Recently, we interacted with Mr Paras Mehta, Director of Engineering at Bimaplan – an upcoming Insurtech Platform, where they work with insurers to create over-the-counter, low-premium insurance products relevant to the needs of low- and middle-income populations.
Here are the interview highlights:
Can you explain Bimaplan’s main goal and the insurance challenges it tackles
A. We are simplifying insurance distribution and making insurance accessible. We aim to create India’s largest insurtech platform, to offer vital insurance solutions to individuals who currently lack access to formal risk protection. More than 50% of the rural population and 66% of the urban population in India currently do not have insurance coverage. We are simplifying insurance distribution through an end to end digital process and embedding insurance to offer effective plans to the customer when it is most relevant. By reducing the operational costs associated with insurance distribution, we are not only making premiums more affordable but also customizing insurance plans to ensure they are relevant and effective for our customers.
What makes Bimaplan stand out in the competitive insurtech market?
A. Our commitment to serve the missing middle is the driving force behind our continuous innovation to disrupt the current insurance landscape. We strive to deliver affordable insurance solutions that are effective and tailored to the unique needs of this underserved demographic. Our agile approach sets us apart, enabling us to swiftly adapt to the ever-evolving requirements of our valued customers. Also, our tech stack has the ability to activate and tailor multiple insurance products with single API integration. From seamless digital interactions to data-driven insights, our tech-driven capabilities empower us to not only meet but exceed the expectations of our customers.
How does Bimaplan approach embedded insurance within its insurtech offerings, and what advantages does this approach bring to your customers and partners?
A. In terms of our strategies, we employ a variety of approaches, including embedding insurance through bundling, linking, and related methods. These diverse approaches enable us to cater to a wide range of customer needs and preferences. Bundling is when insurance coverage is seamlessly included as a value-added service with the core product, eliminating the need for customers to actively opt-in. For instance, NBFC automatically includes complimentary credit life insurance with every loan to provide financial protection to their customers’ families,
Linking, on the other hand, involves offering insurance as an optional add-on at the point of sale. For example, when someone purchases a mobile phone and is given the choice to add an extended warranty during the checkout process, this represents a linked approach. Lastly, related embedding refers to the practice of offering insurance at various points in a customer’s life cycle, even if it isn’t directly tied to the ongoing transaction. For instance, an online medical store recommends health insurance to a customer, even though it isn’t part of the current purchase. Embedded insurance is a win-win, benefiting businesses with added revenue and enhanced customer loyalty, while customers gain access to relevant, cost-effective insurance through a seamless digital process. For customers, embedded insurance means gaining access to tailored insurance products that offer relevant coverage. Additionally, digital distribution lowers premium rates, ensuring cost savings. With an instant policy issuance process, customers enjoy hassle-free and efficient service. For our partners, embedding insurance enhances their product value proposition, making it more attractive to customers. It fosters improved customer engagement and loyalty by offering added benefits. Additionally, it opens up a new revenue stream, creating opportunities for increased profitability.
How does your company prioritize customer trust and data security while offering innovative insurtech solutions?
A. Customer convenience and data security are our foremost priorities since we are providing insurance online. As we operate digitally, safeguarding customer data, encompassing personal information and KYC records, is of utmost importance. To achieve this, we implement robust encryption measures to protect data both when it is stored and when it is in transit. Additionally, we enhance security by utilizing trusted and secure banking APIs for all payment and transaction processes. Our unwavering commitment to securing customer data ensures that customers can enjoy the benefits of digital insurance with peace of mind, knowing that their information is safe and protected.
What new technologies or trends do you think will greatly influence the industry, and how is your company adapting to take advantage of them?
A. The Health Stack represents a significant boon for the insurance sector since it will have comprehensive healthcare data across the country. With the help of relevant technology, we will be able to predict the need of specific insurance products and tailor offerings based on the same to provide personalized and effective coverage. Digital integration promises to revolutionize the industry by providing consumers at lower premiums while enhancing the overall customer experience. Also, Generative AI, since its introduction, has played a pivotal role in insurance, from pre-sales activities focused on product awareness to post-sales endeavors involving fraud detection and prevention. It leverages advanced technologies to inform customers about insurance products and safeguard insurers against fraudulent activities, contributing to a more efficient and secure industry landscape. This dynamic shift towards contextual and cost-effective insurance offerings has the potential to be a game-changer, ensuring that insurance plans align closely with individual needs and circumstances, ultimately benefiting consumers and reshaping the insurance landscape.
