Coalition customer loyalty services company PAYBACK is stepping into fintech through partnerships and offerings in insurance, apart from retail and travel. .
Coalition customer loyalty services company PAYBACK is stepping into fintech through partnerships and offerings in insurance, apart from retail and travel.
The company currently has partnerships with ICICI Prudential Life Insurance and HDFC Standard Life Insurance for life and health insurance. For health and general insurance, it has tie ups with CignaTTK Health Insurance and ICICI Lombard General Insurance .
The company is also set to announce a partnership with Religare Health Insurance Company for customised group health insurance.
“When we talked to our customers, we found out that many of them want to get insured but don’t know how to go about it. We wanted to address the problems of buying an insurance,” Ramakant Khandelwal, CMO, PAYBACK, said.
The business model of the insurance offering on PAYBACK will work on a commission basis,where the customer will be charged on buying the insurance. Currently, Khandelwal said that 90% of customers are renewing their insurances on the platform. Also, premiums being paid by customers increase periodically after every few years in case of health insurance and non-life insurance.
Khandelwal says this is because of the specialised insurance the customers will get. He says, the success of the business will depend on the renewal rate. The company will also charge the insurance providers on the platform. The company said it will utilise preference and buying behaviour data of their 100 million customers to offer customised insurance.
However, customers won’t be able to avail their PAYBACK loyalty points or earn new points on getting insurance.
“We are a loyalty and marketing platform and this goes into us being a marketing platform,” Khandelwal said.
However, PAYBACK customers, based on their data, will get customised insurance plans. PAYBACK members will get special features and premium price being 20% to 30% cheaper than regular offers. Policybazaar, Coverfox and Bankbazaar also offer insurance policies online.
By- Aniruddha Ghosh