Ratan Tata-backed fintech platform Upstox has announced its foray into the insurance distribution business. HDFC Life is among the first insurers to partner with Upstox and feature its term insurance plans on the latter’s platform.
With this launch, the company aims to revolutionise India’s insurance landscape by offering its users a simplified, transparent and customised experience of purchasing insurance in line with their needs, the fintech company said in a release.
Upstox planning to roll out health, motor and travel insurance
Upstox currently offers term life Insurance on its platform and is planning to roll out health, motor and travel insurance soon. The fintech major has traditionally been known for its offerings in stocks, F&O, and mutual funds, but the introduction of insurance marks a significant stride towards evolving into a comprehensive wealth-building platform.
Today, Upstox is a one-stop-shop for a wide array of financial instruments including stocks, IPOs, F&O, commodities, currencies, fixed deposits, P2P lending, government bonds, T-Bills, NCDs, gold, insurance and much more, the release said.
Also Read: YOUR MONEY: Find out how much life cover you need today
“Currently, the insurance penetration in India stands at just 4.2% with a considerable portion of the population still being dependent on traditional and agent-driven models to purchase policies. Along with that, there is a lack of awareness, overload of choices, heavy paperwork and complex jargon involved in the process of buying insurance,” the release said.
“Through its research, Upstox recognized that often users succumb to a one-size-fits-all approach; and opt for a term insurance plan without proper assessment. Upstox has thus set out to solve the gross mis-selling of insurance products and embarked on a monumental task of streamlining life, health, motor, travel insurance for its customers. By leveraging advanced technology and industry expertise, Upstox aims to simplify the insurance process – from identifying the top plans in each category to purchasing insurance and finally making the claim process smooth,” it said.
Kavitha Subramanian, Co-Founder, Upstox said, “We are thrilled to expand our offerings on Upstox and foray into the insurance distribution segment. We have recognized that navigating the insurance landscape is a daunting task. Customers are inundated with so many questions – which is the right plan, what should be the correct criteria to select a plan, how much insurance cover will be enough.”
“At Upstox, we understand these challenges, and we’re dedicated to helping our customers get answers to all of these without overwhelming them. Our aim is to help customers cut through the noise and help Indians Invest Right. We are constantly working towards making our platform simple, secure, fast, and intuitive,” she added.
Commenting on this collaboration, Suresh Badami, Deputy Managing Director, HDFC Life said, “We are pleased to announce our partnership with Upstox. This marks another stride towards realising India’s goal of ‘Insurance for All’ by 2047. We aim to utilise our distribution and digital capabilities to extend our insurance solutions to their entire customer base and enhance the value of this partnership.”