There is no SME-focused end-to-end insurance buying platform in India: ICICI Lombard’s Sanjeev Mantri

Technology for MSMEs: Small businesses are the backbone of the Indian economy and business activities but to serve their business needs, there is not a single insurance platform that gives them the option of buying completely online — from insurance quote to policy issuance, according to ICICI Lombard General Insurance Executive Director Sanjeev Mantri. “Presently the market is catered by insurance distributors on the digital front but it is only for lead generation while the fulfillment is done offline,” Mantri told Financial Express Online as the company launched an online business insurance platform for SMEs.

SMEs will be able to buy or renew insurance products, endorse their insurance policies, register claims, opt for different insurance options such as marine insurance, workmen compensation, etc. on the new platform. The launch came amid the increasing need for small businesses to have the right risk management practices for being operating in a dynamic environment wherein crises like Covid can significantly impact their operations. ICICI Lombard’s business insurance portfolio includes insurance solutions covering property damage, transport of goods, legal liability, cybersecurity, employee-related risks across sectors, etc.

Also read: Expectations 2021: With Covid fallout in rearview mirror, fintech startups set to make up for 2020 losses

“We aim to become a single destination for business firms for all the business insurance needs with the new platform. While products existed earlier as well but distribution and complete buying through online mode are only launched by ICICI Lombard. The seamless buying experience with minimal data requirements and Instant policy issuance is the value proposition,” added Mantri. The company is looking to reach more than 6.33 crore MSMEs in India through the new platform. For SMEs, ICICI Lombard had earlier launched its automated bot platform, MyRA (My Remote Assistant) to get policy quotes via email and complete the transaction through the bot itself.

The general insurance or non-life insurance penetration in India at the end of FY2019 stood at 0.9 per cent, up from around 0.6 per cent in FY2009, according to Statista. India’s overall insurance market was expected to be worth $280 billion in 2020, according to the India Brand Equity Foundation (IBEF), with the overall insurance penetration (premiums as a percentage of GDP) in India reached 3.71 per cent in FY19 from 2.71 per cent in FY02. Moreover, the market share of private insurers in the non-life insurance segment increased from 15 per cent in FY04 to 56 per cent till April FY21. According to IBEF, there are 57 insurance firms in India including 24 in the life insurance market and 33 in the non-life insurance market.