PhonePe announced that it has helped drive over 65% growth in two-wheeler digital insurance in India over the last two years. In a sign of the transformation of the Indian insurance business and growing consumer trust, there has been a significant increase in the use of internet channels to purchase insurance. In addition, the company has handled approximately 75 million auto insurance quotations and 400 million insurance quotes in total.
PhonePe began offering insurance on its platform in September 2021, and has since sold over 9 million policies, including over 4 million in the last year alone. PhonePe is driving much of the growth in the digital insurance sector, which is expanding at a 24% CAGR.
After disrupting the market with vehicle insurance products, PhonePe recently launched a new monthly premium plan for health insurance, a first-of-its-kind effort in the sector. This decision is motivated by two key insights: the convenience of monthly payments, which extends beyond credit card and EMI customers to include everyone. This shift away from lump-sum payments involves actual monthly payouts, which reduces the financial load for our subscribers. It also allows our users to choose more comprehensive insurance coverage due to increased affordability while maintaining savings. In addition, the transparency in picking appropriate coverage is reflected in the Average Transaction Size (ATS), with an increasing proportion of consumers opting for comprehensive protection.
Commenting on the milestone Vishal Gupta, CEO of PhonePe Insurance said,’ PhonePe’s innovative approach and customer-centric solutions have played a pivotal role in reshaping the landscape of the digital insurance space. True to its ethos of positive disruption, PhonePe is revolutionizing the insurance buying experience in India. Our monthly premium plan for health insurance is another step in our commitment to providing innovative, customer-friendly solutions that truly address the needs of the modern Indian consumer. 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. These partnerships not only reflect the industry’s trust in PhonePe but also underline the efforts it has made in enhancing and simplifying customer journeys.’’
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