The insurance industry in India, which has a population of over 140 crores, is still in its nascent stage. In spite of its growing population, the market for its insurance accounts for only 1.5% of the world's total.
Over 70% of its population resides in rural areas which makes it challenging for conventional insurance providers to tap the market. As a result, a majority of people remain unaware of utilizing insurance coverage as risk management for their lifetime. To boost financial insurance penetration in urban and rural markets, a plethora of insurtech startups are trying to innovate solutions that can provide financial security to the Indian populace.
After enduring the adverse impact of the COVID-19 pandemic, building financial capacity for the underserved has become extremely crucial. Unexpected events that can push a family into a poverty trap require to insure vulnerable households with low domestic savings and inadequate social security. To boost the reach of insurance in every household, Bimaplan has undertaken the initiative to provide insurance coverage to the currently underserved population at affordable prices.
Commenting on the use of technology, Vikul Goyal, Founder & CEO of Bimaplan said, “Insurance penetration is a process of easy access and simplified usage. Even though technology has disrupted the traditional value chain, segments such as health, crop protection, consumer durables, etc. are still underpenetrated. By leveraging the use of technology, the insurance sector can personalise the products to meet the dynamic needs of customers based on different demographics and individual behaviour.”
The business idea
The tech-led insurance platform offers customized, highly affordable and relevant insurance plans to the rural and low-income population. It helps insurance companies adopt agile business and distribution models through its API-driven platform to capitalize on newer distribution and revenue streams. Its end-to-end API-driven insurance solution digitizes the conventional insurance distribution while helping companies to issue policies and transfer premiums faster than conventional channels. Bimaplan's embedded insurance platform, UNO, simplifies integration and helps our partners launch insurance products for their customers.
The insurance platform successfully develops customized insurance products and makes them accessible to the across geographies and segments. It collaborates with insurance companies and integrates API to make the accessibility of products seamless via customers’ smartphones. The dynamic connections of APIs have the potential to offer a far greater degree of personalization to the customers with a quick turnaround time.
Technology as a key enabler
To improve insurance penetration in India, it is significant to keep technology penetration ahead of insurance penetration. Bimaplan integrates technology to analyse the behaviour and preferences of customers and curate products tailored to their needs. In addition, the adoption of digital models also enhances the accessibility of insurance products for people belonging to different income groups.
The business journey so far
Bimaplan has a strong founding team with a successful track record of building scalable products. It is backed by globally renowned early-stage technology investors including Y-Combinator, global venture capital funds, and prolific angel investors. Incepted in 2020, the insurtech startup secured a seed funding of $500k in march 2021 and raised a total of $3 Million to date.
Bimaplan co-creates relevant plans with insurance companies for the end consumers. It associates with B2B partners such as NBFCs, MFI, fintech, gig platforms, SMEs, and digital startups to provide relevant products to the end customer.
In a short time period, the insurtech startup has introduced an extensive range of innovative products. Recently it has also partnered with intercity travel startup, Zingbus to offer real-time travel insurance as an add-on benefit to its users.