PhonePe that recently split from parent company Flipkart, said that it had processed over 11 million insurance premium payments on its platform in 2020, with more than half the payments coming from users in lower-tier cities. That is, Most of the premium payments came from users in Tier II and Tier III cities.
COVID pandemic has affected the life and health of a million people around the world. The fintech giant said that they saw a massive spike in premium payments over the lockdown months, most likely spurred by panic buying of health insurance policies also people looked for different tools that could better help them financially fare any health issues caused by the COVID-19 virus. Also, these insurance Schemes provide try to spread awareness and significance of life protection of health and life.
During the initial months of the pandemic, several crores of people lost their jobs during the pandemic and by extension, also contributed massively to the increase in personal insurance purchases.
Ankit Gaur, Director of Business at PhonePe shares in a press release that,The digital payments landscape is rapidly changing the way people are transacting and investing. Also, Insurance as a sector is benefiting them immensely from these macro trends.
