Embedded Insurance – Huge opportunity to increase Insurance Penetration in India – InsuranceNewsNet

Gurugram, India, December 5, 2022 /PRNewswire/ — India has significant gaps in insurance coverage penetration across all sectors of society. The insurance penetration rate of health insurance and life insurance he is less than 5%, moreover those who are insured do not have adequate insurance according to their needs.

one of the reasons Low penetration results in higher costs of selling insurance products and higher premiums for customers.

India followed by Road to become A digitally driven economy with nearly 600 million active internet users. With the rise of digitization, today’s organizations are taking advantage of technological breakthroughs and making great strides in e-commerce, payments, lending, WealthTech, and more.

Vikas AnandCEO safe tree (brand name of A2V Insurance Brokers Private Limited), a Gurgaon-based InsurTech, says the digital infrastructure could offer a great opportunity to provide insurance to the majority of Indians. built-in insurance It refers to abstracting insurance functions into technology so that third-party organizations can seamlessly integrate compelling insurance solutions into their customers’ buying journeys. This ensures more affordable, relevant and personalized insurance for third-party customers. built-in insurance Bringing the demand and supply of risk mitigation solutions closer together in a context that makes insurance more relevant and therefore more attractive.

some travel aggregators India has seamlessly incorporated travel and related insurance into the purchasing process. It was recently reported that Indian A major travel aggregator saw a 270% increase in sales of insurance products. January 2022.

Internationally, many organizations have successfully integrated insurance into their customer-facing services, and it now forms a significant part of their revenue.of China, ant group With the popularity of Alipay, it manages a digital financial services platform with a huge customer base. ant group focuses on understanding consumer needs, educating them on the value of insurance, and designing compelling solutions with their suppliers. We currently offer 2000 customized, affordable and flexible life and non-life insurance products from 90 different insurance suppliers.With this embedded strategy, Ant is closing the protection gap, and as a result, Ant’s insurance division has become the largest online insurer in the United States. China Has over 500 million customers.

Bima is a prime example of embedding affordable health insurance into the mobile ecosystem, closing the protection gap for 35 million Africans in 2020. Interestingly, his 75% of these customers are accessing insurance for the first time.

In the US, home security hardware companies have also started selling home insurance to their customers. The combination has been very successful and has become a strong proposition for all stakeholders. Customers were able to get lower insurance coverage with a simplified buying experience. Hardware company gains additional revenue streams and improves customer retention and loyalty. In addition insurance companies Accessed low-risk customers and created alternative distribution channels. They are now starting to sell auto insurance to their customers.

Fintech players and customers of e-commerce platforms will greatly benefit from access to customized financial products at lower premiums due to the reduced operating costs of embedded technology.

Mr. Anand He also emphasized that product conformance, claims process and technology are key factors for success. built-in insurance model. Since insurance is a push product, we need to carefully understand customer needs and build products with unique features at competitive prices.

safe tree Insurance recently developed an embedded product for a new pesticide brand that provides personal accident insurance to rural farmers who purchase the product. This combination has the potential to increase the brand value of agrochemical companies by offering unique products, and in the future, such partnerships will go a long way in narrowing the domestic penetration gap.

By 2030, experts say built-in insurance will be 3 trillion dollars market opportunity and China About 50% of the insurance market will be sold as embedded insurance.

Mr. Anand I believe India teeth Asia Pacific India, the second largest insurance technology market, will see more partnerships between product companies and insurers in the coming years, increasing insurance penetration in the underserved Indian market. prize.

About SafeTree

SafeTree is an insurtech company focused on improving our clients’ businesses through meaningful product innovation. We integrate technology and design into client-centric solutions based on industry insights to deliver on our brand promise of ‘Simple Insurance’.

SafeTree is a group of experienced financial professionals and technocrats. Our main driving force is to advise and protect the interests of our clients and communities against various risks.

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