Toffee Insurance: Insurance plans especially designed for millennials
Just as technology has impacted finance, now it is set to have similar impact on insurance industry too. New, technology savvy players are entering the insurance sector, bringing the full force of their innovative, disruptive, opportunity-laden power. One of them is Toffee Insurance.
“Insurtechs” are technology-led companies that enter the insurance sector, taking advantage of new technologies to provide coverage to digital savvy customer base. The giants of insurance still rely on paperwork and they work using legacy software which are employee driven rather than customer driven. Insurtech companies are generally more responsive to customer needs and are willing to take more risk and innovate as compared to established insurance companies like Oriental, New India Assurance, LIC of India, ICICI Prudential, SBI Life Insurance, Max Life Insurance.
Insurance is a 70-80 billion dollar industry in India even as Insurance penetration is around 3.42 percent. This is far below the global average of 6.2 percent and indicative of a very large untapped customer base.One such insurtech disrupting the Insurance sector is Toffee Insurance.
ORIGIN OF TOFFEE INSURANCE
In a country largely uninvested in insurance even against catastrophic events, Toffee Insurance, a fully digital insurtech startup is attempting the unthinkable. The reason people do not buy insurance online is most companies are still selling the products that are designed for offline channels. They’re just doing it online. Millennials do not understand such complex schemes. They are looking for simple offerings. They want buying of insurance to be as easy as buying of toffee. That’s where toffee comes in.
Founder:Nishant Jain and Rohan Kumar
Funding raised: $100000 angel round
Insurance plans especially designed for millennials
According to Nishant Jain, the co-founder of Toffee, along with Rohan Kumar, insurance for everyday is an untapped market. Out of the 50 million Indians capable of receiving insurance services on a digital platform, the startup targets the youth aged 25 while the insurance buyer of traditional insurance plans is around 35.
“We are trying to get young people, those not really interested in being insured to buy insurance and make it a habit. The youth have no fear, but they do have other risks in life, while commuting on a motor bike, or losing a bag or a tab or phone, or like spraining an ankle during zumba or pilates.”
These are events of less catastrophic proportions and not likely for traditional insurance policies to cover.
What makes toffee different is its ability to analyse, predict and customise product offerings that reduce risk for young demographic. They work with major insurance companies to debundle the comprehensive products and create new ones whenever possible.
The entire process is quick and easy just tap on a button and enter your name, contact details, date of birth and then name a nominee. That’s it – you’re done. All you have to do then is to make a payment at which toffee redirects you to insurance provider’s website to complete the transaction. Toffee claims buying insurance products on its platform take less than 90 seconds and simple claims are processed in under two hours via a completely digital interface.
Small and ticket size insurance products
The USP of toffee insurance is bite size insurance products designed for millennials for everyday moments. Let’s have a quick look at unique toffees:
- Dengue Insurance
Health insurance to cover all the dengue related expenses.
Annual premium: ₹682
Policy Duration: 1 Year
Insured by: Apollo Munich
Coverage : Hospitalisation Upto ₹100,000 covering medicines and diagnostic tests
- International Travel Insurance
Comprehensive international travel insurance for all countries.
Annual premium: ₹345+ premium
Policy Duration: 1-180 Days
Insured by: HDFC ERGO
Coverage: Medical expenses upto $50,000, emergency cash upto $500, Hotel Accomodation and many more..
So, next take insurance at just ₹345 and travel safe!
- Daily Commute Insurance
Insurance for accidental injuries while commuting any vehicle.
Annual Premium: ₹430
Policy Duration: 1 year
Insured by: Apollo Munich
Coverage: Death/Disability upto ₹100,000, OPD upto ₹5000, Hospitalisation upto ₹95000
These are among the few toffees provided by toffee insurance.
No doubt, these are unique offerings and different from traditional plans.
Unbundling of offerings to make them cheaper
Toffee has tied up with traditional insurance companies to create these products and is essentially setting up a future customer base for these larger companies. It has license from IRDA to act as corporate agent, and works with nine major insurance providers and underwriters such as Apollo Munich and Ergo, to provide these tailor-made policies. It debundle the comprehensive products and make them new.
This unbundling of insurance offerings makes the plan cheaper and simpler. “By unbundling you’re able to cut down the cost involved, instead of ₹600, you had spend ₹10000, if you were getting comprehensive cover” says Kumar.
For example: If you’re visiting Delhi in August/ September and are worried about catching Dengue fever, you can chose to pay ₹682 as one time cost to toffee insurance knowing it would cover diagnostic test, medicine and other fees upto 1 Lac, if you get disease. If you don’t have health insurance and don’t want to pay that much every month, it is a simple way of adding the protection.
Use of artificial intelligence
Currently, toffee insurance doesn’t use Artifical Intelligence. By 2019, toffee will integrate with various machine learning enabled services to personalise and recommend policies and approve the claims instantly.
Vani Kola rightly said, “Insurance is highly under-penetrated in India, and it needs product innovation to reach masses. The mission Rohan and Nishant are on, to create simple and small ticket size insurance products and distribute them in a very contextual way, has huge potential to drive the mass adoption”.