Latest news with #BimaPayFinsure
&w=3840&q=100)
Business Standard
3 days ago
- Business
- Business Standard
BimaPay targets Rs 5,000 cr corporate insurance premium financing by FY30
The company will cover all sectors including IT, logistics, healthcare, manufacturing and more, offering products such as group medical, fire and group personal accident insurance Aathira Varier Mumbai Listen to This Article BimaPay Finsure, an insurance premium financing company, has ventured into the corporate insurance segment and aims to finance over Rs 20 crore worth of premiums by the end of FY26. Currently focused on retail insurance, it targets Rs 5,000 crore overall disbursement by FY30. The company will cover all sectors including IT, logistics, healthcare, manufacturing and more, offering products such as group medical, fire and group personal accident insurance. According to BimaPay Finsure, upfront insurance premiums can cause cash flow issues for many businesses, leading some to delay or reduce coverage. The company plans to charge these entities an interest
Time of India
4 days ago
- Business
- Time of India
Fintechs tap rising health insurance costs with EMI-based premium financing for corporates, individuals
As health insurance premiums steadily rise, a growing crop of fintech startups is stepping in to offer relief, not by slashing costs, but by spreading them out. Premium financing, once a niche product, is now gaining traction in the insurance ecosystem. A facility once available only to individuals is now being extended to corporates, allowing them to pay hefty premiums through equated monthly installments (EMIs). At the heart of this new wave are firms like BimaPay Finsure , Finsall among others which are carving out a unique space between insurers, lenders, and underserved customers. These fintechs offer short-term financing for health insurance premiums directly at the point of sale, with interest rates ranging from 16% to 20%. Earlier limited to individuals, the product is now being extended to corporates as well. These platforms partner with insurers to offer 'Buy Now, Pay Later' for premiums. 'The corporate insurance premium market in India is vast, with many businesses needing to secure group health, fire and lack of financing options makes it difficult for many MSMEs to afford large upfront payments,' said Hanut Mehta c-founder and CEO BimaPay Finsure. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like เทรดทองCFDsกับโบรกเกอร์ที่เชื่อถือได้| เปิดบัญชีวันนี้ IC Markets สมัคร Undo Market players see potential coming from the annual health insurance premium market of around Rs 60,000 crore, of which nearly 15% or Rs 9,000 to Rs 10,000 crore, could be up for financing, according to estimates by industry players. Health insurance premiums have been rising consistently due to surging healthcare costs, which has been hurting affordability and penetration. Of the Rs 1 lakh crore collected in health insurance premiums last year, group business accounted for the largest share at 51.68%, followed by individual policies at 38.55%, and government schemes at 9.77% Live Events These fintechs do not lend themselves, but partner with NBFCs and banks, earning through a spread between the hurdle rate, which is 12–17% charged by lenders and the end customer's rate, which is 18–20%. 'We're tech facilitators,' said Mehta. 'We comply with RBI's digital lending norms but don't come under direct regulatory oversight. We don't do direct acquisition as we are embedded in the insurer's ecosystem.' Though these loans are unsecured, fintechs have an unusual mitigation tactic where the policy itself acts as collateral. 'If an EMI is not paid, the insurance policy can be cancelled,' said Prabal Khanna co-founder Finsall, adding that the corporate segment is gaining traction. 'That becomes a very strong incentive for the customer to repay, because otherwise they lose their cover, and they also risk a hit on their credit score.' Corporates typically make a 20% down payment, and the rest is financed over 9–20 months, depending on the policy tenure. On the corporate side, policies financed can reach Rs 1 crore, with an average size of Rs 10–15 lakh. On the individual side, the average ticket size in the retail segment is Rs 50,000, though loans can go up to Rs 7 lakh. For instance, currently, BimaPay, for corporate financing, has onboarded two insurers and are piloting with a Rs 20 crore disbursement goal.
