How did PhonePe enter the Indian Insurance Sector?

November 15, 2024

Registrationwala

PhonePe is a well-known Indian digital payments platform with over 550 million registered users. The platform offers a wide range of services, including mutual funds, equities, insurance products, etc.

Just a few years back, PhonePe had entered the insurance space with a corporate agency license, before acquiring a full-fledged IRDAI insurance broker license. Currently, the digital payments platform distributes various life, health, motor and car insurance policies in collaboration with various partners and lets its users pay in monthly subscriptions using UPI.

PhonePe’s Journey in Indian Insurance Sector

PhonePe was originally established as a digital payments platform about 9 years ago in 2015. However, it decided to enter the insurance sector in 2020 with a vision to expand its services and become a one-stop financial platform for its Indian users.

When the business first entered the insurance market with a corporate agency license, it distributed insurance products from third-party providers. This marked PhonePe's first step towards becoming a distributor of digital insurance. The business received positive feedback and witnessed rapid growth and customer interest.

After seeing the potential of the insurance space, PhonePe decided to obtain an insurance broker license in 2021 and began offering a wider range of insurance products such as customized insurance products related to life, health, motor and travel.

This license also enabled the company to offer more tailored recommendations related to insurance to its users, allowing it to serve the various customer needs and increase accessibility to insurance of millions of users, especially those belonging to Tier 2 and Tier 3 cities.

According to Business Standard, ever since PhonePe started offering insurance, it has sold over 9 million insurance policies. Out of them, 4 million policies were sold in the last year alone.

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Various Insurance Policies Provided by PhonePe

Walmart-owned Digital Payments platform PhonePe offers a wide range of insurance products to meet the various needs. It offers a range of policies which are designed to meet various needs, including motor, health, life, and travel insurance. All these policies are provided by the platform in collaboration with different insurance companies in India like Ageas Federal Life Insurance and Acko.

Let’s discuss in detail each type of insurance provided by PhonePe:

Motor Insurance

PhonePe Motor insurance is meant for cars and two-wheelers and includes third-party and comprehensive cover options. Users who opt for third-party insurance through the platform get coverage for damages or injuries caused to third parties. Comprehensive plans, on the other hand, provide more extensive coverage as it includes protection against natural disasters, accidents and robbery.

The documentation required is minimal and the policies are issued on an instant basis. Additionally, the platform provides add-ons like engine protection and zero depreciation which can enhance the coverage.

Health Insurance

Health insurance policies on PhonePe provide coverage for hospitalization expenses, pre and post-hospitalization expenses, COVID-19 treatments, ambulance costs, OPD costs as well as expenses such as ICU charges.

Users can quickly compare plans before selecting coverage that best meets their needs.

Life Insurance

PhonePe provides affordable term life insurance policies designed to offer financial security to policyholders' beneficiaries should an untimely death occur. Users can access competitive rates as well as tax breaks under Section 80C of the Income Tax Act. The insurance plans are issued quickly with minimal paperwork.

Users can select the insurance coverage based on their financial goals, such as securing the needs of their family or covering the liabilities like child’s education, marriage, etc.

Travel Insurance

PhonePe offers insurance options for both domestic and international travel. Trip cancellation, loss of baggage, medical emergencies, and personal accident coverage are some benefits offered by travel insurance. The policies also include coverage related to Covid-19 and compensate for expenses incurred because of hospitalization or trip delays due to the pandemic.

That’s not all. Customers can avail unique add-ons for their travel insurance policies like burglary coverage for the policyholder’s residence while he is traveling to another state or country. By purchasing PhonePe’s travel insurance policy, the policyholders can travel with a peace of mind.

Why Insure with PhonePe?

Insurance policies offered by PhonePe are convenient, simple and affordable. The platform has a user-friendly interface and allows users to quickly compare different policies, and purchase them without the requirement of an agent. The transactions that take place on PhonePe are secure and makes the insurance-purchasing process free of any hassle.

Each insurance policy offered by PhonePe has been designed keeping in mind the accessibility and cost-effectiveness for users across India in order to meet the growing need for digital insurance solutions.

Here are some benefits of getting insured with PhonePe:

PhonePe platform allows you to browse through a wide range of insurance plans and compare them so you can find the most suitable plan for yourself and get maximum protection.
Getting insurance through PhonePe requires just a few clicks. Individuals can get covered instantly using this platform.
All the insurance purchase details of PhonePe users are stored in a secure manner and the users can access the insurance documents on the platform from anywhere at any time.
When getting insurance through PhonePe, you do not have to worry about security threats as the platform is completely encrypted and safe.

Conclusion

PhonePe began as a digital payments platform in 2015. But in 2020, it decided to enter the insurance market, allowing it to offer a wider range of products. PhonePe platform provides policies related to life insurance, motor insurance, health insurance and travel insurance. Users can easily buy insurance policies from this platform because of its user-friendly interface.

If you want to serve as an insurance broker in India, obtaining an Insurance Broker License from IRDAI is mandatory. For assistance in obtaining this license from IRDAI, connect with Registrationwala.