Now, insurers roll out wallet apps that enable customers to renew, buy policies

After banks and technology firms aimed to be payment banks, now insurers have also started offering wallet apps that enable customers to renew and buy insurance policies through their smartphones without having to pull out their credit or debit card.
Insurance companies such as Bajaj Allianz General and ICICI Lombard have launched wallets, which also allow policyholders to send claim intimations, although given the likely annual usage of the service it would be difficult for insurers to improve revenues from this channel.

"Apart from buying and renewing policies, we ask customers to send claim intimation with a photo clicked on their phone to process claims," said Sanjay Datta, head of underwriting at ICICI Lombard General Insurance, which is encouraging policyholders to transact on mobile.

Aditya Sharma, head of strategic initiatives at Bajaj Allianz General Insurance, said the firm has got 12,000 wallet users in less than two months of its launch."We are seeing growing interest for buying health and motor insurance through the wallet. We are engaging more through this system," he said.

Bajaj Allianz is settling claims below Rs 20,000 on the wallet.The Pune-based insurer has also tied up with BillDesk for pay ment facilities.

Mobile wallet companies are approaching insurance companies to be part of their channel. With more and more Indians using their smartphones to make purchases and government looking for ways to discourage cash transactions as part of its effort to check black money in the system, mobile wallet services have huge scope in the country.

There are about 10 million customers transacting on mobile wallet today. This number is expected to grow to 100 million in next five years.

To engage with customers on a regular basis, insurance companies are sending road safety and health tips on the app. During the monsoon, companies were sending messages on safe driving.

"Globally, insurance wallets are used for buying health and motor insurance products," said Sanjay Tiwari head of products Exide Life Insurance. "We are looking to launch a wallet for our existing customers. Some of our customers are using mobile wallets and want the facility to pay renewal premium through the app," he said.