SafeTrees Digital Platforms are changing the MSME landscape and Risk Mitigation eco-system in India
The MSME segment in India contributes nearly 32% of GDP and is the backbone of the economy. Currently, most insurance purchases by MSME segment are undertaken through a complex offline process due to the lack of full-service digital platforms to ease the buying process and it’s estimated that insurance penetration levels in MSME segment is ~5% only. Finally, the wait is over as MSMEs and startup companies will now able to buy insurance products, such as fire or burglary insurance by choosing from multiple insurance providers on a digital platform. Post making the payment, the policy will be issued instantaneously. SafeTree has developed a comprehensive digital platform wherein MSME and Start-up clients can review quotations from multiple providers and buy their policy within minutes, according to Mr. Vikas Anand, CEO – SafeTree.
“The seamless buying experience with minimal data requirements, instant policy issuance and complete service ecosystem is our value proposition” added Mr. Anand. Safetree provides a complete ecosystem to manage all MSME insurance requirements from providing competitive quotations, risk advisory, underwriting, policy servicing and claims settlement. We would like MSME business owners to focus on their core business and outsource their insurance related matters to us, as per Mr. Anand. Mr. Anand anticipates following trends regarding insurance in Indian MSME and Start-up segment – Covid-19 brought the global economy to a standstill, and India was not spared by its devastating impact both in terms of loss of humans lives and the carnage unleashed in the economy. The pandemic has brought about a shift in the way businesses will be run in the future. We are already witnessing increased complexities in the business working environment due to business interruptions, increased exposure to various liabilities and cyber risks. Business owners are going to take more precautions in terms of insurance coverage against above losses. Hence, the industry is likely to see robust demand for increased insurance coverage within the segment. MSME segment is looking for value added services from insurers/insurtech players. New players are integrating wellness programs on their platforms for Corporates having Group Mediclaim Policies. Today organizations are looking at industry players to go beyond just ‘coverage’.
As per a worldwide MSME Insurance survey report conducted by an International Consulting firm, over 93% of MSMEs surveyed expressed openness to new/different services from their insurer. MSMEs have indicated an appetite for value focused offerings that go beyond traditional coverages and encompasses non-traditional, non-insurance services. In this survey, MSMEs were asked which services they would they use if offered by their insurer, the top five services were cybersecurity (21%), advice on systemic risks (21%), general risk management (18%), legal advice (18%), and financial advisory (16%). Going forward, many MSME/start-up players will regard advice more important than price. Despite the traditional view that price is the number one driver for buying insurance, we are going to see to shift away from traditional practices.
Internationally growing number of MSME organizations are beginning to purchase insurance policies through digital platforms. While the preference for in-person interactions will remain the most preferred option, there is a significant increase in technology adoption within this segment. As per a recent global survey, nearly 27% of world-wide MSME participants had a preference for using digital platforms for purchasing insurance products. Similar adoption of technology is expected in India within MSME segment. Mr. Lalit Sharma, National Head – Corporate business informed about SafeTree’s Corporate Risk Profiler called Corporate Janampatri that provides a high-level assessment of an organization’s insurance needs in a minute. Mr. Sharma added that we want to improve the overall risk mitigation environment for the MSME segment by curating various awareness programs which include monthly newsletters and industry/product specific surveys. Mr. Anand believes that by providing comprehensive insurance services on a digital platform will increase the insurance penetration and be a catalyst to drive India’s economy to greater heights.
About SafeTree.in
SafeTree is a registered trademark of A2V Insurance Brokers Private Limited, a licensed broker by IRDAI. The main objective of the firm is to protect individuals and corporate from financial risks through new, simple and innovative insurance solutions. They are currently developing tools which will change the buying of insurance products from reactive to proactive.