India-based e-commerce firm Flipkart has teamed up with legacy insurer Aegon Life Insurance coverage, per Your Story. Below the partnership, Flipkart will promote Aegon’s insurance policies through its personal platform. The life insurance coverage coverage protection choices offered on Flipkart will differ from Rs 1 lakh ($1,349) to Rs 10 lakh ($13,491), with the premiums for the previous beginning at Rs 129 ($1.74). Insurance policies might be out there for present Flipkart clients between the ages of 18 and 65.
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By diversifying its providing into life insurance coverage, Flipkart might enhance its e-commerce market share, and given the agency’s already massive person base, uptake for the brand new service might be excessive.
Providing fintech providers might be a boon for Flipkart because it competes for market share with Amazon in India. As of 2019, Amazon was India’s e-commerce chief, however Flipkart is on observe to overtake the tech large by 2023. Flipkart has dabbled within the fintech world — final 12 months, for instance, the e-commerce agency teamed up with alt lender ZestMoney to provide its customers entry to point-of-sale finance choices when shopping for merchandise on-line on its platform — however this marks its first large push into the trade.
And providing fintech providers in India will possible repay: The nation has the best international fintech adoption price (87%) amongst digitally lively shoppers, in contrast with the worldwide common of simply 64%, per EY. Therefore, shoppers within the nation will possible be prepared to check out the brand new digital service.
Moreover, life insurance coverage penetration in India is low, which is each a chance and a hurdle. Insurance coverage penetration in India stood at simply 3.7% throughout the fiscal 12 months 2018-19, in contrast with the worldwide common of 6%, per knowledge from IRDAI.
The low adoption might be attributable to lack of understanding and availability of applicable insurance coverage providers, which Flipkart’s digital providing might enhance upon: The e-commerce large already has round 160 million registered customers on the platform, and it might convert them into policyholders. That mentioned, Flipkart will possible additionally must spend closely on advertising and marketing efforts to make shoppers conscious of the advantages of life insurance coverage.
Flipkart’s transfer provides to the variety of different nonfinancial providers companies dipping into fintech through partnerships. This announcement provides Flipkart to the assorted different firms making strides into the monetary providers trade by teaming up with fintechs or legacy gamers: Apple, for instance, partnered with Goldman Sachs for its bank card enterprise final 12 months, whereas ride-hailing large Uber inked a cope with Holvi, a Finnish banking service supplier for small- and medium-sized companies (SMBs), to supply its drivers entry to monetary providers. Taking place the partnership route will possible assist nonfinancial firms guarantee they’re providing applicable providers.
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