In a strategic move to bolster its newly-demerged entity, Jio Financial Services Ltd, Reliance Industries Ltd is collaborating with executive headhunters from around the to find a leader who will spearhead the insurance business arm of Jio Financial Services Ltd.
Representatives of RIL have engaged with several companies in the past few weeks to collaboratively identify leaders across the life, health, and general insurance sectors. According to Bloomberg, discussions have taken place between representatives of the Mukesh Ambani-led conglomerate and firms such as Korn Ferry and Spencer Stuart Inc.
During RIL's 46th annual general meeting held on Monday, Chairman Mukesh Ambani announced that Jio Financial Services (JFS) is set to make its foray into the insurance sector.
"JFS will enter the insurance segment to offer simple, yet smart, Life, General, and Health insurance products through a seamless digital interface, potentially partnering with global players. It will use predictive data analytics to co-create contextual products with partners and cater to customer requirements in a truly unique way," he said.
Ambani revealed that Reliance has infused JFS with a substantial net worth of Rs 1,20,000 crore, establishing it as one of the globally most well-capitalised financial service platforms right from its inception.
The company intends to capitalise on the extensive subscriber base of its telecom division, Jio, which comprises 450 million mobile phone users. Through this network, JFS aims to market its offerings, encompassing payment services and more, highlighted by Ambani.
Ambani further detailed that JFS is geared towards democratising financial services for the 1.42 billion-strong Indian population. The mission is to provide them with access to straightforward, cost-effective, pioneering, and user-friendly products and services.
In a recent development, JFS unveiled a strategic collaboration with BlackRock for the mutual funds sector. This joint venture aims to enhance and expand their mutual funds business operations, reported Business Today.
"BlackRock is the world’s largest asset management company, managing assets worth over $11 trillion with a stellar reputation and track record. The JV will synergise the respective strengths of JFS and BlackRock to deliver tech-enabled, affordable and innovative investment solutions," he said.
Larry Fink, who serves as the Chairman and CEO of BlackRock, also delivered remarks during the RIL Annual General Meeting.
"We see enormous potential for growth in the country’s asset management industry. We see growing financialisation and a shift from unmanaged and physical assets to saving and investing, and we expect this to increase as per capita GDP continues to rise and technology advances digital inclusion," said the BlackRock CEO.