DBT Bureau
Pune, 21 Oct 2024
Freo, India’s digital finance app, has obtained the Corporate Agent license from the Insurance Regulatory and Development Authority of India (IRDAI). This achievement enables Freo to provide its 25 million registered users with a selection of curated insurance products in collaboration with leading insurance providers.
With its new license, Freo is expanding to include insurance products alongside its existing services like UPI, loans, savings, etc. Following its profitability milestone, this move strengthens Freo’s position as a one-stop solution, offering customers a complete suite of digital financial products.
From Underinsured to Fully Covered: Vision 2047
The insurance penetration in India stands at around 4.2%, compared to the global average of 7%, showing that a large part of the population remains uninsured or underinsured. This gap is partly due to the mass perception that insurance is complex and only necessary for health or life coverage. Adding to this, most consumers are unaware of or do not see the need for insurance products, viewing them as an extra expense rather than essential protection.
The industry also suffers from a lack of personalized options coupled with a lot of mis-selling and low trust, which further discourages people from exploring insurance as a viable safety net.
However, with the push & collaborative stance between industry & the regulator’s vision of ‘Insurance For All By 2047’, India’s insurance sector is projected to grow at an average rate of 7% in the next few years (three times the global growth rate).
Unique Yet Affordable: Freo’s Insurance for Every Need
Freo is introducing a diverse range of affordable and easy-to-understand insurance products, specifically tailored for its 25M+ users across 1200+ cities. These offerings are designed to mitigate the financial risks that users face in their daily lives.
The insurance covers are designed to meet various needs, including specialized plans for women’s health, top-up options on existing health policies to ease financial burdens and coverage for common diseases like malaria and dengue. Freo also plans to offer protection against cyber fraud, job loss, and more—all crafted to provide extensive coverage without burning a hole in the pocket.
“At Freo, we believe insurance should be simple, trustworthy and within everyone’s reach. We’re committed to offering a seamless experience through a fully integrated digital platform aimed at delivering more value to Freo customers.” said Kunal Varma, Co-founder & CEO, Freo
