Max Bupa has teamed up with digital wallet platform MobiKwik to sell health insurance in India. The simple insurance offered and broad reach of MobiKwik gives Max Bupa an opportunity to capitalise on the potentially lucrative Indian private healthcare market.
India certainly has a market for selling private health insurance. According to GlobalData estimates, the country spent only 1% of its GDP on public healthcare in 2017, which is much below spend in more developed economies (8.6% in the US, for example).
MobiKwik the answer to insurance needs?
The resulting low quality of public healthcare in India creates the need for private healthcare.
According to Al Jazeera, about 75% of medical treatment in India is done privately despite being roughly four times as expensive, displaying the gulf in quality between the two sectors. With this in mind, if providers can market their products to those without health insurance, there may be opportunities to be found.
Max Bupa is offering its “HospiCash” product through MobiKwik, with coverage starting from just INR135 ($1.97) per year. The policy covers up to 30 days in hospital and provides a fixed payout each day, which doubles if the policyholder is in an intensive care unit.
This is being sold through the insurance tab on MobiKwik’s app, with payment being made from users’ MobiKwik digital wallets. This easy-to-buy, easy-to-understand, low-cost, and bite-sized insurance is a good way to tap into a greater proportion of India’s market, as all the hassle is removed from the purchasing process.
MobiKwik claims to have 107 million users – thus they are a large access point to the market – and those users are likely to trust MobiKwik and, therefore, the products offered on its platform. MobiKwik benefits too as its insurance tab is fleshed out with another product, without interfering with the core services it provides.
If MobiKwik and Max Bupa succeed in compelling app users to explore the new insurance tab, the move will be beneficial to all parties. Max Bupa has secured a new profitable distribution channel, while MobiKwik has secured a new revenue stream without compromising what current users want from its app.
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