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Bite-Sized Health Insurance: Key To Bump Up Insurance Penetration Percentage?

Zopper Team Industry Talk February 21st, 2024
bite-sized insurance focuses on providing essential protection against risks at a fraction of the cost.

Flight delays or damaged electronics shouldn’t have to cost you an arm and a leg. A large percentage of Indians are not covered by travel insurance or any kind of insurance for that matter. India is a nation of close to 1.5 billion people, yet insurance penetration stands at a mere 4.2% - why is that? Although lack of insurance awareness is a dominant factor, some elements come into play here; trust deficit, improper knowledge about insurance products, bridging the tech enabler divide and inaccessibility to purchase mediums. Let’s not forget the economic reach of grassroots India. For many affordability of insurance premiums is a concerning issue but what if one can get limited coverage for a pocket-friendly price? In this context, the concept of bite-sized insurance emerges as a potential game-changer, offering a solution to increase insurance penetration rates and provide affordable coverage to a broader population. But first, let’s fully comprehend what is a bite-sized insurance.

Understanding Bite-Sized Insurance

Bite-sized insurance refers to policies that offer scaled-down coverage at affordable premiums, catering to individuals with limited financial resources. Unlike traditional insurance plans, which often come with hefty premiums and extensive coverage, bite-sized insurance focuses on providing essential protection against risks at a fraction of the cost. Take booking a flight for example, or purchasing a home appliance. The nominal insurance premium charged at the checkout window is the sachet insurance or as many refer to it, bite-sized insurance. It may sometimes be as high as ₹450 or as low as ₹1, depending on the product. Consider this policy as an amuse-bouche to whet your risk appetite before committing to a full-sized insurance policy. Served in a small, more consumable form, bite-sized insurance is more appealing to consumers for its low price bandwidth and limited time frame. Zopper is a leading facilitator in this segment helping industry leaders seamlessly integrate innovative InsurTech solutions into their products to optimise customer experience and embed affordable insurance policies designed to meet their specific needs.

How Bite-Sized Insurance Can Bump Up Insurance Penetration?

A question: What are the two biggest pain points of an Indian consumer? One of the primary barriers to insurance penetration is affordability. As per the OECD Economic Outlook, projected real GDP growth was anticipated to decelerate to 6.3% in FY 2023-24, followed by a further decrease to 6.1% in FY 2024-25. With slower growth and inflation expectations, Indian consumers will be mindful of their expenses and will look more favourably at affordable premiums. Bite-sized insurance presents a compelling solution to this challenge. By offering affordable premiums and simplified coverage options, it makes insurance accessible to a broader segment of society, including low-income individuals and families. This not only expands the customer base for insurance providers but also enhances financial security and resilience among vulnerable communities.

In addition to affordability, accessibility is another crucial factor influencing insurance penetration. With the boost of InsurTechs, companies can leverage innovative InsurTech solutions to reach underserved markets and offer bite-sized insurance products tailored to their needs. The way a product is sold is equally important as what is being sold. The pandemic spurred e-commerce adoption, leading to the onboarding of 30-40 million buyers online in 2020-21. As grassroots India increasingly adopts online marketplaces, the idea of committing to these bite-sized insurance products becomes acceptable to them. There are two reasons for this - convenience of purchase on the same page and an existing sense of trust with the platform. Additionally, bite-sized insurance policies not only reduce distribution costs for insurers but also enhance the overall customer experience, making insurance more accessible and user-friendly.


Bite-sized insurance holds the potential to move us much closer to the ‘Insurance for all by 2047’ vision. By offering affordable premiums, simplified coverage options, and leveraging technology for distribution, insurers can extend coverage to underserved populations and enhance financial security for millions of individuals and families.

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