Neobank Freo Receives Corporate Agent License From IRDAI
With the addition of insurance products to its portfolio, Freo aims to enhance its current offerings, which include UPI payments, loans, and savings
Freo, a digital finance app, has secured a corporate Agent license from the Insurance Regulatory and Development Authority of India (IRDAI). This significant achievement enables Freo to provide its 25 million registered users with a variety of curated insurance products in collaboration with top insurance providers.
With the addition of insurance products to its portfolio, Freo aims to enhance its current offerings, which include UPI payments, loans, and savings. Following its recent milestone of achieving profitability, this move solidifies Freo’s position as a comprehensive digital financial solution, catering to a wide array of customer needs.
Insurance penetration in India remains low at approximately 4.2 per cent, compared to the global average of 7 per cent. This gap indicates that a substantial portion of the population is either uninsured or underinsured, often due to the perception that insurance is complex and primarily necessary for health or life coverage. Many consumers view insurance as an unnecessary expense rather than essential protection, further complicating their engagement with the industry.
Moreover, issues such as a lack of personalised options, prevalent mis-selling, and low trust levels deter potential customers from considering insurance as a viable safety net. However, with the regulatory vision of "Insurance For All By 2047," the Indian insurance sector is projected to grow at an average rate of 7per cent over the coming years, three times the global growth rate.
The new insurance covers will cater to various needs, including specialised plans for women’s health, top-up options for existing health policies to alleviate financial burdens, and coverage for common diseases such as malaria and dengue. Additionally, Freo plans to provide protection against cyber fraud, job loss, and more, ensuring extensive coverage without straining users' finances.
“At Freo, we believe insurance should be simple, trustworthy, and within everyone’s reach. We’re committed to offering a seamless experience through a fully integrated digital platform aimed at delivering more value to Freo customers,” said Kunal Varma, Co-founder and CEO of Freo.
