Fintech startup Fincase, which has been newly established to facilitate financing of insurance premium and loan against financial assets, on Tuesday said it is targeting to fund 10 lakh health insurance buyers by March 2025.
Financing of insurance premium allows a customer to spread the cost of annual health policy over regular monthly payments. Fincase, founded by Atul Garg a couple of months ago, has roped in Non-Banking Financial Companies (NBFCs) to finance insurance premiums.
The company said it has roped in Alok Bhatnagar, a digital insurance veteran, to spearhead its operations.
Citing industry data, the Delhi-based firm said about 51.4 crore Indians are covered by health insurance.
However, industry experts said a mere 10 per cent of these accounts are retail health policies and the rest are largely covered by government, corporate, or employer-led group health covers, such as Jan Arogya, and Rashtriya Swasthya Bima Yojana.
Fincase Founder and CEO Atul Garg said, "Our tech platform enables customers to choose comprehensive coverage and encourages them to opt for long-term policies. Such measures are particularly beneficial for older policyholders who face increasing premiums with age."
He said Fincase aims to provide finances to lakhs of customers currently underserved by traditional insurance models.
"The company targets to cover 10 lakh new and existing health insurance buyers by the end of fiscal 2024-25. The company will be primarily working with insurance and other financial intermediaries to cover the length and breadth of India," Garg said.
According to Garg, insurance premium financing is a step towards making health insurance accessible and affordable for everyone.
"By partnering with external financiers and NBFCs, we ensure that insurance companies receive upfront premium payments, thus improving their operational efficiency and cash flow," he said.
The company further said its tech platform is designed to augment business operations of financial advisors while creating new revenue channels for insurance companies and NBFCs.
Fincase enables customers to choose comprehensive coverage and encourages them to opt for long-term policies, it added.