You have bought health and life cover, but have you considered insuring the branded spectacles you bought last Diwali? How about insurance for a new bicycle?
A slew of startup insurance companies, mostly selling online to keep costs low, are trying to sell micro insurance products, promising low premiums and rapid settlement. Often working with larger insurers, they try to sell to a small demographic segment of affluent, digitally savvy customers in India where insurance penetration is among the lowest in the world.
This monsoon, for instance, some 25,000 people bought cover against the risk of dengue from Toffee Insurance, a startup backed by funders such as Omidyar Network, Kalaari Capital and Accion. The numbers are small and growing, but mark the emergence of an interesting new trend in a business thus far dominated by long-term plans with annual premiums, for automobiles, accidents, health, property and so on.
Read more at The Economic Times.