Digit Insurance, India's first digital insurance provider, currently offers cover for cars, travelling, homes and mobile phones - but it's entering the health insurance market after a company-led research project revealed a gap in the market for its services
Digit Insurance, India’s first digital insurance provider, will launch a fully digitised health insurance service – as it aims to provide cover to young people who may not understand why then need it.
The company’s business strategy is led by former Allianz chief Kamesh Goyal and already has products in motor, travel, home and mobile lines.
Digit Insurance’s head of marketing Vivek Chaturvedi told Compelo its health insurance service will launch in the next three or four months.
Why Digit Insurance is launching digital health insurance in India
The opportunities in this sector were revealed by a qualitative research venture conducted by the company’s Brighter Side Project.
The project involved interviewing several people across various stages of their lives to gain insight into the reasons they don’t take out health insurance.
Mr Chaturvedi said: “We met people across different life stages, genders and health conditions.
“Some of the insights we got were that people had a lot of optimism when it comes to their future health.
“The only time when they probably fear for their health or any unfortunate situations related to it is when they hear someone from their friends or family suffer, both health-wise and financially.
“Also, people who were younger largely feel they would require health insurance only when they get older.
“In short, the relevance of health insurance is low among the healthy people, who are actually those who should start thinking about insurance in the right time to reap its benefits later.”
The attitudes gleaned from the Brighter Side Project revealed to Digit Insurance a gap in the current Indian health cover market related to there being “little scope for customisation based on individual requirements,” according to Mr Chaturvedi.
He added: “We think this is an opportunity for future products.”
Opportunity to disrupt health insurance through digital
Digit Insurance sees the opportunity to add value to the health insurance market through applying its digital platform, which recently brought on board its two millionth customer.
A report from the National Institute of Public Finance and Policy, a research body under the Indian government’s Ministry of Finance, found that private health insurance companies overcharge customers, and the current regulatory framework is too weak for them to seek redress.
The report states the health insurance industry is “plagued with the highest number of consumer complaints in the insurance sector” and that private health insurers “appear to be selling inferior quality products to its consumers”.
Mr Chaturvedi believes Digit Insurance’s platform can help customers purchase competitively-priced cover, as well as products that fit their individual circumstances.
He added: “A digital insurance business model can help the customer stay aware, as there is greater transparency.
“People know exactly what they are buying and they can also easily compare different offerings from other companies as well.
“It also offers the ability to customise policies more effectively.
“Even from a recommendation point of view, consumer data analytics allow a digital insurer to offer more relevant products to the customer.
“But we feel the biggest advantage is from a service point of view. Digitisation allows smoother and simpler processes backed by technology, especially during claims.”