve by transforming and modernising financial services, with a digital-first approach which will help simplify products, reduce cost of service, and expands reach, he said, adding that for SMEs, merchants, and self-employed entrepreneurs, ease of doing business must mean ease in borrowing, investments, and payment solutions.

In payments, Jio Financial will consolidate its payments infrastructure with an offering for both consumers and merchants, Ambani said, adding that the company will not just compete with current industry benchmarks but also “explore path-breaking features such as blockchain-based platforms and CBDC”.

BlackRock JV

Ambani also touched upon Jio Financial’s recent asset management JV with US-based BlackRock. The the world’s largest asset manager, BlackRock manages worth over $ 11 trillion.

“Jio Financial Services brings digital infrastructure capabilities and local market knowledge, and BlackRock brings global investment and risk management expertise. Together, we will aim to transform India’s asset management industry through a digital-first offering and democratise access to affordable, innovative investment solutions,” said Larry Fink, Chairman and CEO of BlackRock.