Private life insurer Edelweiss Tokio Life Insurance has partnered with payments platform Mobikwik to sell 'miniature' insurance plans. In an interaction with Moneycontrol, Sumit Rai, MD & CEO, Edelweiss Tokio Life Insurance said this gives them an opportunity to reach a wider customer base.
There will be life insurance covers of Rs 1 lakh, 3 lakh and 5 lakh with a premium of Rs 148, 443 and 738 per annum. This will be a group insurance solution in the term segment.
Here, the life insurer will offer pre-approved sum assured basis customer information already with MobiKwik. The insurer will offer miniaturised products and Rai said they will look to expand this to products catering across long-term savings products.
"Riding on the MobiKwik app ecosystem KYC and other capabilities, we can issue and service the policy directly within in the app ecosystem, instead of the customer engaging with two separate entities," added Rai.
He added that the idea is to democratise insurance by offering a compelling product proposition digitally, to a newer and digitally savvy customer segment.
Rai said this partnership will allow Edelweiss Tokio Life to cater to customers across all income groups and offer relevant solutions.
The life insurer has already taken steps to go digital. Internally, in the last financial year, Rai said that the company e completed a digital overhaul within Edelweiss Tokio Life called Project Transcend, to help in scalability and create a flexible platform to cater to increasing volumes smoothly.
"We are using data analytics in a big way to manage customer interaction more efficiently and take proactive steps in curbing risks, including fraudulent activities. Over the last year, we have been focused on creating pre-emptive processes that can flag off any fraudulent behaviour," he added.
Overall, while the ticket sizes in digital insurance are currently low, Rai said they expect them to increase over a period of time. In FY19, Edelweiss Tokio Life collected new business premium of Rs 455.63 crore, showing a year-on-year jump of 33 percent.