Cashfree’s insurance payments automation solutions are used by leading insurance providers including Kotak Life, Oriental Insurance, Acko General Insurance, and aggregators such as Turtlemint and InsureMile among others
Cashfree plans to help 5000 insurance businesses automate premium collection, claim settlement, agent commission payouts and more by March 2021
With the launch of the insurance suite, Cashfree’s goal is to help the insurance industry expedite claim settlements by leveraging on the power of API banking
Cashfree, India’s leading business payments platform, has announced the launch of a suite of payments products, for insurance companies, web aggregators, brokers and TPAs, which allows easy policy premium collection, claim settlement, payouts to agents, hospitals and other intermediaries.
Cashfree has pioneered comprehensive insurance payments management with an integrated collection and disbursal approach. At present, Cashfree’s solutions are used by many major insurance businesses including the likes of Kotak Life, Oriental Insurance, Acko, Digit and web aggregators such as Turtlemint, InsureMile, Instabima to name a few.
The Insurance Suite by Cashfree includes payment solutions such as:
Payouts – Facilitates instant claim disbursals to insured along with instant payouts to intermediaries including hospitals, agents etc. Using Cashfree’s API all payouts can be triggered directly from the insurer’s bank account via IMPS or UPI
Bank Account Verification – Allows API verification of policy holder’s account number
Collection solutions like Subscriptions via e-mandate – Recurring premium collection by allowing insurers to auto-debit policyholder’s accounts
QR Codes and ePOS – For agent-based collection of premiums
Instant Refunds – If a policy is not approved by the insurer
Akash Sinha, CEO & Co-founder of Cashfree said, “The machinery of insurance is made up of multiple moving parts – insurers, hospitals, brokers, agents, web aggregators, and other third parties. The operational structure is changing. Unrestricted movement of funds becomes essential as it can directly relate to people’s wellbeing, restoration of business continuity, and property damage and more.”
“With our insurance suite, we intend to offer a comprehensive payment platform that helps insurers, web aggregators and related businesses not only manage collections but also speed up disbursals while enhancing overall funds management efficiency and user experience. Our goal is to provide flawless experiences and unparalleled services to the entire industry, including insurers, aggregators, TPAs and brokers while helping beneficiaries get access to the funds in the least amount of time possible,” he added.
Insurers, web aggregators and brokers can integrate Cashfree’s Insurance Suite with their bank account and initiate direct disbursals, instantly upon claim settlement approval. Similarly, Cashfree’s Marketplace Settlement can be used to split the received funds with the intermediaries.
According to a recent report by JM Financial, the market size of online insurance businesses in India is currently pegged at ₹ 1.1 trillion ($15 billion). Online insurance sales for businesses in a nascent stage in the country are likely to grow at a CAGR of 13 percent to become a ₹ 2.6 trillion ($37 billion) opportunity by 2025. This growth is likely to come from the increasing share of online policy distribution by web aggregators, taking the web aggregator market from an estimated ₹4.5bn ($65 million) in FY19 to ₹ 38.5 billion ($550 million) by FY25F growing at a CAGR of 43 percent.
Cashfree recently launched its Instant Settlement feature, which helps businesses access funds within 15 minutes of payment capture via its payment gateway as compared to the industry standard. The feature helps online businesses with increased working capital availability and has reportedly seen rapid adoption.