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<ul><li>In the last 10 years, the insurance industry has adapted itself to the fast-paced internet world and has become hassle-free. </li><li><keyword id="3463335" type="PERSON" weightage="20" keywordseo="pushan-mahapatra">Pushan Mahapatra</keyword>, MD and CEO, <keyword id="6400643" type="UNKNOWN" weightage="20" keywordseo="SBI-General-Insurance">SBI General Insurance</keyword> walks us through the evolution of <keyword id="6512638" type="UNKNOWN" weightage="20" keywordseo="insurance-sector">insurance sector</keyword> and shares what the future of <keyword id="3779111" type="PERSON" weightage="20" keywordseo="digital-insurance">digital insurance</keyword> in India will look like. </li></ul>The insurance sector has endured an evolution over the past years, which has largely impacted the direction of the industry and shifted its traditional expectations. Due to a range of dynamic external influences from technology to socioeconomic factors to government policies, these macro trends are poised to continue, changing the insurance industry along with it. Since its inception, insurance industry has grown stronger as the sector adopted itself to increased awareness, innovative products, and more distribution channels. Though there has been a growth in premiums at the industry level, the insurance penetration level in India is still very low as compared to other countries in the world, thereby providing ample opportunity for all insurers in the ecosystem to grow. With over 460 million internet users, India is the second largest online market, ranked only behind China. By 2021, there will be about 635.8 million internet users in India, most of the digital population in India are mobile internet users. This has resulted in people who are adopting more digital mediums to interact and with the backing of the government to push for the digital India movement, the insurance industry is also adopting digital technologies in presence. The use of web-based technologies as an Insurance service delivery medium has added new elements to service dissemination. Escalation in self-service technologies has provided customers with multiple choices for using the services offered by insurers. The online service attributes of ‘convenience’ and ‘ease of use’ are being given priority by insurers for designing web-based services Future of digital insurance New digital platforms support micro duration and atomisation of insurance by item. In a digital era where the customer needs are ever-changing, insurance providers need digital infrastructure to introduce, evaluate, and adopt new products/technologies/business models. Building such infrastructure in-house will be costly and slower. Integrating with third party systems like hospitals to evaluate medical data for underwriting, evaluating the wellness of a policy holder in terms of fitness and his need during the entire customer lifecycle would ensure better products and pricing. Also, use of telematics systems in auto-insurance would change vehicle insurance from class-based pricing to driver behaviour-based pricing. Distribution through E-Tailors, Web aggregators and fintech companies are expected to witness an upward momentum in coming years In addition, Insurers in India are gradually adopting digital medium to provide their services keeping in view the millennials as well as rural penetration. Use of digital medium instead of physical distribution are much more feasible for them to reach out to the end users as well as increase insurance penetration. We are also witnessing improved quality data (IIB, IRDAI) availability for insurers for better underwriting decisions and service efficiency. - By Pushan Mahapatra, MD and CEO, SBI General Insurance Also see: <div type="Article" hostid="261" msid="73046703" title="Top stocks to buy in 2020, recommended by experts" mstype="2" mssubtype="0"></div>

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The future of digital insurance in India

Mumbai, Jan 21 () Despite low penetration, the ongoing economic slowdown will impact insurance premium collections over the next two to three years, global ratings agency Moody's Investors Service said on Tuesday.
 The total insurance premium collected slowed down marginally for the year-ended March 2019, while the dip in growth was much sharper for general insurance, it said in a report.
 The report comes at a time when India's GDP growth is estimated to have slowed down to a decadal low of 5 per cent in 2019-20 as per official estimates. 
 The International Monetary Fund has pegged the number at 4.8 per cent and expects it to pull down global growth as well.
 "We expect India's more moderate economic expansion to result in slower (re)insurance premium growth over the next 2-3 years," the rating agency said in its report.
 Total insurance premium grew 11.3 per cent in 2018-19 as against 11.5 per cent in the year-ago period due to a slowdown in economic growth, while the same for general insurance, which amounts for a fourth of the overall industry, was sharper at 12.5 per cent from 17.6 per cent a year before, it said.
 The agency, however, said that low penetration points to further growth penetration in the Indian market from a long term perspective.
 As the middle class expands, there will be a greater scope for insurance companies, it said, pointing out that the penetration stood at 3.7 per cent in 2018, which is low as compared to developed markets such as UK at 10.6 per cent and the US at 7.1 per cent.
 Health premiums in particular are likely to continue to increase as a result of the launch of Ayushman Bharat or National Health Protection Mission in September 2018, which aims to give a cover of Rs 5 lakh for 100 million families, it said.
 Moody's, however, said that the approach adopted by a majority 23 states is "less favourable" to insurers than the alternative insurance model, where government funds are paid to insurers in the form of premiums.
 Insurers may nonetheless be involved in trust funds as India's states have the option of a hybrid model in which insurance protection is purchased for claims in excess of given limits, it added.
 The agency also noted that the changes in foreign ownership caps are credit positive for the sector and added that new reinsurance regulations will benefit non-life insurers. AA RVK

Economic slowdown to hit insurance premium collections: Moody's

New Delhi, Dec 6 () Postmen and grameen dak sevaks might soon be able to sell insurance policies, with regulator Irdai issuing guidelines wherein such people have to be sponsored by the India Post Payments Bank (IPPB).
 The IPPB, which is a corporate agent, can seek permission from Irdai for sponsoring postmen and grameen dak sevaks of Department of Posts (DoP) to act as Point of Salesperson (PoS), Irdai said.
 ln case the authority grants permission, IPPB shall be responsible for all acts of omission and commission of the persons appointed as PoS, it added.
 The regulator said the DoP will have to identify postmen and grameen dak sevaks and furnish the list to it from time to time and IPPB may have tie-ups with as many number of insurers as allowed under the regulations.
 "These postmen and grameen dak sevaks will be operating largely in un-banked and under-banked geographical areas and can provide the last mile reach to sell insurance products in remote and rural areas," Irdai said.
 Bulk of products in motor insurance, travel insurance, personal accident insurance, term insurance, require very little under writing as these are largely pre-underwritten products.
 Based on the information provided by the prospectus, the insurance policy is automatically generated by the system. The intervention required for such a product is minimal and the training and examination for such persons could be of a lesser degree, Irdai said.
 "Therefore, in order to facilitate the growth of insurance business in the country and to enhance insurance penetration and insurance density, the authority as part of its developmental agenda issued the guidelines on PoS Persons," Irdai said.
 "This would provide financial inclusion and increase insurance density and penetration in the country which is in line with the objective of the Authority," it said.
 The IPPB will be responsible for training and certification of postmen and grameen dak sevaks; daily reconciliation and reporting of all transactions; compliance to code of conduct; compliance with KYC norms; setting up of a robust grievance redressal mechanism to address grievances raised by customers, as per the guidelines.
 Irdai said IPPB will also have to put in place a system to identify the postman and grameen dak sevak who has sold an insurance policy. KPM ANU

Postmen, grameen dak sevaks may soon start selling insurance policies

New Delhi, Jan 30 () An Irdai panel has suggested introduction of daily premium payment policies to deepen insurance penetration in low-income groups.
 The committee on 'micro-insurance' also said the product benefits need to be simple so that they can be easily understood by customers.
It should be clearly spelt out in terms of gives and gets for the customer -- that is, what the customer gives and what s/he gets, the panel said in its report.
 Micro-insurance is specifically intended for the protection of low-income people, with affordable insurance products to help them cope with and recover from financial losses.
 The panel has also made a case for 'goal based savings products' like those for child education or higher education.
 On the pricing front, it said reduction in reserve requirement even for a short duration can help in better pricing and may also help in assessing the impact of such products in improving penetration.
 There is also a requirement of waiver of stamp duty on micro-insurance plans especially for life insurance policies.
 "Option to pay single premium in daily/ fortnightly/ monthly/ quarterly instalments should be allowed.
 "Alternatively, customers should be allowed to pay mortality premium in lump sum with remaining premiums to be allowed to be paid in instalment," it added.
 The panel, headed by Suresh Mathur, also said e-KYC process is required to reduce cost and ensure smooth onboarding and claim settlement process. Also, digital signatures should be encouraged for micro-insurance business.
 In India, around 29.5 per cent of total population lives below the poverty line. Of these 36 crore people, 10.2 crore live in urban areas while 25.8 crore live in rural areas.
 The committee has also recommended introduction of enabling provisions for registration of specialised micro-insurance company through insurance cooperative society.
 It further suggested that as the ticket size of premium for micro-insurance policies will be very small, regulator Irdai may consider reduction in requirement of present equity capital of Rs 100 crore for the micro-insurance company. NKD CS ABM

Irdai panel pitches for daily premium payment policies to promote micro-insurance

<ul><li><keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> wants to start selling <keyword id="6360041" type="UNKNOWN" weightage="20" keywordseo="life">life</keyword>, health and general <keyword id="35450" type="COMPANY" weightage="20" keywordseo="insurance">insurance</keyword> policies to its Indian customers in the capacity of a corporate agent. </li><li>Unsurprisingly, Amazon’s local rivals, <keyword id="6357120" type="DEFINITION" weightage="20" keywordseo="paytm">Paytm</keyword> and <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>, are also preparing to enter the segment given the low rate of insurance penetration in the country. </li><li>The share of insurance premiums as a percentage of GDP stood at 3.7% of GDP in 2017-18, according to Swiss Re, a reinsurer, compared to a global average of 6.1%.</li></ul>Amazon India had had its sights set on the country’s financial services space for a while. Last year, it started offering a digital wallet in India to shoppers on its e-commerce platform. Earlier this week, Amazon’s payments arm launched a service that allows Indian consumers without credit cards to purchase products on an EMI basis. Next on the list? Amazon wants to start selling life, health and general insurance policies to its Indian customers in the capacity of a corporate agent, according to Bloomberg. In essence, it will list the various policies and products offered by insurance companies on its website. Much like the platform PolicyBazaar, Amazon plans to allow customers to pick and choose between different policies and purchase coverage like they would buy a mobile phone or book. Unsurprisingly, Amazon’s local rivals, Paytm and Flipkart, are also preparing to enter the segment given the low rate of insurance penetration in the country. The share of insurance premiums as a percentage of GDP stood at <a href="https://www.moneycontrol.com/news/business/economy/indias-insurance-penetration-premium-per-person-up-marginally-in-fy18-swiss-re-2681721.html">3.7%</a> of GDP in 2017-18, according to Swiss Re, a reinsurer, compared to a global average of 6.1%. There’s a lot of room to grow and the industry is expected to record $280 billion worth of revenues in the current fiscal year, as per a study by ASSOCHAM. More importantly, only 3% of insurance is estimated to be bought online, a figure that will surge as the access to the internet increases. In <a href="https://www.bloombergquint.com/technology/2017/11/24/flipkart-plans-to-sell-insurance-awaits-regulators-nod">November last year</a>, Flipkart was said to have applied to the Insurance Regulatory and Development Authority of India (IRDAI) for a greenlight to start selling life and general insurance policies on its website. Meanwhile, in February 2018, Paytm’s parent set up two units for life and general insurance after receiving a corporate licence to do so in September 2017.

Amazon wants to sell insurance policies to Indians

The <keyword id="6358021" type="General" weightage="100" keywordseo="budget" source="Orion">Budget</keyword> has left the life insurance industry a worried lot with the new tax proposal on higher premium annuity products, a move which the industry fears will hit their top-lines by 10-12 per cent. Leading private life insurer <keyword id="472962" type="General" weightage="50" keywordseo="hdfc-life" source="Orion">HDFC Life</keyword>'s chief executive <keyword id="323997" type="General" weightage="50" keywordseo="vibha-padalkar" source="Orion">Vibha Padalkar</keyword> told PTI that she stares at 10-12 per cent hit on the company's top-line with the Budget proposal to tax life products having annual premium of over Rs 5 lakh. She also fears that the increased tax exemption bracket of Rs 7 lakh and the steep reduction in the maximum surcharge on the affluent to 39 per cent from 42.74 per cent earlier may nudge them to spend more and save less. This can have many cascading impacts on the macro sector by way of a spike in the already high inflation, apart from the life insurance sector which has been facing sales issues since the Covid pandemic as people were not investing in long-term savings. And since the opening up of economic activities, many are on a "revenge spending mode" and not investing in financial products even now. Given the overall increase in incomes, the government should have either ignored the new tax levy on insurance products or it should have imposed tax on products with premium of Rs 10 lakh or upwards. At this level, it will definitely hit the industry hard, she added. The industry was expecting a proposal to offer composite lincence for the insurance sector wherein life insurers would be allowed to renter the health business which they were doing till 2015. Besides, the insurance sector players were also expecting some positive moves on the annuity products front. <keyword id="699506" type="General" weightage="50" keywordseo="tarun-chugh" source="Orion">Tarun Chugh</keyword>, chief executive of <keyword id="138574" type="General" weightage="50" keywordseo="bajaj-allianz-life" source="Orion">Bajaj Allianz Life</keyword>, said the tax proposal on higher value non-Ulip or traditional life policies "is bit of a dampener for the insurance industry and for increasing penetration of insurance and household financial savings." "We as a market still have quite low insurance penetration and there is a need to provide measures and incentives to boost that in the coming years. Also, household financial savings have been falling and insurance is a critical component of that. Household financial savings as percentage of GDP has fallen from 8.1 per cent in FY20 to 6.5 per cent in FY23, he said and warned that discontinuing incentives on insurance plans should put further pressure on household financial savings to some extent. Vighnesh Shahane, chief executive of <keyword id="10687373" type="General" weightage="50" keywordseo="ageas-federal-life-insurance" source="Orion">Ageas Federal Life Insurance</keyword>, said the finance minister has announced that from April income from life insurance policies, other than Ulips, with an aggregate premium amount of Rs 5 lakh per annum or more, which was earlier tax-free, will now be taxable. But she said if the insured person dies in between, the death benefit will continue to remain tax-free. The move is similar to the proposal introduced a couple of years ago which imposed tax on the maturity amount of Ulips if the annual aggregate premium exceeded Rs 2.5 lakh, he said. The proposal is likely to dent the sales of non-par products which have been witnessing strong growth over the last few years, especially during the pandemic. As the cap of Rs 5 lakh is applicable for all life policies across insurers, it may deter individuals from purchasing additional policies if they have exhausted their limit with their primary insurer, he explained. <keyword id="14942220" type="General" weightage="50" keywordseo="supriya-rathi" source="Orion">Supriya Rathi</keyword>, a wholetime director at <keyword id="2647323" type="General" weightage="50" keywordseo="anand-rathi-insurance-brokers" source="Orion">Anand Rathi Insurance Brokers</keyword>, opined that the budget has "given bad news for life insurance companies" by limiting the income tax exemption on proceeds of insurance policies.

Life insurers stare at 10-12% hit on top-line as Budget taxes higher premium products

Mumbai, Mar 5 () The General Insurance Council, the apex industry lobby of the 44-member strong non-life insurers, on Thursday said almost all health insurance policies cover epidemics, including coronavirus. The statement comes after the regulator Irdai on Wednesday asked insurers to cover coronavirus cases in their existing policies and also to ensure that they expeditiously attend to the coronavirus claims. "Almost all the existing health policies cover almost all epidemics, which includes the coronavirus too. What the regulator (Irdai) said was not to frame a new policy but asking the industry to treat coronavirus cases expeditiously," A V Girija Kumar, chairman of the General Insurance Council, told here on the sidelines of an industry event to launch an awareness campaign to increase adoption of general insurance policies. There are 30 confirmed cases of coronavirus infection in the country as of Thursday, of which 16 are Italian tourists. On Wednesday, the Insurance Regulatory and Development Authority of India (Irdai) asked insurers to expeditiously settle hospitalisation claims related to coronavirus disease under health policies. It also instructed insurers to come out with policies to cover treatment costs for coronavirus infection, which has impacted thousands of people worldwide. "For the purpose of meeting health insurance requirements of various sections, insurers are advised to design products covering the costs of treatment for coronavirus," Irdai said in a circular. He said the campaign is funded by the 44-strong industry -- 25 general insurance companies, six standalone health insurance and two specialised insurance companies, along with 11 reinsurers -- to drive awareness about the importance of non-life insurance. Kumar, who is also chairman of the state-run Oriental Insurance Company Ltd, said the industry is on course to close the current financial year at Rs 2 lakh crore and the industry is eyeing to double the size to Rs 4 lakh crore by 2024-25. He also said the industry has set a target of increasing the adoption of non-life insurance policies to 2.5 per cent from the current 1 per cent by 2029-30. He said that over the past two decades -- since the privatisation of the industry -- the non-life insurance industry has grown at a compound annual growth rate of about 17 per cent and the premium is expected to be Rs 2 lakh crore this year, up from about Rs 10,000 crore in 2000-01. Though the penetration in this period has increased from about 0.5 per cent of gross domestic product (in 2000) to around 1 per cent now, this is far below the penetration of 1.85 per cent and 2.8 per cent in Asia and globally, respectively. According to the latest Irdai data, only about 4.2 crore individuals have a retail health policy, leaving out-of-pocket spends at about 65 per cent as compared to global average of 18 per cent. BEN HRS

General insurers say existing health policies cover coronavirus

<ul><li>The Motor Vehicles (Amendment) Bill was tabled by <keyword id="26680" type="PERSON" weightage="20" keywordseo="Nitin-gadkari">Nitin Gadkari</keyword>, the Minister for Road Transport &amp; Highways in the Lok Sabha.</li><li>It has one hiccup for the Indian insurance industry – unlimited cap on third party insurance liability. </li><li>The earlier version of the Bill had capped the liability at ₹10 lakh but that has been removed. </li></ul>While the Motor Vehicles (Amendment) Bill would make way for compulsory insurance cover for all road users in India, it has one hiccup for the Indian insurance industry – an unlimited cap on third party insurance liability. The earlier version of the Bill, which has been three years in the making, had capped the liability at ₹10 lakh. “The earlier proposed capping on claims amount for a third-party liability cover has been removed and currently stands at an unlimited amount. This might lead to increased perceived value of third party insurance but might lead to very high losses,” said Animesh Das, Head of Product Strategy, <keyword id="4055885" type="PERSON" weightage="20" keywordseo="Acko-General-Insurance">Acko General Insurance</keyword>. The compensation for hit-and-run cases is increased to ₹2 lakh in case of a death, from the existing ₹25,000, added Das. The Motor Vehicles (Amendment) Bill was tabled by Nitin Gadkari, the Minister for Road Transport &amp; Highways in the Lok Sabha. The Bill hopes to change the way Indians drive on the roads. It also introduces heavy penalties for offenders. The Bill is also set to constitute a Motor Vehicle Accident Fund, which would provide compulsory insurance cover to all road users in India. And, there are also benefits for <keyword id="1405341" type="PERSON" weightage="20" keywordseo="Insurance-players">insurance players</keyword>. “The fine for not carrying a valid insurance is also increased to ₹2000. This shall lead to increased awareness and higher insurance penetration,” said Das.

Here’s why insurance players aren’t too happy with the Motor Vehicles (Amendment) Bill

<ul><li>With an annualized revenue of upwards of $25 million, Coverfox is working towards achieving a 500% growth rate in the next financial year.</li><li>While Coverfox focused on motor and <keyword id="6362363" type="UNKNOWN" weightage="20" keywordseo="health-insurance">health insurance</keyword> initially, it has eventually expanded its portfolio to include travel and life insurance.</li><li>Coverfox is looking at scaling up volumes by penetrating into the Tier II and Tier III cities.</li><li>It plans to go global in the next 2-3 years.</li></ul> Mumbai-based insurtech startup Coverfox is aiming big. With an annualized revenue of upwards of $25 million, the startup is working towards achieving a 500% growth rate in the next financial year. And it’s hopeful of achieving this by addressing the needs of the millennials who are well-versed with the digi-tech platform. Since its launch in 2013, Coverfox has acquired over a million customers and is working towards simplifying the entire process of insurance buying. Coverfox also launched its seller platform Coverdrive in 2017 which was primarily launched as a digital assistant for new insurance agents. In September this year, Coverfox reported that the platform issued close to a million policies across the country and grew by 300% for FY 2018-19. In a recent conversation with us, <keyword id="1179507" type="PERSON" weightage="20" keywordseo="Premanshu-Singh">Premanshu Singh</keyword>, CEO, Coverfox.com walked us through the platform’s journey so far and the factors that have helped them grow at a healthy pace. Edited excerpts: Q) Coverfox was launched in 2013. How has the journey been so far for the platform? We started with a small team, acquiring one customer at a time and we now have a million customers. We have expanded over the years to cover nearly all cities and states in the country. From the time of inception till date, we have been simplifying the insurance-buying process. We are now one of the most trusted InsurTech platform in which you can compare, buy and manage insurance policies on your own. While using the proprietary technology and algorithm-based platform, the users can easily compare and choose from a variety of plans from top insurers, understand the main features and then buy a policy that suits one’s needs. As a step forward, we also handhold the customers through the tedious claims process. The journey has been exciting, and we are energized to take it to the next level. Q) What was your primary business idea when you had launched and how has Coverfox evolved since then? We had the vision to create a digital ecosystem for the distribution of insurance, at the time when insurance wasn't even driven by technology. We realized that in such a tech-deprived ecosystem, the call-centre model was prone to mis-selling, attrition, and lack of a consistent user experience. These issues lead to limited accountability plus immense dissatisfaction amongst customers. Thus, we stayed true to the intention of creating an unbiased online insurance distribution business model and a tech-driven platform with no human error. We have successfully achieved digitization to quite an extent with the bike insurance product. Now 100% of the bike insurance business is unassisted. Also, 80% of the customers insure their two-wheelers under 4 minutes. The objective has always been to make the process of buying and managing insurance fast, simple, transparent and 100% unassisted for the user. Q) What kind of growth has Coverfox witnessed in the past few years? What rate have you grown at? We are growing at 4X and have the best InsurTech platform in Asia-Pacific. Coverfox focused on motor and health insurance in the initial days, and eventually expanded its portfolio to include travel and life insurance as well. With heavy investment plans in place on our B2C (Coverfox) and O2O (Coverdrive) platforms, we plan to delve deeper into the existing categories such as health, motor and life, while exploring some newer categories as well. We're the second largest InsurTech platform in India, and the largest one in the O2O space. Q) Today, a lot of platforms are offering what Coverfox has to offer. How do you differentiate yourself from the clutter? The online insurance space has a very limited penetration, which is less than 4% in India. However, the penetration rate is growing at a whopping 90%. The current insurance ecosystem is large enough to absorb multiple players. No one has an InsurTech platform like us that simplifies the entire insurance buying process for the end-user with minimal assistance. This is what differentiates us from our competitors. Q) It’s been more than a year since you launched Coverdrive. What kind of growth, adoption and reception has the platform witnessed? Coverdrive was launched in September 2017. The platform currently has over 50,000 agents registered across India. It has issued nearly a million policies and has witnessed a 300% growth for FY 2018-19. In fact, over one-third of Coverfox’s total revenue between the time span January 2017 and June 2019 came from our Point of Sale agents. We were able to achieve this milestone by tapping the power of technology. Q) What kind of revenues have you been getting and what’s the total funding you have raised till now? We have an annualised revenue of upwards of $25 million. We have raised a funding of $50 million approximately so far and are in the advanced stages of raising another $50 million. Q) What will your key focus areas be for the next few quarters? We will scale up whatever we offer, thereby making the journey comfortable and fulfilling for the customer. Our efforts will always be directed towards incorporating and scaling new technology, and solving new problems. We have been working with most insurance companies in the ecosystem and have associated ourselves with a partner who knows technology well and places the user right at the centre of the system. We are running towards creating 100% unassisted online buying journeys for our customers, while completely automating the claims plus endorsement process to reduce the turnaround time. We are looking at scaling up volumes by penetrating into the Tier II and Tier III cities. As of now, we plan to go global in 2-3 years from now. Q) Going ahead what will be your growth strategy? We plan to grow by 500% in the next financial year. We want to cater to the needs of the millennials who are very well-versed with the digi-tech platform. We have our customers spread across the major cities of India. We have expanded to approximately 800 cities so far. We are building a long-term business structure that is here to stay. We will just keep simplifying the complex world of insurance for our customers. With 35+ insurers on the platform, we are completely neutral and provide unbiased expert advice to all our customers. Only after careful scanning and thorough comparison does a user choose a product that best suits their requirements. We plan to go the extra mile to insure the last person on this planet! We are looking at building a profitable and sustainable business model, and constantly striving for the best.

With an aim of growing by 500% in the next financial year by catering to the needs of millennials, Coverfox plans to go global in the next 3 years

<ul class="summary-list"><li>This story was delivered to Business Insider Intelligence Fintech Briefing subscribers earlier this morning.</li><li><a href="https://store.businessinsider.com/products/fintech-pro-membership?IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=top_text&amp;itm_term=bundle_subscription_text_link-flipkart-teams-up-with-aegon-for-life-insurance-offering-2020-3">To get this story plus others to your inbox each day, hours before they're published on Business Insider, click here.</a></li></ul>India-based e-commerce company Flipkart has teamed up with legacy insurer Aegon Life Insurance, <a href="https://e.businessinsider.com/click/19748275.4/aHR0cHM6Ly95b3Vyc3RvcnkuY29tLzIwMjAvMDMvZmxpcGthcnQtcGFydG5lcnNoaXAtYWVnb24tbGlmZS1pbnN1cmFuY2UtZGlnaXRhbC1wb2xpY2llcw/5d233c18f730436f2414784fBdf2636dd" target="_blank" rel="noopener">per</a> Your Story. Under the partnership, Flipkart will sell Aegon's policies via its own platform. The life insurance policy coverage options sold on Flipkart will vary from Rs 1 lakh ($1,349) to Rs 10 lakh ($13,491), with the premiums for the former starting at Rs 129 ($1.74). Policies will be available for existing Flipkart customers between the ages of 18 and 65.By diversifying its offering into life insurance, Flipkart could boost its e-commerce market share, and given the firm's already large user base, uptake for the new service could be high.Offering fintech services could be a boon for Flipkart as it competes for market share with Amazon in India. As of 2019, Amazon was India's e-commerce leader, but Flipkart is on track to <a href="https://e.businessinsider.com/click/19748275.4/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2ZsaXBrYXJ0LXNldC10by1vdmVydGFrZS1hbWF6b24taW4taW5kaWEtbWFsbC1vcGVyYXRvci1hZGRzLW9ubGluZS1vdXRsZXQtbHVsdWxlbW9uLXRocml2ZWQtb25saW5lLWluLTIwMTgtMjAxOS0zP2NpZD1zZWFyY2g/5d233c18f730436f2414784fBb2be9394" target="_blank" rel="noopener">overtake</a> the tech giant by 2023. Flipkart has dabbled in the fintech world - last year, for example, the e-commerce firm <a href="https://e.businessinsider.com/click/19748275.4/aHR0cHM6Ly90ZWNoLmVjb25vbWljdGltZXMuaW5kaWF0aW1lcy5jb20vbmV3cy9zdGFydHVwcy96ZXN0LW1vbmV5LXBhcnRuZXJzLXdpdGgtZmxpcGthcnQtdG8tcHJvdmlkZS1lbWlzLXdoaWxlLWJ1eWluZy1wcm9kdWN0cy1vbmxpbmUvNjg3MDM3NDU/5d233c18f730436f2414784fBe4243a81" target="_blank" rel="noopener">teamed up</a> with alt lender ZestMoney to give its users access to point-of-sale finance options when buying products online on its platform - but this marks its first big push into the industry.And offering fintech services in India will likely pay off: The country has the highest global fintech adoption rate (87%) among digitally active consumers, compared with the global average of just 64%, <a href="https://e.businessinsider.com/click/19748275.4/aHR0cHM6Ly9hc3NldHMuZXkuY29tL2NvbnRlbnQvZGFtL2V5LXNpdGVzL2V5LWNvbS9lbl9nbC90b3BpY3MvYmFua2luZy1hbmQtY2FwaXRhbC1tYXJrZXRzL2V5LWdsb2JhbC1maW50ZWNoLWFkb3B0aW9uLWluZGV4LnBkZg/5d233c18f730436f2414784fB8bb0e5eb" target="_blank" rel="noopener">per</a> EY. Hence, consumers in the country will likely be willing to try out the new digital service.Additionally, life insurance penetration in India is low, which is both an opportunity and a hurdle. Insurance penetration in India stood at just 3.7% during the fiscal year 2018-19, compared with the global average of 6%, per <a href="https://e.businessinsider.com/click/19748275.4/aHR0cHM6Ly9jYWZlbXV0dWFsLmNvbS9uZXdzL2luc3VyYW5jZS8xODE5Ny1pbmRpYXMtaW5zdXJhbmNlLXBlbmV0cmF0aW9uLWlzLWp1c3QtMzc/5d233c18f730436f2414784fB793362fd" target="_blank" rel="noopener">data</a> from IRDAI.The low adoption could be due to lack of awareness and availability of appropriate insurance services, which Flipkart's digital offering could improve upon: The e-commerce giant already has around <a href="https://e.businessinsider.com/click/19748275.4/aHR0cHM6Ly9leHBhbmRlZHJhbWJsaW5ncy5jb20vaW5kZXgucGhwL2ZsaXBrYXJ0LXN0YXRpc3RpY3Mv/5d233c18f730436f2414784fBa99747c8" target="_blank" rel="noopener">160 million</a> registered users on the platform, and it could convert them into policyholders. That said, Flipkart will likely also have to spend heavily on marketing efforts to make consumers aware of the benefits of life insurance.Flipkart's move adds to the number of other nonfinancial services firms dipping into fintech via partnerships. This announcement adds Flipkart to the various other companies making strides into the financial services industry by teaming up with fintechs or legacy players: Apple, for example, <a href="https://e.businessinsider.com/click/19748275.4/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2FwcGxlLWNhcmQtaXMtaGVyZS1hbmQtcHJpbWFyeS1yZXNlYXJjaC1zaG93cy1jb25zdW1lcnMtYXJlLWF3YXJlLWFuZC1pbnRlcmVzdGVkLTIwMTktOD9jaWQ9c2VhcmNo/5d233c18f730436f2414784fBb16b100e" target="_blank" rel="noopener">partnered</a> with Goldman Sachs for its credit card venture last year, while ride-hailing giant Uber <a href="https://e.businessinsider.com/click/19748275.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" target="_blank" rel="noopener">inked</a> a deal with Holvi, a Finnish banking service provider for small- and medium-sized businesses (SMBs), to offer its drivers access to financial services. Going down the partnership route will likely help nonfinancial companies ensure they're offering appropriate services.Want to read more stories like this one? Here's how to get access:<ol><li>Business Insider Intelligence analyzes the fintech industry and provides in-depth analyst reports, proprietary forecasts, customizable charts, and more. &gt;&gt; <a href="https://www.businessinsider.com/intelligence/corporate-check?IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=learn_more_text&amp;itm_term=enterprise_text_link-flipkart-teams-up-with-aegon-for-life-insurance-offering-2020-3">Check if your company has BII Enterprise membership access.</a></li><li>Sign up for the Fintech Briefing, Business Insider Intelligence's expert email newsletter tailored for today's (and tomorrow's) decision-makers in the financial services industry, delivered to your inbox 6x a week. &gt;&gt; <a href="https://store.businessinsider.com/products/fintech-pro-membership?IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=learn_more_text&amp;itm_term=bundle_subscription_text_link-flipkart-teams-up-with-aegon-for-life-insurance-offering-2020-3">Get Started</a></li><li>Explore related topics in more depth. &gt;&gt; <a href="https://store.businessinsider.com/collections/fintech?IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=learn_more_text&amp;itm_term=enterprise_text_link-flipkart-teams-up-with-aegon-for-life-insurance-offering-2020-3">Visit Our Report Store</a></li><li>Current subscribers can log in to read the briefing <a href="https://intelligence.businessinsider.com/post/flipkart-teams-up-with-aegon-as-crypto-prices-dive-bakkt-raises-300m-amtd-digital-takes-controlling-stake-in-policypal-2020-3">here.</a></li></ol><a href="https://www.businessinsider.com/intelligence/10-up-and-coming-fintechs-2019?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_leadgen&amp;itm_content=finance&amp;itm_campaign=10-up-and-coming-fintechs-2019-2"></a>

Flipkart has teamed up with Aegon to offer life insurance to its customers

New Delhi, Dec 23 () Bharti AXA Life Insurance on Monday said its renewal premium income during April-September, 2019-20 rose 20 per cent to Rs 541 core.
The private sector insurer had collected a renewal premium of Rs 453 crore in the year-ago period, Bharti AXA Life said in a statement.
However, new business premium remained muted at Rs 415 crore as compared to Rs 398 crore in the first half of 2018-19.
As a result, the total premium rose 12 per cent to Rs 956 crore from Rs 851 crore in the first half of the previous year.
It recorded 30 per cent growth in its asset under management to Rs 6,404 crore as on September 30, 2019, against Rs 4,928 crore by the same period a year ago. 
The company is a joint venture between Bharti Enterprises and French insurance major AXA. It plans to expand its distribution footprint across the country in the current financial year.
The company recruited 7,167 agents in the half year ended September 30, 2019, to take advisor count to 41,722, up 9 per cent from the year-ago period, Bharti AXA Life Insurance Managing Director Vikas Seth said in a statement.
"Apart from focusing on building our agency and direct business, we are also keen to strengthen the bancassurance channel as we see it as a key distribution and growth opportunity. We are exploring multiple bancassurance options to achieve our long-term growth aspirations and increase India's insurance penetration," he said. DP ANU

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