Insurers that have done so will reach a bigger client base with less cost.
The partnerships between Indian insurers and paytechs will widen insurance distribution in the country as such partnerships will help identify new distribution channels and spur sales, a GlobalData report said.
Insurers that have collaborated with paytechs are likely to reach a large customer base faster and with less cost, analyst Ayushi Tandon said.
“The strategy can work well as the use of payment platforms has dramatically increased in the country over the recent past, especially after the demonetization and during the COVID-19 pandemic,” Tandon added.
Such insurers include ICICI Prudential, which partnered with PhonePe in January 2021 to sell term life insurance plans through the PhonePe app with zero paperwork and without the need to go through traditional health check-ups.
Bharti AXA has also tied up with Airtel Payments to offer pandemic-related health insurance plans. And Reliance General Insurance collaborated with Paytm to launch its COVID-19 benefit insurance policy.
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