PhonePe Introduces Pre-Approved Life Insurance Package : Report

In a bid to make life insurance coverage accessible, PhonePe, the fintech firm, has introduced a pre-approved life insurance package for its users.

The insurance package does not require income proof when the policy is purchased as per Inc42. The move is reportedly aimed at targeting more than 30 million individuals who cannot afford insurance as they lack income proof.

The development comes at a time when PhonePe has opted to join RBI’s digital currency pilot.

The insurance package will be rolled out in collaboration with PhonePe’s insurance partners. The Fintech firm along with its insurance partners will identify users eligible for pre-approved term insurance process.

The company stated that these indicators for approving insurance are in compliance with underwriting principles set by regulators.

Vishal Gupta, CEO at PhonePe Insurance Broking Services, said, “This launch aims to bring previously under-served customers into the term life insurance net by making the products more accessible and affordable to Indians across various socio-economic strata," reported Inc42.

PhonePe, launched in 2016, is one of the predominant players in India’s digital payments sector. It has more than 550 million registered users and a merchant network of more than 40 million.

PhonePe reported a 77% increase in its operating revenue to Rs 2,914 crore for FY23. It moved its domicile from Singapore to India back in October 2022.Its loss stood at Rs 744 crore for the year excluding expenses on account of employee stock options.

PhonePe reportedly has pumped more than Rs 1,000 crore as equity investment in its insurance unit, since it was licensed as per the Registrar of Companies.