Many surveys found that there are a huge number of two-wheeler vehicles that are still uninsured. This fact led fintech firms and digital payment app providers to launch insurance plans on their platforms for providing ease and accessibility to avail insurance to users. So, leading digital payment apps collaborated with insurance giants to provide insurance plans for two-wheelers on their platforms. These apps ease up the process of availing insurance, offer instant claim settlements, and other services. More and more two-wheeler owners will avail insurance for ease, convenience, and smooth experience in the coming years. According to the report published by Allied Market Research, the global two-wheeler insurance market is estimated to generate $171.88 billion by 2030. Following are some of the activities taking place across the globe.
Fintech firms have been offering new insurance offering on their platforms. MobiKwik, one of the leading fintech firms, launched two-wheeler insurance plans on its platform in collaboration with SBI General Insurance and Cholamandalam MS General Insurance Company Ltd. Through the launch of new plans and collaboration with giant insurance companies, users can avail two-wheeler insurance through the app in simple steps. The insurance plans offer covers for personal accident, zero depreciation, and around the clock road assistance.
The involved companies aim to provide a wide insurance portfolio, products that are easy to understand, and seamless process of claiming. There have been a huge number of uninsured two-wheeler vehicles as compared to other vehicle types. This gap led the companies to form a partnership to make two-wheeler insurance more accessible than before. They used digital app platform and fintech firms for achieving the aim of increasing the number of insured two-wheeler vehicles.
The collaboration of insurance companies with payment apps and fintech firm continues. PhonePe launched two-wheeler vehicle insurance to its product portfolio. This insurance was launched in collaboration with Bajaj Allianz General Insurance. Along with insurance for two-wheelers, the company launched insurance for cars as well. Commenting on the launch and availability of insurance products on its platform, the company highlighted that users do not need to upload any documents before buying the insurance plans. Moreover, they can see their policy documents in the app. The company simplified the process of availing insurance through its app. Users need to select the plan, fill up all the two-wheeler vehicle details, and make the payment through the app only. Moreover, the fintech player provided services such as renewals and instant settlement of claims. The insurance plans involve options such as engine protection, 24X7 roadside assistance, and zero depreciation.
The digital payment app providers have been aiming to provide one-stop solution for users. So, they added insurance product portfolio to their platforms. The company found that two-wheelers in India contribute to nearly 70 percent of the total vehicles and many of those vehicles are either uninsured or under-insured. So, they aim to explore the huge potential in this segment. With millions of users on their platforms, they aim to make insurance accessible and affordable to every user. This strategy will enable these fintech firms in gaining entry and raising their stake in the insurance sector.
