 "PhonePe")
Walmart-owned fintech firm PhonePe said that it has contributed to over 65 per cent growth for two-wheeler digital insurance in India over the last two years.
In a shift indicative of the evolution of the Indian insurance industry and growing consumer trust, there has been a notable surge in the adoption of digital channels for purchasing insurance. The Bengaluru-based company has also facilitated over 75 million vehicle insurance quotes and 400 million quotes across insurance products.
PhonePe started offering insurance on its platform in September 2021, and since then has sold over 9 million overall policies, with over 4 million being sold in the last year alone. The digital insurance market is growing at a compound annual growth rate (CAGR) of 24 per cent, with a large part of this growth coming from PhonePe.
“PhonePe’s customer-centric solutions have played a pivotal role in reshaping the landscape of the digital insurance space,” said Vishal Gupta, Chief Executive Officer of PhonePe Insurance. “Our monthly premium plan for health insurance is another step in our commitment to providing innovative, customer-friendly solutions that truly address the needs of the modern Indian consumer. What sets PhonePe apart is its strategic partnerships with industry leaders, bringing deep expertise to co-create tailor-made offerings for its expanding customer base.”
After tapping the market with motor insurance products, PhonePe recently introduced a unique monthly premium plan for health insurance. This move is driven by critical insights such as the convenience of monthly payments, extending beyond credit card and equated monthly instalment (EMI) users to encompass everyone. This departure from lump-sum payments involves actual monthly payouts, thereby easing the financial burden for our users. PhonePe said this also empowers our users to opt for more extensive insurance coverage, due to enhanced affordability, without compromising on savings. Also, the transparency in selecting the appropriate coverage is reflected in the Average Transaction Size (ATS), with an increasing number of users opting for comprehensive protection.
India’s insurance sector is projected to record the fastest growth among the G20 countries, with the total premium expected to rise at an average rate of 7.1 per cent in real terms during 2024-28. In comparison, the growth rate for the global insurance market will be around 2.4 per cent, said a report by Swiss Re Institute. The expanding economy, growing middle class, innovation, and regulatory support are driving the insurance market growth in India.
Another report by the US-based International Trade Administration (ITA) said India's insurance industry is rapidly growing, with an expected market size of $280 billion by 2025, a compound annual growth rate of 12 per cent-15 per cent, primarily attributable to rising awareness about the importance of insurance and increasing disposable incomes. "The Indian government has implemented various policies to promote growth and innovation in the insurance sector," according to ITA.
