Ep #15 | Ankit Kamra, Simplifying Business Insurance in India: Covrzy's Mission to Protect the 'Growth Engine' of New Bharat

In our latest episode of "Policy in Wonderland," we had an insightful conversation with Ankit Kamra , co-founder and CEO of Covrzy , an innovative insurtech platform in India. This episode delved into the intricacies of the Indian MSME (Micro, Small, and Medium Enterprises) insurance market, highlighting its potential, challenges, and the cultural nuances that shape it, and how Covrzy is changing this market.

TL;DR

The Indian MSME insurance market presents a vast and largely untapped opportunity. By addressing the key challenges of awareness, trust, and accessibility, platforms like Covrzy are well-positioned to lead the way in this burgeoning sector. As India continues its journey towards becoming a $10 trillion economy, the role of innovative insurtech solutions will be pivotal in ensuring that MSMEs are adequately protected and can contribute to the nation's growth.

For more insights and detailed analysis, you can connect with Ankit Kamra here on LinkedIn and explore Covrzy's offerings on their website.

The Indian MSME Insurance Landscape

The MSME sector in India is a vital component of the economy, contributing 37% to the GDP. Despite this, nearly 85% of MSMEs remain uninsured, presenting a significant opportunity for growth in the insurance market. The total addressable market for MSME insurance is estimated to be between $1.8-2.1 billion, with projections indicating substantial growth as India progresses towards a $10 trillion economy by 2030 (Boston Consulting Group).

Key Challenges in MSME Insurance

Ankit Kamra emphasized several critical challenges that hinder the penetration of insurance among MSMEs:

1. Awareness and Accessibility: Many business owners are unaware of the available insurance products and where to purchase them. The complexity and time-consuming nature of the insurance buying process compound this lack of awareness.
2. Trust and Affordability: A significant pain point for MSMEs is the lack of trust in insurance providers and the perceived high cost of insurance products. This distrust is often due to partial information provided by insurers and the generic nature of off-the-shelf products that do not meet the unique needs of individual businesses.
3. Regulatory Environment: The regulatory landscape in India is evolving, with the Insurance Regulatory and Development Authority of India (IRDAI) extending the experimental period for the regulatory sandbox to 36 months. This is expected to benefit insurtech companies by allowing more innovative products to enter the market.

Covrzy: Simplifying Business Insurance for India's Growth Engine

Covrzy aims to address these challenges by providing a seamless and transparent insurance buying experience. Their platform focuses on:

• Customized Solutions: By working closely with underwriters, Covrzy offers tailored insurance solutions that cater to individual businesses' specific risks and needs.
• Partnerships: Covrzy leverages partnerships with established B2B platforms and other entities to bundle insurance products with core services, enhancing accessibility and trust among MSMEs.
• Digital Acquisition: Recognizing the high cost of offline customer acquisition, Covrzy focuses on digital channels to reach MSMEs, making the process more efficient and cost-effective.

Cultural Insights

Understanding the cultural context is crucial for anyone looking to engage with Indian companies. Ankit highlighted the importance of trust and relationship-building in the Indian business environment. Collaborating with trusted partners and providing clear, localized content can significantly enhance the acceptance of insurance products among MSMEs.

Kamra also pointed out a generational shift occurring in India. With the average age in the country being around 28-29, a new generation of tech-savvy and risk-aware business owners is emerging. This demographic change is likely to drive increased adoption of insurance products among MSMEs in the coming years.

Future Outlook

The non-life insurance sector in India is expected to grow at a compound annual growth rate (CAGR) of 15% over the next 15 years, driven by increasing awareness and regulatory support. With initiatives like the National Ayushman Bharat mission and the increase in foreign direct investment (FDI) limits, the insurance market is poised for significant expansion.

Kamra left us with a powerful message: insurance doesn't have to be complex. By breaking down complex terms into simple, understandable language, Covrzy aims to demystify insurance for MSME owners, ensuring they feel informed and empowered rather than cheated or bewildered.

References:

?? Navigating Challenges, Seizing Opportunities: The Rise of Covrzy in Business Insurance

?? India's non-life insurance industry forecast to grow 14-15% for next 15 years

?? Insuring India

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