Digital insurance startup McXtra has raised a pre-Series A round of $1.3 Mn funding from a clutch of twelve investors whose names were undisclosed.
McXtra is essentially an insurtech platform which helps the user create a policy vault of all his insurance policies. Launched in April 2014 by A S Narayanan and Nimish Airon, the startup claims to provide 24/7 emergency services to the family of its users.
As mentioned on its website, “While India’s insurable population is set to touch 750 Mn by 2020, the systems surrounding it continue to be stagnant, and even regressive. Insurance can be confusing or complicated. McXtra leverages ‘Intelligent solutions’ to deliver a seamless insurance experience, Driven by our twin-mission of empathy and convenience.”
The startup will be using the raised funds to scale up its tech platform and to reach out to more users.
How McXtra Works?
McXtra aims to empower organisations and their employees to get maximum benefits out of their existing policies by offering services and assistance across health, motor, life, and travel insurances.
It allows organisations to extend insurance services and assistance to their employees and their immediate family members. From decoding the policies for easy understanding in helping them get their claims settled, McXtra does it all.
“We ensure that employees and their families get extra assistance when they need it the most without going through any painful task of getting in touch with their individual insurance companies, any website or company call centres,” as mentioned on the startup’s LinkedIn company profile page.
According to the reports, McXtra is currently in partnership with 30 corporate entities and plans to target their one lakh user base in near future.
Online Insurance Sector Is Far From Saturation As Of Now
A report by Boston Consulting Group (BCG) estimates that the digital influence on insurance purchases will grow to 50% for life insurance and 75% for general insurance by 2020.
Further, according to IBEF, India with 3.42% penetration rate in the insurance sector offers greater penetration potential when compared to the global average of 6.2%. The country’s insurance market is expected to quadruple in size over the next 10 years from its current size of $60 Bn.
With demographic factors such as growing middle class, young insurable population and growing awareness of the need for protection and retirement planning, as well as the increased pace of digital transactions is turning the users towards digital insurance segment.
Although, the segment is majorly dominated by the offline giants like LIC and GIC, the online players like PolicyBazaar, PaisaBazaar, Coverfox and BankBazaar among others have been able to create a niche for themselves. All in all, the opportunity is ripe and market is still nowhere near saturation.
[The development was reported by ET.]