'Simple, low-ticket products can address affordability issue in insurance': Sameer Mathur

Despite regulatory liberalisation and reforms, insurance penetration in India remains among the lowest, accounting for just around 3.7% of the country’s GDP, against the global average of over 7.3%. Sameer Mathur, Managing Director and founder of a fintech firm Roinet Solution, believes that the insurance ecosystem in India has remained largely sales-led, limiting trust and adoption. In an interview with Gyanendra Keshri of DH, Mathur said the problem in India is not affordability, but product design, distribution incentives and claims experience. He also delved on the role of fintech in financial inclusion and driving adoption of low-ticket insurance. Edited excerpts:

How do you see the announcements in the Union Budget for fintech and insurance sector?

The Budget maintains continuity in strengthening India’s digital public infrastructure, with recognition of platforms such as UPI that have significantly expanded access to financial services and supported the growth of the fintech ecosystem. At the same time, there is scope for greater clarity on the roadmap for fintech’s next phase of evolution, particularly across lending, wealth creation and insurance, which are critical to advancing financial inclusion. Enhanced policy support for players building infrastructure to expand reach in smaller towns and underserved segments could further improve last-mile access. Greater emphasis on resource allocation towards education and MSME development would also contribute to long-term economic resilience. A more integrated policy approach could help fintech play a stronger role in enabling inclusive and sustainable growth.

What needs to be done to boost insurance penetration in India?

Insurance cannot be introduced in isolation. Financial inclusion must come first. Once people have access to basic banking and income stability, they are more open to protection products. Affordability is addressed by designing simple, low-ticket (“chota”) insurance products that match the real needs of rural households—health, accident, crop, and general insurance. We deliberately avoid complex products and focus on what people genuinely require.

How do you tackle trust and mis-selling issues in insurance?

This is a critical concern. We address it in three ways: (a) Simple product design: No complex clauses. Customers clearly know what they pay and what they get, (b) Direct customer education: We create explanatory videos and digital communication so customers understand products even if an agent misses something, and (c) Independent policy verification: We have partnered with a third-party company that reviews policies using OCR and provides customers with a simple summary of inclusions, exclusions, and suitability—for a small fee.

What are your expansion plans and targets going forward?

We already have a strong on-ground infrastructure built over the last 8–10 years, including a vast network of customer service points. We currently work with around 70,000 partners and agents, serving nearly 4 crore customers. We started with Uttar Pradesh and Bihar and are now expanding to eastern, western, and southern regions. Over the next two months, we plan to launch 2–3 additional health insurance products and gradually scale pan-India.

How do you see the Indian market opportunity for your company?

From a company point of view, the opportunity in India, especially in rural and underserved communities, is enormous. Around 700–800 million people still lack access to comprehensive financial services. Our belief is that access to basic financial services should be a right, not a privilege. Over the past decade, we have focused on financial inclusion, ensuring people can access savings accounts, basic banking, and cash management. Now that livelihoods in rural India are improving, the timing is right to introduce other essential financial services, particularly insurance, in a meaningful and responsible way.

Why is your focus more on general and health insurance?

General and health insurance meet immediate and visible needs in rural communities. Health expenses or accidents can push families into distress overnight. Penetration in these categories is still very low, despite government schemes. Our focus is to bridge this gap by offering basic, understandable products that complement existing coverage rather than replace it.

How do your offerings complement government schemes like Ayushman Bharat?

Government schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) have achieved significant coverage. However, Ayushman Bharat faces operational challenges, including hospital participation and delayed reimbursements. While these schemes provide a basic safety net, many gaps remain. Our role is to complement government programmes by offering additional protection layers tailored to real-world needs, especially where public schemes fall short.