Indian e-commerce giants Flipkart and Amazon India are set to enter the country’s promising Rs 35,000-crore insurance market. According to a Business Standard report, both companies wanted to roll out insurance products in the first half of the year, but tweaking their businesses to comply with the new foreign direct investment (FDI) norms in e-commerce took them some more time.
Both companies are getting senior heads from the insurance space to understand the sector and are looking to tie-up with insurance partners. By the end of this year, insurance could be the biggest vertical for these firms outside of shopping as their interests would range from general, life, auto and travel to mobile phone safety insurance.
Amazon India spokesperson told Business Standard that they are pleased to receive the corporate agency licence from the insurance regulatory body, and that the company is looking at insurance solutions that provide a convenient and seamless experience for customers.
“At Amazon Pay, we continue to work customer backwards and focus on providing value to customers wherever we see an opportunity, insurance being one of them. We are exploring the landscape in India and are looking at insurance solutions that provide a convenient and seamless experience for our customers,” Amazon India spokesperson said.
Last year, in partnership with Bajaj Allianz General Insurance, Flipkart started offering customised insurance solutions for a ‘Complete Mobile Protection’ programme for all mobile brands being sold on its platform.
Amazon led a USD 12 million round last year in online insurer Acko General Insurance. This month, Acko General Insurance raised USD 65 million from Flipkart co-founder Binny Bansal, RPS Ventures led by Kabir Misra (former Softbank Managing Partner).
Payment companies including Paytm and Mobikwik have plans to get into online insurance. Last year in February, Paytm’s parent company One97 Communications had created two new entities to cater to insurance — Paytm Life Insurance Corporation Ltd and Paytm General Insurance Corporation Ltd.
After launching accident insurance in 2018, earlier this year, MobiKwik partnered with ICICI Prudential Life Insurance Company to offer group micro insurance product.
“With these micro insurance products and other personalised offerings in the future, we are confident of disrupting the life insurance market. We are also trying to address the challenges around product relevance for the customer. MobiKwik will lead the way in driving adoption of life insurance products in the real India with its customised portfolio. Digital offering is the key here as we are able to offer insurance products to millions of our users,” said Upasana Taku, co-founder at MobiKwik.