Freo, the pioneering Indian neo-bank, has entered the insurance sector after securing a Corporate Agent licence from the Insurance Regulatory and Development Authority of India (IRDAI). This strategic move will enable Freo to offer a variety of affordable and curated insurance products to its 25 million registered users. The new offerings range from women’s health coverage and super top-ups for existing health policies to protection against common diseases like malaria and dengue, as well as cyber fraud protection and job loss insurance.
Expanding Freo’s Vision for Unified Financial Solutions
Freo’s entry into the insurance space is part of its broader vision of providing comprehensive financial services tailored to middle-income Indians. The company, which already offers a range of borrowing and saving products, is now aiming to create a holistic financial safety net for its users by adding insurance to its portfolio.
“Our vision has always been to create a unified financial app for middle-income Indians, where they can borrow, save, and now, protect themselves with affordable and easy-to-understand insurance products,” said Kunal Varma, Co-founder and CEO of Freo. “Our entry into insurance is not just about filling a gap in our product suite. It’s about building long-term trust with our users and offering a holistic financial safety net.”
With its insurance offerings, Freo aims to bridge the gap in India’s underpenetrated insurance market by making insurance simple, affordable, and accessible for all.
Affordable and Accessible Insurance Products
Freo’s insurance portfolio includes a range of products that address various needs, including:
- Women’s health coverage: Offering targeted insurance plans designed to cover critical health issues affecting women.
- Super top-ups for existing health policies: Enhancing existing health insurance plans with additional coverage to manage higher medical costs.
- Protection against common diseases: Coverage for illnesses like malaria and dengue, which are prevalent in India.
- Cyber fraud protection: As digital transactions grow, Freo is introducing coverage to protect users from cyber-related risks.
- Job loss insurance: A unique offering aimed at providing financial protection in case of sudden unemployment.
Freo’s insurance plans start at just Rs 49, ensuring that premiums remain affordable, particularly for those seeking essential coverage without a high financial burden. “We wanted to offer pocket insurance that is simple, trustworthy, and within everyone’s reach,” Varma explained.
Seamless User Experience with Integrated Digital Solutions
Freo’s fully integrated platform allows users to seamlessly complete their Know Your Customer (KYC) verification and purchase insurance policies directly within the app. This convenience reflects Freo’s commitment to providing user-friendly financial solutions that meet the needs of tech-savvy, middle-income consumers.
The platform’s seamless integration not only simplifies the insurance purchasing process but also enhances accessibility for users, many of whom may have found traditional insurance products complicated and out of reach. By eliminating complexity and offering transparent, easy-to-understand policies, Freo aims to increase insurance penetration in India.
Addressing India’s Low Insurance Penetration
India’s insurance penetration remains low compared to global standards. In the life insurance sector, India ranks tenth in the world, with a global market share of just 2.73% in 2019. Similarly, in the non-life insurance sector, India ranks 15th, with a market share of only 0.79%, according to data from the IRDAI.
Freo aims to tackle these challenges head-on by providing insurance solutions that address the specific needs of Indian consumers. The company’s approach is designed to counter the issues of misselling and complex insurance products that have historically plagued the sector.
“India’s insurance sector faces several challenges, such as misselling and a lack of affordable, simple products. We’ve ensured that our products are easy to comprehend and avoid the complexities that make insurance unapproachable for many,” Varma emphasized. Freo’s focus on transparency and affordability is expected to contribute significantly to improving insurance adoption rates in India.
A Holistic Financial Platform for the Future
By expanding its product offerings into the insurance sector, Freo is positioning itself as a one-stop solution for financial services. Whether users need loans, savings options, or insurance protection, Freo aims to provide a comprehensive suite of services that cater to all aspects of financial well-being.
“Our goal is not just to offer financial products, but to build long-term trust with our users by providing solutions that enhance their financial security,” Varma added. By 2047, Freo aims to become a household name in India, offering comprehensive, user-friendly financial solutions that cover every aspect of financial management, including insurance.
Final Thoughts
An important stage in Freo’s development into a comprehensive financial services platform is its entry into the insurance industry. Freo can now provide customised, reasonably priced insurance policies that cater to the needs of middle-class Indians thanks to the support of IRDAI’s Corporate Agent licence. While tackling the issues of low insurance penetration in India, Freo is dedicated to making insurance more affordable, transparent, and accessible as it expands and innovates.
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