Insurance Penetration Challenges in India and Startup Involvement

As insurance penetration remains a significant challenge in India, startups are increasingly leveraging their distribution capabilities to capture a share of the general insurance market.

Startups Entering the Insurance Market

• Several startups such as Rapido, IndMoney, and Park+ are either securing or in the process of applying for a corporate agency licence.
• This licence allows companies to collaborate with 27 insurance companies across life, general, and health insurance to distribute their products.

Rapido's Insurance Strategy

• Rapido is obtaining approval from the Insurance Regulatory and Development Authority (IRDAI) for a composite corporate agent licence.
• The objective is to offer insurance products to both drivers and customers.
• A new subsidiary has been set up specifically for this purpose.
• The company aims to distribute insurance across motor, general, health, and life insurance segments.

Rapido's approach mirrors the strategy adopted by Ola, which launched a full-stack insurance offering for its driver partners and customers, including trip insurance.

Park+'s Insurance Distribution Ambitions

• Park+ is striving to establish a full-stack insurance distribution business.
• The company successfully obtained a corporate agency licence in March.