The insurance industry in India is a large market, with 57 insurance companies out of which 24 are life insurance companies, and the remaining deal in the non-life insurance sector. The insurance sector in the country is expected to grow at a CAGR of 5.3% between 2019 and 2023.
Even the Union Budget has increased the FDI limit in the insurance from 49% to 74%. The Initial Public Offering( IPO) of LIC is expected to issue in the Financial Year 2022, according to the Union Budget of 2021 which was presented by Finance Minister Nirmala Sitharaman, which is expected to generate USD 13.62 billion which is equivalent to Rs. 1 lakh crore.
With the ongoing pandemic and the lockdown situation in the country, all the industries are trying to bring their operations in online mode. The different industries have realized that to be successful and to be consistent in the post COVID world and even to survive the pandemic without shutting down the businesses, the technology needs to be used, the online presence of the business in must, since conducting online businesses is the only mode when the whole nation sits at home.
The same has happened and is happening in the insurance sector.
Initially, insurance companies used to sell their agents to people’s houses to inform them about the different policies and eventually convert them into customers. But a new startup has come up which is changing the dynamics of the traditional insurance industry and bringing in technology in this sector. This startup is basically disrupting the industry and introducing a new chapter in this sector that involves technology.
Founded in 2019 by Amit Boni, who earlier was the Motorola executive, Rohit Sadhu who had the experience of working in PwC and EY, and IIT Roorkee alumni Vikas Ranga, who had led AI/ML labs at MapmyIndia, Ensuredit is on the mission to unlock the potential of the insurance industry of India. It helps the customers and the insurance intermediaries with an AI-based product platform that helps in enriching the customer experience and thus empowering them.
The startup which is based in Bangalore is engaged in
- Distribution of AI-powered mobile-based distribution platform
- Accessibility by developing low-cost products
- Personalization by IoT based individual risk profiling
The startup aims at providing help to the insurance companies by giving them the platform which is made by artificial intelligence which can improve the customer experience. The startup, on November 25, 2020, has raised Rs 2.5 crore. This funding round was led by the Venture Catalysts and was called the Pre Series A round. The company had planned to use the funding to have a position as the market leader by increasing the outreach of its tech infrastructure.
On this funding, the founder and the CEO of the company said that the vision of the company is straight and simple which is to transform the insurance sector with the company’s AI-based, API integrated platform and give a modified experience to the customers. The investors’ Venture Catalyst supported the idea of the startup and he plans to use the funding to enhance their technology, thus growing themselves.
This is a new initiative and if successful can help change the industry and the sector can move ahead and develop and run in the long run.