Fintech decacorn PhonePe on Thursday (January 18) said it sold more than 90 Lakh insurance policies since foraying into the space in September 2021.
In a statement, the company said it sold 40 Lakh insurance policies in the past one year. It also said that it contributed more than 65% to the growth of two-wheeler digital insurance in India in the past two years.
Overall, PhonePe claimed to have facilitated more than 7.5 Cr vehicle insurance quotes and 40 Cr quotes across its overall insurance portfolio.
The fintech startup attributed the growth to its strategic partnerships with insurance players and tailor-made offerings for its customers.
“PhonePe’s innovative approach and customer-centric solutions have played a pivotal role in reshaping the landscape of the digital insurance space… What sets PhonePe apart is its strategic partnerships with industry leaders, bringing deep expertise to co-create tailor-made offerings for its expanding customer base,” said PhonePe Insurance chief executive officer (CEO) Vishal Gupta.
The development comes at a time when the Indian insurance space is witnessing rapid digitisation and the emergence of homegrown startups offering digital insurance products. Leveraging technology, insurtech platforms simplify processes, cut costs, and improve accessibility.
However, the Indian insurance market is highly underpenetrated. As per the Insurance Regulatory and Development Authority of India (IRDAI), insurance penetration in India rose to 4.2% in the financial year 2020-21 (FY21) from 3.76% in FY20.
Fintech majors such as PhonePe and Paytm leverage their existing user base to sell insurance products, while specialists such as Paisabazaar and PolicyBazaar have built a full-fledged marketplace to cater to customers looking for insurance products.
At the heart of all this lies the attractive Indian insurtech opportunity, which, as per Inc42, is projected to be the second fastest-growing sub-segment within the fintech sector by 2025. According to the data, insurtech will account for $339 Bn of the total addressable $1.3 Tn fintech market opportunity by 2025.
The space is also populated by players such as ENSUREDIT, Onsurity, Plum, Riskcovry, RenewBuy and Turtlemint.
The development comes at a time when PhonePe, flush with the $850 Mn it raised last year, is on an aggressive expansion spree as it seeks to become a leading fintech super app. The startup recently launched its credit marketplace while it has been expanding its financial services portfolio to include digital gold, mutual funds, stock broking and lending.
It has also forayed into adjacent tech-enabled verticals such as hyperlocal shopping through Pincode and app marketplace via Indus App Store to accelerate growth and create alternate source of revenue beyond digital payments.
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