The covid-19 outbreak has brought several challenges for industries across the globe. The deadly virus has affected not only the healthcare sector but every industry that has faced a paradigm shift in its operations. Micro, Small and Medium Enterprises (MSME) sector is one such segment that is facing a major blow due to the pandemic. To understand the adversities faced by the segment, Elets News Network (ENN) spoke to Vivek Chaturvedi, Chief Marketing Officer, Digit Insurance. During the exclusive with us, Vivek spoke to us about the challenges faced by the Small and medium-sized shop keepers and retailers and how is Digit Insurance helping them cope with the roadblock with their offering-‘shop insurance’.
1. How has the COVID outbreak affected the Small and medium-sized shop keepers and retailers? What challenges are they primarily facing?
Small and medium enterprises have seen an impact of 20 to 50 percent in earnings. The challenges have mainly been due to lower demands, crisis in labour, liquidity crunch, the unpreparedness of the pandemic, stricter safety and hygiene protocols leading to increased production cost to name a few.
2. How is Digit trying to help the SME sector? Would you like to tell us about your offering ‘shop insurance’?
Digit is building more awareness for SME insurances through relevant products like shop, property, and fire insurance to protect small and medium businesses from unforeseen financial losses. Digit’s shop insurance for businesses covers both their contents and structure. The insurance provides coverage for shops of different sizes and the product currently offers covers under three main categories:
– Contents only,
– Building only
– Building, content and cash cover
Digit Insurance’s shop insurance offers a plan for every type and size of the business, for both renters and landlords of commercial properties offering the option of customising the sum insured based on the nature and requirement of the business.
3. How significant is the implementation of a digital delivery system across the SME sector? How does digit help the segment in raising their digital awareness?
The SME sector is also gradually moving towards digital transformation, however, a major chunk is still operating through traditional modes. Hence, we are present both through direct channels as well as agent channels. We are also guiding and helping SME sectors in terms of issuance and claims to ensure that we enhancing digital adoption.
4. What conveniences can your Do-It-Yourself (DIY) advisory tool called SME Buddy offer to the segment?
SME Buddy is an online Do-it-yourself advisory tool, to help SMEs and start-ups calculate the coverage required for their businesses, called SME Buddy. This is part of Digit’s initiative to make insurance simpler and relevant to the smaller businesses that are more susceptible to risks, especially with the ongoing pandemic.
Also Read:- Online Purchase Model is the Future of Insurance Industry: Vijay Kumar, Digit Insurance
SME owners and start-up founders can enter their details, like the industry they are in, the kind of assets they hold, and the resources they have in the tool. Based on this, the tool provides suggestions on the kind of insurance coverage that they should avail. SMEs are exposed to higher risks of different kinds. Choosing the right insurance solution can help to protect them from unprecedented losses.
It will give small businesses an idea of what type of insurance covers will be helpful for them and will protect them from eventualities.
5. How are you planning 2021 with regards to the SME sector?
We plan to launch more relevant products for the SME sector. We also plan to raise more awareness about SME insurances so that we can offer financial protection to more enterprises with such tools like SME Buddy.
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, Vivek Chaturvedi, Chief Marketing Officer, Digit Insurance spoke about the challenges faced by the Small and medium-sized shop keepers and retailers and how is Digit Insurance helping them cope with the roadblock with their offering-'shop insurance’.){kind=link}