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.

Per capita 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 FY22, 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.

The Challenge

• 
  Banks are converting less than

  50%

  of the leads
• 
  Poor Contract enforcement & Commercial dispute resolution. India ranks at the 163rd position globally
• 
  It takes an average of

  1,445 days

  to resolve a commercial dispute in India
• 
  Average claim value is only

  31%
• 
  India ranks at a poor 68th spot in “trading across the border”
• 
  49%

  of businesses have encountered frauds in their lifetime
• 
  Every fraudulent transaction causes an avg.

  3.4X

  in total realised losses including arbitration etc.
• 
  Regulators in India are ensuring key industries like lending, fund raising, payment aggregators, real estate, insurance, e-commerce etc. are using escrows
• 
  680%

  increase in payments fraud between 2013 to 2018
• 
  Around

  $17 Billion

  Lost in the last 12 months due to Fraud