Here are #5 Insurtech Startups who are Simplifying Insurance for India
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Insurance technology is blooming across the globe. In fact, according to a Fintech Global report, almost $8.5bn was raised by Insurtech companies globally between 2014 and 2018 and nearly 600 deals were recorded. The number of transactions topped at 151 in 2016 with over $1.4 billion raised by Insurtech companies. While last year, investments have nearly doubled from over $1.6bn in 2017 to $3.2bn in 2018.
While most of the deals were recorded in North American and European market, experts see great potential in the Asian market which is considered to be poor penetrated sector in the region.
Having said, India has also seen significant action in this space too. Presently, there are close to 150 insurtech startups in the country and the upcoming industry has raised close to $290 million last year.
The numbers clearly indicating insurtech startups are making enough noise to gain attention from the private equity community. However, apart from Policy Bazaar, there is no other unicorn in this space which clearly means the race is still one and here are few insurtech startups we need to watch out:
Found by Kamlesh Goyal in 2016, the startup claims to be one of the fastest growing digital insurers in the country. From buying insurance to settling the claims, almost every process on the startup platform is completed digitally.
Currently, the company focuses on mobile, motors and travel insurance.
Goyal believes that the only thing could increase the penetration of the insurance sector is through busting the complexity and simplifying the product and services around it.
“This one time, when I tried and failed to explain the basics of insurance to my teenage son, it was clear to me that we need to relook at the jargon-heavy industry and its complex operations and work on simple, customized solutions,” he said to Entrepreneur India.
As of date, Digit Insurance professes a 92 per cent claim settlement ratio for private cars own damage, 91 per cent for two-wheelers own damage and 97 per cent for mobile. On the travel front, its settlement ration is 99.5 per cent for domestic travel and 93 per cent for international travel.
Unlike other insurance companies, OneAssist offers products around electronic products, including mobile phones, wearables devices and home appliances along with cover for wallet and mobile wallets.
Simply put, the company aims to insurer several untouched segments.
The company is founded by fintech industry veterans Gagan Maini and Subrat Pani in 2011 and is backed by Sequoia Capital.
Acko General Insurance
Another major insurance startup to keep an eye on is Binny Bansal-backed Acko. The company was founded by Varun Dua, who managed to raise $30 million even before launching the startup.
The startup area of focus auto, travel, accident, gadgets and appliances insurance and it keen add health insurance and products across credit protection in their portfolio.
One of the reasons, why Acko should be closely watched is because they understand the pulse the Indian market and have offered innovative micro insurance products such as rider insurance, mobile and appliance protection, ticket cancellation etc.
They have also partnered with more than 15 players in the digital market place with companies like Ola, Amazon, redBus, Zomato and UrbanClap to sell their products.
Coverfox is a marketplace and IRDAI authorised insurance broking firm. The startup was launched by Varun Dua and Devendra Rane in 2014 and competes directly with the likes of PolicyBazaar.
A Hindu Businessline report cited Premanshu Singh, CEO, Coverfox saying that company is now looking to offer customized microinsurance product and is also likely to partner with insurance companies to co-create products in areas such as travel, cyber, pet and home insurance.
Reports suggest that Coverfox is keen to raise $ 50 million. Last year, the startup closed $22m in a Series C funding led by IFC, Transamerica and several existing investors, including- SAIF Partners, Accel and NR Narayana Murthy’s private investment arm Catamaran Ventures.
Apart from the other four, one cannot ignore Sequoia and Nexus-backed Turtlemint. The insurance aggregator was founded by Dhirendra Mahyavanshi and Anand Prabhudesai.
Instead of the only digital outlook, the startup focuses on omnichannel and the advisory model to sell insurance among masses.
In a previous interview with Entrepreneur India, Prabhudesai said insurtechs are trying to sell insurance online assuming that people will do self-service online. But ultimately, they end up having a call centre person talk as people are not able to do to that.
“So, essentially they are following a telecalling model whereas we are working on advisory-model in the neighbourhood. Insurance will be a mix of technology and human touch and that the premise of our business model,” he shared.
Between, the above the mentioned startups do let us know which one would be the next unicorn in the insurtech space!