Riskcovry
A Full Stack Insurance
Distribution Platform
The Challenge
India has a notably low level of insurance penetration, with only 3.7% compared to the global average of 7.2%. The majority of people in India still lack access to even basic insurance coverage, leading them to depend on loans to handle risks such as crop failure, accidents, property damage, and medical emergencies that could otherwise be covered by insurance.
The complexity and impersonal nature of insurance products and customer experiences, along with the high cost and scalability issues of traditional distribution channels, are significant factors contributing to India's inadequate insurance penetration.
Around 80% of retail insurance in India is distributed through traditional push-based channels involving intermediaries like agents and brokers. Customers often struggle with understanding insurance products, determining their insurance needs, and maintaining a low level of trust in insurance providers and intermediaries.
Market
The Indian Insurance market is expected to reach $200 BN by 2027. The country is 9th largest Life Insurance Market and also 14th largest Non-Life Insurance market globally.
Insurance density in India has increased from $ 11.1 in 2001 to $ 91 in 2021 (Life insurance- $ 69, non-life insurance – $ 22) India has is gradually witnessing a steady increase in insurance penetration (from 2.7% in 2000 to 4.2% in 2021). The insurance penetration in the life insurance sector was 3.2% in 2021 -twice more than emerging markets and slightly above the global average.
In FY 22, the gross direct premium of non-life insurers and life insurers witnessed a YoY growth of 10.8% and 10.2%, respectively. In FY23, the New Business Premium of the life insurance industry grew at 17.91% with private insurers accounting for 37% of the NBP of ~$45 bn
The Solution
Introducing a white-labelled API-enabled insurance integration platform, powered by Riskcovry, which allows customers to secure insurance coverage conveniently from their digital devices with just a few clicks. This eliminates the need to search elsewhere or make separate purchases.
By developing a comprehensive digital infrastructure for insurance, the platform enables businesses across various sectors, including business correspondents, lenders, agri-businesses, and content platforms, to effortlessly offer their customers a wide range of insurance products. These products can be both standardized and tailored to meet specific requirements. Riskcovry aims to bring customer-centric insurance products to mass markets and takes this approach to the next level by providing an end-to-end digital insurance solution. Additionally, the platform offers users a cohesive package of services, including customized insurance plans that are designed to align with their individual needs.
IIFL’s Impact
Our relationship with IIFL goes back many years. In a world where capital is increasingly commoditized, it is rare to find a partner like IIFL that goes the extra mile in not just equipping us with best practices as it relates to financial services but more pragmatically also opens doors to tap into their vast distribution network. It is a privilege for us to partner with the group given their depth and expertise in the financial services space. The recent funding event greatly contributed to paving the way for us to accelerate our journey in building a critical mass of products, modules and use cases that our platform can power, thereby inching forward to our goal of increasing insurance penetration in the country”.
- Chiranth Patel, Co Founder, Riskovry
