Page 16 - Insurance Times February 2021

Private Life Insurance

Digit Insurance 1st unicorn Digit expanded business during the level of the buyers to create term

of this year pandemic launching new products products. The problem with Saral
Jeevan Bima is that there are no filters
including a fixed-benefit cover for
Digit Insurance is the latest Indian Covid-19 under the insurance allowed, so the premium will be high
unicorn. The company was valued at regulator's sandbox initiative. The as the risk is high."
$1.9 billion after its latest fund-raise of largest non-life company in the Experts say Saral Jeevan Bima may
Rs 135 crore from existing investors. country, the 100-year-old New India work as an entry-level term plan. The
The insurer raised funds as growth Assurance has market capitalisation of current term plans usually offer a
capital to meet solvency margin $3 billion. minimum sum assured of Rs. 25 lakh
requirements following a 32% growth and a term of at least 10 years.
in the first nine months as against a Saral Jeevan Bima costs

0.1% growth for the industry. twice as much as a normal "Today, sum assured of Rs. 5 lakh isn't
available in the market. Some parts of
The private insurer had raised its first term plan the costs for distribution, policy
external round of funding from three issuance and medical underwriting are
growth Avestors A91 Partners, Faering IRDAI in October had mandated all life fixed. So, enabling a Rs. 5 lakh product
Capital and TVS Capital in January insurers to launch Saral Jeevan Bima will be more expensive proportionately
2020. This investment gave them a plans. than a Rs. 25 lakh plan. But from the
10% stake in the nonlife firm and had Edelweiss Tokio Life Insurance Co. Ltd Rs. 5 lakh sum assured point of view,
valued the company at around $900 has launched India's first standard these plans may not be expensive as
million. The latest round of funding term insurance plan called Saral Jeevan there is no alternative available," said
increases their stake by 1%. A holding Bima, which is aimed at first-time Abhishek Bondia, managing director
company, where Goyal and Fairfax are buyers and those who may not have and principal officer, SecureNow.in, an
key investors, holds 88%. easy access to existing term plans. insurance broker.

Although in a conventional industry, Edelweiss Tokio's Saral Jeevan Bima However, an individual with good
Digit has positioned itself as a new-age plan offers a sum assured of Rs. 5 lakh- educational qualification and job would
insurer by using technology to simplify 25 lakh. Individuals can choose the pre- find regular term insurance plans
the process for customers like mium paying term starting from five to cheaper than Saral Jeevan Bima.
smartphone-enabled self-inspection 40 years.
and audio claims. The private Explaining the reason behind higher Life insurers bet on guar-
insurance company was launched in pricing, Mahavir Chopra, founder,
2017 promoted by insurance Beshak.org, a research platform for anteed-return products
professional Kamesh Goyal in insurance users, said: "Insurers use Private life insurers are seeing good
partnership with Canadian billionaire demography, income category, place opportunity in guaranteed income
Prem Watsa's Fairfax Holdings. of residence, occupation and education products. These products bundle life

The Insurance Times, February 2021