Edelweiss Tokio Life Insurance has partnered Mobikwik to sell ‘miniature’ group insurance plans to Mobikwik’s customers. Edelweiss Tokio Life Insurance will be offering insurance plans of Rs.One lakh, Rs.Three lakh, and Rs. Five lakh through Mobikwik's application and their website. The premium offered on these insurance plans will be of Rs.148, Rs.443, and Rs.738 per annum.
Edelweiss’s offerings will be the pre-approved sum assured based customer information that is already with Mobikwik. Sumit Rai, MD, and CEO of Edelweiss Tokio Life insurance commented that expanding use of smartphones combined with affordable internet has enabled Mobikwik to improve the access of insurance products. He finished up by saying that this step will help them modify the buying process of insurance policies and in the process provide customers with more services, all in one click.
Mr. Rai has also said that they are looking to expand the ‘miniature’ insurance plans to more long term savings products. Edelweiss is relying on the KYC system on the app and other services to offer and service the policies directly to the apps. This will cut down on the time that is wasted on face-to-face interaction between the customer and insurance provider.
Mr. Rai is aiming this whole effort towards youngsters and wants to get them interested in getting life insurance. He thinks that important financial matters should be taught to people at a young age so that they stay with companies for the long term. With this partnership, Edelweiss will be able to reach a large number of customers across multiple income slabs.
The company has been taking steps in preparation for this partnership. In the last financial year, Edelweiss has completed a digital overhaul with its Project Transcend. The project was introduced to help in scalability and create a more flexible platform to assist the increasing volume of customers more smoothly.
Edelweiss Tokio Life Insurance has also been using data analytics to better manage customer interaction more smoothly and take proper steps to counteract risk and fraudulent activities. The company has taken many steps to crack down on fraudulent activities more strictly.
Upasana Taku, Co-Founder of Mobikwik, has said that today’s generation wants sachet-size insurance services accessible on their mobile phones. They want these insurance plans to be affordable, simple and not too complicated while also making sure it is easy to buy. This is why Mobikwik tied up with Edelweiss Tokio Life Insurance to enable India to afford insurance. Currently, the insurance industry’s penetration in India is at 3.7 percent of the GDP, but there is more potential yet to tap. The spread of the Internet and smartphones will help in this regard. This is a large market for digital insurance which has till now being overlooked by the banks, distributors and other life insurance providers.
Mr. Rai has also commented on the wants and desires of today’s youngsters. They want flexibility and hence, have the option to increase or decrease it as and when they want. Mobikwik is trying to reach such customers. People in this category who are also looking for a more long term solution will be benefited from this move. Mobikwik is also contemplating to customize its offerings in the future. In the days to come, there will be larger individual covers on offer.
The target age group of this partnership is 18 to 45 years, specifically those people who are more active on their mobile phones and are tech-savvy. These types of people do not rely on the more traditional routes of getting insurances. Rai is eyeing for over 10 percent of their overall sales to come from their online channel in the coming three years. Currently, this figure is at 3% to 4%.
The mobile devices industry has seen a huge boost in recent years. With the introduction of Chinese mobile makes more and more people are finding it affordable to buy a quality Smartphone.
Also, since the demonetization act of 2016, more and more people are relying on e-wallets rather than having cash all the time with them. The general public now relies on and trusts the financial services available to them over the internet. Edelweiss’s joint venture with Mobikwik is a step in the right direction. Simplifying and making insurance easy to access and will encourage more people to get insurance. Knowledge of financial products and services is especially important for the younger generation who grew up on mobile phones. Better financial habits need to be inculcated in them, which is what both companies aim to achieve with their partnership. It will be interesting to see wh becomes of their joint venture in the future.