PhonePe Rolls Out Initiative To Drive More Accessibility In Insurance Cover

SUMMARY

PhonePe has launched a pre-approved term life insurance feature to increase accessibility, requiring no proof of income at the time of purchase.

The initiative aims to bring underserved customers into the term life insurance market, targeting over 30 million individuals who previously lacked income proof. Eligible users include merchants, self-employed individuals, and gig workers.

Founded in 2016, PhonePe is a major player in India's digital payments sector, with over 550 million users and more than 270 million daily transactions. This initiative aligns with their participation in the Reserve Bank of India’s digital currency pilot.

Fintech major PhonePe has rolled out a pre-approved term life insurance feature to make insurance coverage more accessible to the netizens.

According to the company, the new initiative does not require the proof of income at the time of policy purchase.

Vishal Gupta, CEO at PhonePe Insurance Broking Services, said, “This launch aims to bring previously under-served customers into the term life insurance net by making the products more accessible and affordable to Indians across various socio-economic strata.”

PhonePe, in collaboration with its insurance partners, identifies users eligible for the pre-approved term insurance process. It has developed these indicators while complying with underwriting principles set by regulators, the company added.

The fintech company is targeting over 30 Mn individuals who previously could not avail term insurance due to lack of income proof.

PhonePe users, including merchants, self-employed individuals and gig workers without formal salary or income proof, can now access term insurance products on the platform.

Founded in 2016, PhonePe claims to have become a major player in India’s digital payments sector. The company’s app boasts over 550 Mn registered users and a merchant network of more than 40 Mn.

The platform processes more than 270 Mn daily transactions with an annualised total payment value of more than $1.6 Tn.

This comes at a time when a report said that PhonePe has been one of the fintech giants opting to join the Reserve Bank of India’s digital currency pilot.