The underneath penetration of the insurance coverage market in India gives a possibility for everybody even when it’s outdoors the monetary companies sector — into one thing like e-commerce to develop into a brilliant app of kinds. As an example, Walmart-owned e-commerce firm Flipkart on Monday introduced foray into the insurance coverage phase by partnering with Aegon Life Insurance coverage to supply life insurance coverage cowl starting from Rs 1 lakh to Rs 40 lakh from March 2020 onwards, on its market, with none medical exams or paperwork. This digital coverage, with annual validity, has premiums ranging from Rs 129 to Rs 5,512, as per the Flipkart app.
Each Amazon and Flipkart have been reportedly planning to enter the insurance coverage phase even earlier than early final 12 months. Flipkart’s foray into the insurance coverage market comes round two weeks after Paytm introduced buying the brokerage license for its subsidiary Paytm Insurance coverage Broking Personal Restricted to promote life and non-life insurance coverage merchandise. Nevertheless, Amazon is but to step into this phase. As per Statista, penetration of insurance coverage trade in India as of 2018 stood at simply 3.7 per cent whereby life insurance coverage phase penetrated to round 2.74 per cent however non-life insurance coverage area stood at a a lot decrease degree of market penetration of simply 0.97 per cent.
Importantly, Walmart’s fintech enterprise PhonePe had additionally forayed into the insurance coverage enterprise in January this 12 months by providing journey insurance coverage to leisure and enterprise travellers travelling overseas with a sum insured of as much as $1 million. The insurance coverage market dimension in India is wish to be price $280 billion by this 12 months, as per IBEF.
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Flipkart, which sells virtually each shopper product one may presumably consider, began flight reserving companies in 2018 adopted by Amazon India in Could final 12 months. In accordance with Flipkart, the corporate desires to switch “the notion that it (insurance coverage) is dear and cumbersome to purchase, adopted by points round lengthy and inflexible tenures and mis-selling” with the digital coverage providing. The age bracket for patrons who would possibly need to purchase a coverage from Flipkart is 18 – 65.
“We’re dedicated to growing options that can assist bridge the hole between India and Bharat, and we’re assured that the easy-access insurance coverage coverage will likely be one of many catalysts to energy this transition,” stated Ranjith Boyanapalli, Head – Fintech and Funds Group at Flipkart in a press release. Aegon, however, will piggyback on Flipkart’s attain and progress in on-line procuring to broaden its digital attain. “With increasingly more Indians getting used to buying on-line, promoting insurance coverage companies has an enormous scope and an e-commerce platform resembling Flipkart has a novel attraction with clients. This partnership will assist us broaden the attain for our time period insurance coverage options Pan India,” stated Satishwar Balakrishnan, CFO & Principal Officer, Aegon Life Insurance coverage.