How about insurance for a new bicycle?A slew of startup insurance companies, mostly selling online to keep costs low, are trying to sell micro insurance products, promising low premiums and rapid settlement. An optician might sell a micro insurance product along with a spectacle. A shopping website might sell insurance along with a cellphone. Insurance startups saw an untapped market in micro insurance and are trying to fill that gap, while growing the category, building awareness and dreaming up new micro products.Ashwin Ramaswamy, head of partnerships, Acko, sees four components in micro insurance: micro price (low premium); micro duration (a single bus ride or over a few months); micro cover (few thousand rupees to a few lakh) and micro claim, settled digitally and quickly. It works with eight insurance companies, including HDFC Ergo and ICICI Prudential, to create unique products.

Source: Economic Times October 19, 2019 17:26 UTC