Buoyed by the success of sachet products in the FMCG sector, the insurance industry is now looking to repliacte it.
Private player ICICI Lombard General Insurance is planing to roll out small-ticket insurance products and is working with e-commerce players, wallet companies, payments and small finance banks for the same.
“We are very conscious of the fact that we don’t want to just push products but create value for the customer,” said Sanjeev Mantri, Executive Director, ICICI Lombard, adding that the insurer is innovating on sachet-size products and is partnering with digital platforms for distribution.
“E-commerce and wallet companies are a new channel, which none of the insurance companies had thought of three to four years ago. We have worked with wallet companies and do contextual offering to the customer like a short-circuit cover while paying electricity bill through a wallet,” he said.
In the past, the general insurer has tied up with Paytm to offer about eight products including group personal accident insurance cover, insurance for vector-borne diseases and mobile insurance.
It has also tied up with Mobikwik for insurance of household goods as well as a cyber cover that can be paid on a monthly basis.
A number of insurers have been working on small-ticket insurance products for targeted segments that can be renewed on monthly, quarterly or even daily basis, which, in turn, means a lower premium payout for the customer.
For instance, ICICI Lombard’s cyber insurance cover on Mobikwik can be availed of digitally through the app at only ₹99 per month and with a sum insured of ₹50,000. It has a validity of one month.
Mantri also said the general insurer has three or four new product innovations at various stages of approval, which are likely to be launched during the course of the financial year.
The general insurer has also set up a digital arm called ICICI Lombard Digital for products aimed at online and digital channels.