Customisation key to affordability and penetration for insurance coverage: Zopper COO

Speaking to DH’s Anjali Jain, Mayank Gupta, co-founder and COO of the B2B-focussed insurtech startup - Zopper, dwelled how technology is helping increase insurance coverage, the uptick in health insurance since Covid-19 and the opportunities presented by the formalisation of the economy, rising disposable income and customised policies.

India’s insurance market seems to be on a path to recovery post the pandemic, with general insurance growing 16 per cent and life insurance growing 18 per cent year-over-year in FY23, according to a PwC report.

However, penetration remains low compared to other economies, due to factors such as unaffordability and limited distribution reach of traditional players.

This presents an opportunity for insurtech startups to tap into. Speaking to DH’s Anjali Jain, Mayank Gupta, co-founder and COO of the B2B-focussed insurtech startup - Zopper (owned by Solvy Tech Solutions Pvt Ltd), dwelled  how technology is helping increase insurance coverage, the uptick in health insurance since Covid-19 and the opportunities presented by the formalisation of the economy, rising disposable income and customised policies.

Edited excerpts.

What is the insurance penetration in the country presently?

We are at a very meagre insurance penetration stage. It is defined by the insurance premium as a percentage of our GDP. And that number is about 4.2 per cent. And it is very low as against the global average of around 7-8 per cent. In developed economies, this number can be as high as 15 per cent. So, India has to now go through a revolution where insurance penetration has to increase along with insurance coverage.

However, if you look at the number of people who are covered by insurance, that's a very healthy number because there are a lot of government schemes, in which practically everybody in the country is covered. The premium is very low, but so is the coverage.

How has Zopper performed in its 12 years in existence? What is your growth outlook?

We reached an annualised recurring revenue (ARR) of $100 million Gross Written Premium (GWP) around one and a half years back. We are quite far ahead of that number now. In March of 2024, we will reach an ARR of $300 million GWP. We are doubling our premiums year on year. There have been years when we have grown more than 100 per cent.

In FY23, we did close to Rs 200 crore of revenue, which was more than 2.5 times of our revenue the previous year. We are expecting our revenue to grow more than 100 per cent this year as well. In terms of the number of policies we assisted in, it has been more than one crore policies in the last five years. As of today, we are assisting close to half a million policies per month.

How has technology changed the insurance space?

Today, the insurer tech market is growing at about 40 per cent year on year. And it presents a huge opportunity because insurance companies are opening up to adopting technology since it has disrupted the space in many ways.

First is availability. Earlier, if you had to buy insurance, you would either wait for somebody to call you or go to a bank or maybe an insurance company's office or website. Today, insurance can be made available at any point of time.

Second is that customised products can be created that are affordable and very contextual. We are able to suggest to customers an insurance plan which is very relevant for them based on their socio economic profile and different life stages.

Third is claims processing and automation. You don't have to wait for weeks or months for your claims to get reimbursed. Today, there are WhatsApp chat bots, or apps where you can simply register your claim. Your claims are processed in real time.

How has the acknowledgment of health insurance changed since the pandemic?

It definitely increased the awareness about having a health insurance plan. Health insurance premiums were the highest after Covid because a lot of people enrolled in insurance plans. We are also seeing a surge of health insurance tech companies who are creating new types of health insurance products and simplifying the claim journey. The government also has pushed the agenda of health insurance. In fact, it is now building a standard network of hospitals and rate cards.

How can you bring affordability to the space?

Data helps in bringing affordability. It can help in determining premium, which is different for different risk profiles. Not everybody needs to pay the same premium, it should be based on usage in motor insurance or health stats in life or health insurance. Secondly, it is possible to split the insurance plan into smaller segments or bite sized plans.