New Delhi: MobiKwik, India’s largest digital financial services platform, today announced the launch of digital life insurance on its app to its users. MobiKwik in association with ICICI Prudential Life Insurance Company has rolled out first-of-its-kind group micro insurance product.
The offering begins with a life cover of Rs 1 lakh available for a monthly premium as low as Rs 20 per month. This is the second big announcement by MobiKwik in the digital insurance space, post the launch of accidental insurance in November 2018. The users have an option to choose from three sums assured policies: Rs 1 lakh, 1.5 lakhs and 2 lakhs, available against monthly premiums of Rs 20/-, 30 per month and 40 per month respectively. Life insurance can be digitally purchased on the MobiKwik app, via a paperless, 2-step process that takes 10 seconds and the policy is issued instantly.
MobiKwik will be extending its base of insurance providers in this category and is exploring associations with other leading insurance providers. Mobikwik will be adding curated products based on customer profile and will offer personalised products rather than ‘one size fits all’.
“Over the past 9 years, Mobikwik has designed products that are aimed at transforming the financial landscape and driving financial inclusion in India. Our foray into the life insurance category is in line with our vision to bring about an impactful change in the way financial services are distributed in India. The market is huge and expected to grow rapidly. As per a recent report by ASSOCHAM released in partnership with a research firm called APAS, the insurance industry in India is expected to reach USD 280 billion by 2020. The report also states that the life insurance industry in the country is expected to grow by 12-15 per cent annually for the next three to five years. Our innovative, curated offerings in the insurance domain aim to simplify the process of buying insurance and also make it affordable to a totally untapped set of customers”, said Upasana Taku, Co-founder and Director, MobiKwik on the launch.
“Life insurance is very important for each and every individual. However, in India, it is an extremely under-penetrated category. With these micro insurance products and other personalised offerings in the future, we are confident of disrupting the life insurance market. We are digitally offering life insurance in association with ICICI Prudential Life Insurance, one of the renowned names in this domain. We intend to tap the mass market and an emerging affluent customer base that has been ignored by the traditional banks and insurance providers, owing to the high distribution costs. We are also trying to address the challenges around product relevance for the customer, because of standard financial and health underwriting. MobiKwik will lead the way in driving adoption of life insurance products in real India with its customized portfolio, intelligently designed to cater to the customers’ requirements. Digital offering is the key here as we are able to offer insurance products to millions of our users, irrespective of location, on our app. We envision a day when the majority of India will have a life insurance policy”, added Taku.
“We are delighted to have associated with MobiKwik, one of India’s largest digital mobile wallet. The simple paperless onboarding process paves the way for MobiKwik’s large user base to purchase life insurance. Simplicity, we believe is the biggest innovation in the life insurance industry. Customer centricity is the core philosophy of both organisations and we look forward to a long and mutually beneficial relationship”, said Puneet Nanda, Deputy Managing Director, ICICI Prudential Life Insurance Company.
The Mobikwik user is suggested an appropriate insurance product, selected basis existing profile of the customer, advanced data analytics and artificial intelligence algorithm. The company had recently launched the accidental insurance product which has received a great response from its user base. It offers accidental insurance of Rs 1 lakh for a year for as low as Rs 20 per month.