PhonePe, a leading Indian fintech company backed by Walmart, has expanded its insurance offerings by introducing a new vehicle insurance plan for two-wheelers and four-wheelers. The company has partnered with multiple insurers to provide cost-effective online insurance alternatives for new vehicle buyers, challenging conventional dealership insurance plans.
Key Features of PhonePe’s Vehicle Insurance
The new insurance plan allows users to compare policies from multiple insurers and make purchases directly through the PhonePe app. According to the company, customers can save up to INR 4,000 on two-wheeler insurance and up to INR 40,000 on four-wheeler insurance compared to dealership prices. The “own damage cover” for two-wheelers starts at just INR 1.
Customization Options
Users can customize their preferred policy by selecting suitable add-ons after comparing plans from top insurers on the PhonePe app. This flexibility allows customers to tailor their insurance coverage to their specific needs.
PhonePe’s Insurance Expansion
This latest offering is part of PhonePe’s broader insurance portfolio, which includes life, health, and travel insurance. The company secured an insurance broking license from the Insurance Regulatory and Development Authority of India (IRDAI) in 2021. PhonePe’s CEO, Vishal Gupta, stated that the goal is to simplify the insurance buying process and make it transparent and hassle-free for users.
Broader Context: PhonePe’s Growth and IPO Plans
PhonePe is preparing for an initial public offering (IPO) after reporting significant growth. The company posted an adjusted profit after tax of INR 197 Cr in the financial year 2023-24, turning profitable before ESOP costs. As part of its expansion beyond fintech services, PhonePe has ventured into insurance broking, wealth broking, digital commerce, and other areas.
The Indian insurance market is projected to reach $228.67 Bn by 2025, growing at a CAGR of 4.85%, according to Statista. PhonePe’s move into vehicle insurance positions the company to capitalize on this growing market while enhancing its service portfolio for users.
