ZestMoney to provide insurance plans to customers in tier 2 and tier 3 cities
Insurance firms will work with ZestMoney to create tailor-made insurance schemes to offer alongside its Buy Now Pay Later (BNPL) products
ZestMoney, a fintech startup has received a corporate agent license from the Insurance Regulatory and Development Authority of India (IRDAI), with an aim to provide sachet-sized insurance for mainly tier-2 and tier-3 customers. This was done, as about 70% of its 11 million registered users are from outside metro cities.
Company to finalise agreements with nine insurance companies
Moneycontrol.com had reported that the company is now in talks with 12 insurance firms and would formalize the final agreements with nine.
The insurance firms will work with ZestMoney to create tailor-made insurance schemes to offer alongside its Buy Now Pay Later (BNPL) products. In return, the company will receive a distribution fee from the insurance players.
The Bengaluru-based company, which counts Goldman Sachs, Quona Capital, Xiaomi, Alteria Capital as investors, has been largely focused on the BNPL credit offering space.
With this, the company would join the likes of Policy Bazaar, Amazon Pay, Paytm Money, and Lendingkart that offer insurance online.
Insurance broker Policybazaar is the leader in the digital insurance space marketplace with a 93.4% market share in terms of the number of policies sold. Amazon Pay secured the corporate agent license in 2019, and Paytm got the insurance broking license in March 2020 after giving up its corporate agent license.