Insurance Premium Financing : A first in India

Nearly 71 % of our population is uninsured for medical expenses. Around 88% of homes are uninsured. Likewise, nearly 65% of two-wheelers, 18% of private cars and 12% of goods-carrying vehicle are uninsured. Coming to micro & small enterprises, nearly 88% are uninsured.

It is our estimate that the gross uninsured market for the insurance products of interest to households and micro & small enterprises is worth about Rs. 71,000 crore in premium. This offers a major opportunity for the non-life insurance sector to build on. The situation also offers a totally new opportunity to banks and NBFCs to finance insurance premium in a major way.

The need of the hour is for all stakeholders to collaborate for a demand-side intervention and financially enable the Indian households and micro & small enterprises to buy (or to buy more of) insurances.

FinsAll is working towards building this collaboration by creating a platform for customers, lenders, insurers, insurance intermediaries and distribution agencies to come together and provide or facilitate financing of insurance premium requirements of the uninsured / under-insured individuals, households and enterprises. The enabling environment targeted by us involves availability of finances at doorstep, low interest rates, no collateral security, minimal documentation, digital transactions and API-driven exchange of data & documents among all stakeholders.

A value proposition to all

Customers
  • Financial enablement to buy or to buy more of insurance.
  • EMI Facility. Attractive interest rate.
  • No collateral security or surety.
  • Freedom to place insurances with insurer/intermediary of choice.

Lenders
  • Lending opportunity worth Rs.66k crore in a new segment.
  • Cost-effective outsourcing of lending ops.
  • Zero finanical risk.Delinquency fully underwritten.

Insurers
  • New business opportunity worth Rs.71k crore.
  • Payment of full insurance premium to insurers by lenders.
  • No lien over claims.
  • Opportunity to cross-sell and up-sell.

Intermediaries
  • Incremental remuneration of Rs. 15k crore.
  • De-risking of business book from lumpy business.

Channel Partners
  • An opportunity to earn fee-based income up to Rs. 1,300 crore.
  • Synergistic working whilst continuing with their core offerings.

FinsAll offers individuals, households and enterprises an opportunity to avail of loans for buying insurance through its B2B and B2C platforms. Representing the lending banks, we shall carry out the entire range of activities involving customer acquisition (i.e., documentation, collection of upfront contribution & EMIs, payment of full insurance premium by banks directly to an insurance company of a borrower’s choice and confirmation of payments) and customer service (i.e., online accounts, tracking of payments, reminders and delinquency management). To ensure seamless interface between lending banks, insurers and our institutional business associates, FinsAll shall manage processes, data and documentation through exchange of APIs.

FinsAll positions itself as an aggregator of loans and underwriter of the financial risk of lenders and is not an insurance intermediary.

To know more about the structural and operational aspects of our proposition, please click here. We invite lenders, insurers, insurance intermediaries and distribution channels to partner this first-of-its-kind demand side intervention in India and welcome enquiries at info@finsall.com