Freo gets IRDAI license to offer specialised insurance products to masses
Freo is preparing to launch a series of cost-effective and intuitive insurance solutions catered to its diverse user base spanning over 1,200 cities in line with the Centre's shared vision of 'Insurance For All By 2047'.
- Oct 22, 2024,
- Updated Oct 22, 2024 8:44 PM IST
Freo, the digital finance application, has been granted the corporate agent license by the Insurance Regulatory and Development Authority of India (IRDAI). With this, Freo can offer a range of customised insurance products to its 25 million registered users through partnerships with insurance providers.
The insurance penetration rate in India is currently at approximately 4.2%, lower than the global average of 7%. This indicates that a significant portion of the population in India remains uninsured or underinsured. One contributing factor to this gap is the widespread belief that insurance is complicated and only necessary for health or life coverage. Additionally, many consumers are either unaware of or do not recognize the importance of insurance products, viewing them as additional expenses rather than crucial protection.
Furthermore, the lack of personalized options, along with issues of mis-selling and low trust, further dissuade individuals from considering insurance as a viable safety net. However, with a collaborative effort between the industry and regulators and the shared vision of 'Insurance For All By 2047', the insurance sector in India is projected to grow at an average rate of 7% in the coming years, which is three times the global growth rate.
Freo is preparing to launch a series of cost-effective and intuitive insurance solutions catered to its diverse user base spanning over 1,200 cities. The range of products will encompass tailored plans for women's health, supplementary choices for current health policies, and protection against prevalent illnesses like malaria and dengue.
"Freo’s future scope includes increasing collaboration with top insurance brands in the country to bring more innovative and affordable products to its customers. By integrating and personalizing these products, Freo aims to improve trust, user experience and grow its customer base further deepening its footprint across Tier II and III locations across India. This is in line with the vision of Viksit Bharat by 2047," the company said after getting the corporate agent licence.
The insurance industry is currently struggling with issues such as limited personalized options, rampant mis-selling, and eroding consumer trust, all of which hinder the adoption of insurance as a reliable safety measure.
Nonetheless, the sector is poised for growth with the regulatory goal of achieving "Insurance For All By 2047." It is projected to experience an average annual growth rate of 7% in the foreseeable future, a rate three times higher than the global average.
In August of this year, Irdai has called upon companies to develop strategies to offer cost-effective insurance products to achieve the goal of "insurance for all" by the year 2047. To achieve this, companies have been advised to diversify their providers in order to introduce a wider range of insurance products, thus promoting competition and driving down prices. Additionally, it has been recommended to expand distribution channels to improve insurance accessibility, particularly in underserved areas.
Companies have proposed utilising Insurtech to streamline operations, lower administrative costs, and increase efficiency. They have suggested that these operational cost savings could be passed on to consumers in the form of reduced premiums.
Freo, the digital finance application, has been granted the corporate agent license by the Insurance Regulatory and Development Authority of India (IRDAI). With this, Freo can offer a range of customised insurance products to its 25 million registered users through partnerships with insurance providers.
The insurance penetration rate in India is currently at approximately 4.2%, lower than the global average of 7%. This indicates that a significant portion of the population in India remains uninsured or underinsured. One contributing factor to this gap is the widespread belief that insurance is complicated and only necessary for health or life coverage. Additionally, many consumers are either unaware of or do not recognize the importance of insurance products, viewing them as additional expenses rather than crucial protection.
Furthermore, the lack of personalized options, along with issues of mis-selling and low trust, further dissuade individuals from considering insurance as a viable safety net. However, with a collaborative effort between the industry and regulators and the shared vision of 'Insurance For All By 2047', the insurance sector in India is projected to grow at an average rate of 7% in the coming years, which is three times the global growth rate.
Freo is preparing to launch a series of cost-effective and intuitive insurance solutions catered to its diverse user base spanning over 1,200 cities. The range of products will encompass tailored plans for women's health, supplementary choices for current health policies, and protection against prevalent illnesses like malaria and dengue.
"Freo’s future scope includes increasing collaboration with top insurance brands in the country to bring more innovative and affordable products to its customers. By integrating and personalizing these products, Freo aims to improve trust, user experience and grow its customer base further deepening its footprint across Tier II and III locations across India. This is in line with the vision of Viksit Bharat by 2047," the company said after getting the corporate agent licence.
The insurance industry is currently struggling with issues such as limited personalized options, rampant mis-selling, and eroding consumer trust, all of which hinder the adoption of insurance as a reliable safety measure.
Nonetheless, the sector is poised for growth with the regulatory goal of achieving "Insurance For All By 2047." It is projected to experience an average annual growth rate of 7% in the foreseeable future, a rate three times higher than the global average.
In August of this year, Irdai has called upon companies to develop strategies to offer cost-effective insurance products to achieve the goal of "insurance for all" by the year 2047. To achieve this, companies have been advised to diversify their providers in order to introduce a wider range of insurance products, thus promoting competition and driving down prices. Additionally, it has been recommended to expand distribution channels to improve insurance accessibility, particularly in underserved areas.
Companies have proposed utilising Insurtech to streamline operations, lower administrative costs, and increase efficiency. They have suggested that these operational cost savings could be passed on to consumers in the form of reduced premiums.