ICICI Lombard, Actyv.ai partner to create insurance solutions for SMEs

General insurance company ICICI Lombard has partnered with SaaS startup Actyv.ai to create innovative insurance solutions for MSMEs to help them mitigate business risks and grow sustainably.

These insurance offerings are aimed at catering to the whole supply chain ecosystem of MSMEs including distributors, retailers, and suppliers, the companies said in a statement. 

“We aim to offer customised insurance products to the supply chain ecosystem that is an integral component of the MSME business,” said Sanjeev Mantri, Executive Director, ICICI Lombard. At the moment, ICICI Lombard provides digital solutions tailored to the specific needs of MSMEs, and this is an addition to that, said Mantri.

A report by the International Finance Corporation (IFC) and the Insurance Regulatory and Development Authority of India (IRDAI) highlights that the total addressable market for SME insurance in India is estimated to be in the range of Rs 1.5 trillion to Rs 1.8 trillion (about $21 billion to $25 billion).

ICICI Lombard will embed bite-sized insurance products onto its platform using Actyv.ai's technical capabilities, allowing smooth access to enterprises and small businesses.

“We are eager to leverage technology to enable relevant risk protection to the MSME segment,” said Raghu Subramanian, Founder and Global CEO, Actyv.ai. According to him, the combined offerings for enterprises and supply chain partners will ensure sustainable growth for all players in the supply chain ecosystem.

ICICI Lombard is the first in India to design a digital platform specifically for MSMEs to acquire risk coverage, the company claimed in a statement.

Bengaluru-based Actyv.ai introduced its platform in 2020 providing diverse solutions to corporates such as digital onboarding of distributors, managing inventory, invoices, financial transactions, etc. The startup has raised $12 million in its pre-Series A round, and is looking to raise its Series A.