5 InsurTech startups disrupting the premium financing sector

By Leandra Monteiro

While the Covid-19 pandemic caused havoc across industries the demand for insurance products has increased. Therefore, the increase in sales of insurance led to a rise in the demand for premium financing since consumers purchased insurance because of the rising awareness. But, to pay the premium amount, consumers adopted premium financing, which actually led to a growth of the market. Thus, COVID-19 positively impacted the premium finance market forecast.

India is the fifth largest life insurance market in the world’s emerging insurance markets, growing at a rate of 32-34% each year.

However, the loan application process and risk of default in premium payment are expected to hamper the market growth. Contrarily, the rise in the adoption of internet-of-things and the usage of artificial intelligence (AI) insurance platforms can be seen as an opportunity for the market.

So looking at the importance of tech-connected insurance, here are 5 InsurTech startups causing a disruption in the premium financing sector without any manual intervention:

• Bima Pay

Bima Pay (BimaPay Finsure Private Limited), is a lending service provider that facilitates personal loans for the purpose of insurance premium payments through its partner lenders. Its aim is to help its customers have easy access to their insurance by providing them flexible payment options for insurance premiums. The entire process is done without any manual intervention.

• Finsall

Finsall has pioneered India’s insurance premium financing industry. It aims to encourage the purchase of insurance policies by those who cannot pay premiums upfront and a require installment facility. The InsurTech has tied up with lenders which provide loans to such customers. On the other hand, it has partnered with insurance companies in order to make financing of premiums a seamless experience for customers.

• Digit Insurance

Digit Insurance is one of India’s leading digital full-stack insurance companies. Digit Insurance is a startup that is reimagining products, and redesigning processes. It goes back to the basics and helps to build simple and transparent insurance solutions, that matter to people. It leverages modern technology to simplify insurance.

• Acko

Acko, started in 2016, entered as India’s first digital insurer, and is currently the fastest-growing insurance company in the country. In a span of three years, it has revved up insurance with technology and given it a snazzy makeover. It has taken insurance online, wiped out much of the paperwork associated with it, and created products that are a cut above the rest.

• Policy Bazaar

Founded back in 2008, with one objective: bringing transparency in insurance, Policy Bazaar today is among India’s best online insurance marketplace. Policybazaar.com has built strong relationships with all prominent public and private insurance companies across India. The company is specialized in making comparative analysis of insurance products. The basis for the comparison is price, quality, and key benefits. Its partners are from life insurance, health insurance, car insurance, travel insurance, corporate insurance, and loan sectors.