PhonePe sells over 9 mn digital insurance policies, 4 mn in one year

Walmart-backed payments firm PhonePe on Thursday said it has sold over 90 lakh insurance policies since entering the market in September 2021, of which 40 lakh were in just one year in 2023.

PhonePe had entered the insurance space in 2020 with a corporate agency licence, before acquiring a full-fledged insurance broking licence. It currently distributes life, health, motor and car insurance with partners such as Acko, among others, and allows users to pay in monthly subscriptions through UPI.

"PhonePe started offering insurance on its platform in September 2021, and since then has sold over 9 million overall policies, with over 4 million being sold in the last year alone. The digital insurance market is growing at a CAGR of 24 per cent, with a large part of this growth coming from PhonePe," the fintech firm said in a statement.

The fintech giant announced that it has contributed to over 65 per cent growth for two-wheeler digital insurance in India, over the last 2 years. The company has also facilitated over 75 million vehicle insurance quotes and 400 million quotes across insurance products. The digital insurance industry is rapidly growing at a 24 per cent CAGR (Compound Annual Growth Rate).

In an attempt to ease financial burden on customers, PhonePe recently introduced a unique monthly premium plan for health insurance, allowing monthly payouts instead of annual lump sum payments.

"True to its ethos of positive disruption, PhonePe is revolutionising the insurance buying experience in India. Our monthly premium plan for health insurance is another step in our commitment to providing innovative, customer-friendly solutions that truly address the needs of the modern Indian consumer. What sets PhonePe apart is its strategic partnerships with industry leaders, bringing deep expertise to co-create tailor-made offerings for its expanding customer base," Vishal Gupta, CEO of PhonePe Insurance, said.