Zopper democratising access to insurance in India with the help of technology

The InsurTech sector in India holds a significant share of the Indian FinTech market, according to a PWC report. In the coming times, usage of AI modules in claims settlement and independence from long documentation is going to shape the Insurtech space in a dynamic market like India. The prevalence of embedded insurance will witness an uptake amongst the generation Z and millennials as these types of insurance products typically cover the very specific needs of customers and are valid for a short term. 

As an embedded insurtech startup, Zopper has successfully built its application programming interface (API) platform, which enables both the parties to collaborate and come out with innovative insurance policies, which are appealing to the customers. Bhushan Sheth - Chief Risk Officer (CRO) Zopper, share more insights on the InsurTech sector in India and how Zopper is contributing to it - 

What is embedded insurance (insurance-as-a-service) and how is it gaining significance in a dynamic market like India 

Embedded insurance integrates relevant insurance solutions directly into the customer’s purchase journey of day-to-day products and services. In a country like ours, it has become popular across sectors, ranging from insurance to non-insurance players. Embedded insurance allows insurers to not only launch new products quickly at lower costs, but also test the market reasonably sooner in the cycle. All this makes it imperative for insurers to embed their products and services into different customer journeys in third-party ecosystems. 

Examples of such insurance products include online protection, insurance for mobile phone theft and damage, insurance for vehicle, electronic appliances, coverage for specific diseases and accidental insurance among others.

What does the future of embedded insurance look like, especially when the marketplace is gradually shifting to online commerce today? 

Technology plays a pivotal role in embedded insurance. With the help of insurtechs, the concept of embedded insurance enhances customer engagement by offering protection and peace of mind exactly when it is most needed. 

For instance, you purchase an AC and you are offered an extended warranty cover at a nominal charge which in return provides you hassle-free future and covers the expenses in case of any future breakdowns. The real magic is not providing a top-up or a cover, but the use case to create a partnership between an insurer and distributor which is scalable and sustainable. 

India is inching closer to being the country with the most Gen Z and Millennial population. For a country like ours, it is important to understand the audiences' mindset and offer them the best in class products without pinching their pockets. The popularity of embedded insurance has increased in the digital age as it becomes more convenient for brands to place the right kind of insurance product when a customer is purchasing a product or service online. Zopper has successfully been able to customize all our channels with the help of technology and SWOT analysis and has been able to deliver policies and products successfully.

How does Zopper as an insurtech company look at this sector? What are the future plans, can you briefly mention?

Embedded insurance has helped the industry in a big way in bettering customer experiences and from an insurance penetration standpoint. For a new-age technology firm like Zopper – we play a pivotal role in insurance distribution by facilitating the issuance of low-value covers and streamlining claims process. We connect companies with insurers embedding insurance seamlessly into the core systems of distribution partners. Embedded Insurance is a perfect lifestyle experience for Indian consumers and Zopper has taken notable strides across multiple formats of insurance distribution such as Phygital, Bancassurance and Retail, among others. We are the category creators who are here to ensure and provide hassle-free services to our customers by gauging their problem statements. 

From the future standpoint, our plans are rooted in identifying and capitalizing on opportunities within the insurance sales landscape. One area of significant potential lies in the SME segment, where there is considerable traction from both public and private sectors. We are closely monitoring developments in this space and exploring avenues to leverage this opportunity. There is immense interest in this space and we have got the right set of people in terms of technology to become the largest player. 

Our core vision and mission remains the same, to enable insurance distribution to every mile possible with the help of technology.

Could you throw some light on your product portfolio and the specific features that you offer? 

Zopper is an embedded platform for insurance sales, which helps insurance companies reach out to ecosystem partners for selling products. With our unique expertise, we help enable companies to generate higher revenue through cross-selling and customers get the insurance coverage. Our customer portfolio includes companies in sectors such as ecommerce, financial services, retail chains, consumer products, travel, and others. All our products are tailor made for our end users and partners keeping three C’s in mind - ie, Customisation, Convenience and Contextual Solutions. The most important benefits of embedded insurance include customisation and convenience at one go, besides easy digital access and contextual solution

How is it different from a general policy cover? Tell us about Zopper’s product offerings 

Insurance in India is generally provided as a wide set of risks insured into one product. The original idea was the customer lacks the awareness to pick and choose his or her right coverage. With the new age customer journeys on offer, the need for a simpler bite sized cover, at a nominal price, is become more relevant and contextual. Earlier, we only had travel insurance sold as a package policy consisting of 10+ covers costing say INR 1000. But today, Zopper has been able to offer a Flight Delay cover, cherry picked out of the package, costing say INR 200. So here, we did not create a new risk cover, we only focussed on a cover which was the need of the hour. This flight delay cover, if offered on a Taxi ride aggregator service, will turn out to be highly logical, affordable, scalable and sustainable. If someone is booking a taxi to airport costing INR 800, he is not going to buy a travel package for INR 1000, but he is likely to be interesting in flight delay cover costing INR 200. 

Embedded insurance coverage is not different from a general policy in any way, but the method and execution is radically different.

Zopper’s product offerings range across Extended Warranties, Travel insurance, Sachet Life and Health covers, EMI protection plans, etc.

What is the key success factor associated with it? 

The success of embedded insurance will rely on these things: Technology, Scale & Sustainability. Given the fact it will mostly be a sachet insurance product, higher volumes are imperative to make sense. Also, only high volumes will ensure law of large numbers to make it profitable. Else, one claim can wipe off a lot of hard work. High volumes cannot be attained without a highly efficient technology platform. Gone are the days of filling long proposal forms; today everyone only prefers checkbox and OTP! Capturing the minimum required data from allied resources does the trick. Asking a customer to fill elementary information for the sake of insurance will lead to mass drop offs.