Upstox, an Indian fintech platform backed by Ratan Tata, has ventured into the insurance distribution sector, marking the company’s expansion beyond its traditional stock and mutual fund offerings.
HDFC Life has become one of the first insurers to collaborate with Upstox, introducing its term insurance plans on the fintech platform.
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The company currently provides term life insurance options and is set to introduce health, motor and travel insurance products shortly.
In India, insurance penetration is relatively low at 4.2%, with many still relying on traditional, agent-driven methods for policy purchases.
Challenges such as a lack of awareness, an overwhelming number of options, extensive paperwork and complicated terminology further complicate the insurance buying process.
Upstox’s research has highlighted a common issue where consumers often settle for a one-size-fits-all term insurance plan without proper evaluation.
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By GlobalDataTo combat this and the widespread mis-selling of insurance products, Upstox aims to streamline the process for life, health, motor and travel insurance for its users using technology and industry expertise.
Upstox co-founder Kavitha Subramanian, as reported by the Financial Express, said: “We are thrilled to expand our offerings on Upstox and foray into the insurance distribution segment. We have recognised that navigating the insurance landscape is a daunting task. Customers are inundated with so many questions – which is the right plan, what should be the correct criteria to select a plan, how much insurance cover will be enough.”
HDFC Life deputy managing director Suresh Badami said: “We are pleased to announce our partnership with Upstox. This marks another stride towards realising India’s goal of ‘Insurance for All’ by 2047. We aim to utilise our distribution and digital capabilities to extend our insurance solutions to their entire customer base and enhance the value of this partnership.”
In other news from the Indian insurance industry, Tata AIG recently introduced a Satellite In-Orbit Third-Party Liability Insurance policy.
This offering, claimed to be a first for India, seeks to provide essential financial protection for satellite manufacturers and operators, catering to the needs of the nation’s burgeoning space sector.
