On December 7, 2020 ICICI Lombard General Insurance Limited partnered with Plum Benefits Private Limited to co-create India’s first technologically backed group health insurance products.
Aim– To offer employers and employees flexibility, transparent pricing, and exceptional healthcare experience.
Points to be Noted
ICICI Lombard and Plum, with use of the latest technologies, aims to solve 4 major areas of group health insurance namely, real time pricing, onboarding, policy management and claims.
Benefits of the Partnership
The following are the benefits of the partnership. Each of the 4 products mentioned below are industry-first for corporates.
i.Automated processes Built to reduce the time to receive price estimates
- ICICI Lombard and Plum in collaboration, have built automated processes around data cleaning, validation, fraud detection, and underwriting.
- This will reduce the time taken by a company to receive price estimates for a group health insurance policy from 5 days to a few minutes.
- This will minimise the overall time from an average of a month to less than an hour.
ii.Digital onboarding process
- ICICI Lombard and Plum have jointly worked to ensure that employees are onboarded immediately upon purchase of group policy.
- Employees are taken through a digital onboarding process in which they understand insurance benefits in simple English (rather than a long legal document).
iii.Activate Health Insurance of employees
- ICICI Lombard and Plum have built a real-time endorsement product that enables organisations to activate the health insurance of employees upon they join the company.
- In other words, the employees need not have to wait to get a health ID card anymore.
iv.Building an online claims submission tool
- ICICI Lombard and Plum are building an online claims submission tool for employees along with a real time tracking system.
- This will provide a seamless claims experience, that is one of the most crucial elements of any insurance.
i.More than 100 companies have been on boarded by ICICI Lombard and Plum jointly within the 1st 6 months of the launch.
ii.These companies include startups like Fampay, StayAbode, Posist, Jiny, Revv and companies like Lambda Group, Sunidhi Group
Statistics Regarding Health Insurance
i.The penetration of health insurance across India is low, with 0.29% of GDP(Gross Domestic Product) being spent on the health sector.
ii.Only 2% of the total healthcare expenditure is currently covered by insurance providers.
iii.Group health insurance market, covers about 15% of the overall insured population and witnesses 25% year over year growth.
iv.India’s group insurance health market is forecasted to grow to Rs 100,000 crores by 2025 and will also see an increase in innovative insurance products that are not available in advanced markets.
Recent Related News:
i.HDFC (Housing Development Finance Corporation) Life and HDFC Ergo joined hands to launch a combi insurance product ‘Click 2 Protect Corona Kavach’ which offers a complete financial protection package in the current pandemic environment. This policy will provide all the benefits and features of HDFC Life’s Click 2 Protect 3D Plus and HDFC Ergo’s Corona Kavach policies.
ii.On November 23,2020 NSDL Payments Bank Limited, digital-first payments bank entered into partnership with HDFC ERGO General Insurance Company Limited to offer a customised, affordable and whole range of general insurance products to its customers through NSDL Jiffy, mobile banking application.
About ICICI Lombard General Insurance Co. Ltd:
HeadQuarters– Mumbai, Maharashtra
Managing Director(MD) and Chief Executive Officer(CEO)– Bhargav Dasgupta
About Plum Benefits Private Limited:
HeadQuarters– Bengaluru, Karnataka
Co-Founder & CEO– Abhishek Poddar