MobiKwik launches digital insurance, targets 1.5 million policies by end of this fiscal
Gurugram-based financial services startup MobiKwik on Wednesday announced that it will be providing digital insurance to users on the app.
This is the third big launch in the financial services domain by MobiKwik this year, after the launch of ultra-short instant loan offering in partnership with Bajaj Finserv, and the launch of the digital gold category in October.
With digital insurance, MobiKwik has launched sachet sized products that will cater to a mass customer base across the country. The product will allow users to buy insurance of Rs 1 lakh for as low as Rs 20, for a period of one year.
MobiKwik users will now be able to choose and purchase from a range of life insurance and general insurance products. The user will be suggested the right insurance product, selected basis self-profiling of customer, advanced data analytics and artificial intelligence algorithm.
In the first phase, MobiKwik has rolled out accidental insurance for the users. It will also be partnering with leading insurance companies to offer an extensive range of products to its users. Buying insurance will be a paperless, two-step process and issuance of the policy will be instant. Users can purchase insurance either through the app or the MobiKwik website.
Commenting on the launch, Upasana Taku, Co-founder and Director, MobiKwik said,
“The insurance penetration in India is close to 3 percent of the GDP and there is a huge potential ready to be tapped, more so with the exponential increase in the adoption of smartphones and penetration of the internet. This presents a vast opportunity for digital insurance to the mass market, which has been ignored by banks, distributors and even online companies in web comparison owing to either high distribution cost or low penetration of computers in the country.”
Upasana also added that MobiKwik plans to cater to over 150 million mass and emerging affluent customers through its product range. At the same time, the company is looking to sell 1.5 million policies by the end of this fiscal year.
“Our differentiated product offering will be bundled in the customer journey. We understand that complexity of the product, high premiums and standardised products irrespective of customer profile or needs are key deterrents to the adoption of insurance and hence, we will be co-creating products that offer high-value coverage at low premium,” added Upasana.
In October, MobiKwik launched the buying and selling of digital gold, in partnership with SafeGold.
As part of the second phase, it also announced that its customers could convert their digital gold to gold jewellery from CaratLane, both online and at any of their stores in India.
Recently, MobiKwik also declared its entry into the wealth management business with a 100 percent acquisition of Clearfunds, a leading online wealth management platform based out of Mumbai.
MobiKwik will be investing $15 million over the next one year to scale up its wealth management business.