The long-time “Jeopardy!” host has also been a mainstay in Colonial Penn’s life insurance commercials since the late 1990s.

Original Source: adage.com

The participation of insurers from rural areas is abysmally low in our country. And life insurers, especially private companies, have always been focussed more towards the urban population. For a long time now, the sector has not found many takers from rural areas due to several reasons such as low literacy rates, low incomes, etc. 

According to IRDAI, the insurance tech is a business that is yet to penetrate more than five percent of India’s population in the life segment, and in the non-life segment it is only 15 percent of the total viable market of $100 billion.

Spotting a gap in the segment, Abhishek Tiwari founded iAssure in 2015. The Jaipur-based startup aims to increase insurance penetration in semi-urban and rural areas, and is providing a platform for people to buy all general insurance products with point of sales persons (POSPs). 

“While working in Tier-II and III markets, we realised there was a huge gap in distribution as far as insurance is concerned. For example, Rajasthan has 33 districts and 300 plus tehsils. The presence of private insurers is not more than ten districts, whereas public players have their presence in all 33 districts and another 30 tehsils. It implies that rest of the market is served by individual or corporate agents who have their own limitations when it comes to offer choice of product and servicing,” says Abhishek. 

“We decided to solve this problem of distribution by digitising the insurance services, create mass level networks, create employment, and serve the unserved and underserved consumers in semi urban and rural markets of Bharat,” he adds. 

According to the company, it is helping individuals sign up with the right insurance plans at affordable price. At present, the startup is providing services in the northern regions of the country, and is currently present in ten states.

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The journey

A law and CA graduate, Abhishek worked with the ICICI Bank for a decade. He also served as the CEO at Au Insurance broking, and it was here the idea of iAssure was born. 

Abhishek says his mission statement is simple – he wants iAssure to insure 5,600 tehsils of India and become a one-stop solution for all financial protection needs of the customers in the next five years. 

“iAssure aims to solve the problem of lack of awareness, trust, digitisation, and distribution in semi urban and rural markets, which is home to eighty percent of the Indian population. iAssure also aims to bridge the deficit of trust by getting the transaction executed through a hyper local trusted resource who talks to the customer in his own language. It’s a sociable, sustainable, and scalable business model,” says Abhishek. 

“When I started out, there were difficulties. Like any startup, there was lack of trust initially among customers. Building a team, creating a model, and establishing a PoC with the technology platform was difficult. Three years down the line, we realised it’s a natural path, which any business or entrepreneur has to travel,” says Abhishek.

iasureThe product

The startup appoints point of sales people (POSP) who travel to towns and use digital means to show different products and pricing to customers that suits their needs. They assist individuals in choosing the right product and also help people with digital payments. 

“We recruit people with basic qualifications from remote areas, provide training to these individuals, and enable them to sell insurance in semi urban and rural markets. These people enjoy the trust of local customers as they belong to the same place, thus helping in the creation of employment/self-employment in these markets as well,” says Abhishek. 

IAssure’s point of sales person can use the phone to access products from multiple insurers, and compare and advise people about the best insurance plan to suit their needs. Since all this happens on a digital platform, it is easy for them to explain the product to the customers. They can also cross sell/upsell to same customer along with a motor insurance and the POSPs can also pitch a health insurance.

The company claims to be having 5,500 POSP counters in the last three years and has issued close to half a million policies.

The insurance market in India

In FY-16, the Insurance Regulatory and Development Authority of India (IRDAI) introduced and came up with guidelines for Point of Sale Persons, which was aimed at increasing penetration of insurance products by spreading distribution. Under these guidelines, intermediaries were allowed to appoint point of sales people under them who could sell pre underwritten products.

iAssure

Iassure founder Abhishek

Speaking about the current scenario, Abhishek says: “In the life insurance space, about 65 percent market is dominated by individual agents, 25 percent by corporate agents, five percent by insurance companies directly, and the rest is distributed among others. Only five percent sell online. So 95 percent of the market in life insurance is B2B and only five percent is B2C.”

According to the startup, in the non-life insurance segment ,about 30 percent is contributed by individual agents, 12 percent by corporate agents, 28 percent is direct, and 22 percent by brokers. Therefore 80 percent market is B2B and 20 percent B2C.

With the advent of technology and the release of POSP guidelines by IRDAI, the model is now evolving to assisted sales, where there will be physical touch points (individual advisors) with digital enablement. That’s where iAssure’s sweet spot is. 

The business and plans ahead

The bootstrapped startup, which is funded by family and friends, has made a total investment of close to Rs 12 crore in the company till date. 

The startup follows a revenue sharing model. iAssure shares 75 percent of the revenue with the POSP who sources the business and retains a margin of 25 percent on each transaction. 

Till date, the startup, which competes insurtech startups like Acko, Policy Bazaar, and Artivatic, claims to have served half a million customers. The startup clocked a revenue of Rs 9 crore in FY-20, and is eyeing Rs 15 crore in revenue by FY-21. However, the company is yet to become profitable. 

“Q-1 has been encouraging so far owing to the all-time high risk recognition among customers due to the COVID-19 outbreak. There has been a positive shift in the product mix and we have booked more business in health and life insurance vertical as compared to motor insurance,” says Abhishek. 

In the next 18 months, the startup wants to cover 1,400 tehsils in 10 states in its current area of operation and penetrate vertically. So far, it has covered 500 tehsils in North India. 

The government and IRDAI are also relentlessly working on reforms to improve the situation. Recently, the government increased FDI to 100 percent in the insurance intermediation business, and this alone means that iAssure can scale up in the future. 

Edited by Megha Reddy

Original Source: yourstory.com

Reaching your twenties is an exciting milestone for most as it means you’ve officially entered adulthood. Along with that milestone comes new responsibilities and worries that we didn’t picture when our teenage selves dreamed of turning 21. We imagined our college graduation, moving into our first apartment, and launching our new career. That vision didn’t include dealing with student loan debt, taking on a low paying entry-level job, or having to confront that despite spending 4 years in college, you’re still unsure how the world of personal finance actually works.

It’s easy to dismiss it all because well you’re a 20 something, and you’ll have plenty of time to play catch up. The reality is that each decade plays an important role in our future financial health. Take the time now to learn about your money and follow the money moves outlined below to put yourself on a path of lifelong financial success and eventual freedom.

Money Moves to Make in Your 20’s:

Learn How To Budget

Building a budget doesn’t have to be overly complicated or time-consuming. It’s actually the first step in putting yourself in control of your finances because it means you know where your money goes each month. The good news is that there are lots of apps and online tools that can make the process a breeze. Consider a system like Mint that will connect to your accounts and automatically categorize your spending for you. The right budgeting tool is simply the one you’ll stick with long term.

Pay Off Debt

Debt isn’t all bad. It may be the reason you were able to earn your degree, and a mortgage may help you one day buy a home. It can also quickly overrun your life if you aren’t careful. Now’s the perfect time before life gets more hectic with family commitments to buckle down and tackle any loans or credit card balances so you can be debt-free going into your 30’s.

Build a Cash Cushion

The financial downturn caused by the pandemic has reminded the whole world of the importance of having an emergency fund. We don’t know what life is going to throw at us and having a cushion can help you navigate the uncertain times. Though it’s not all about having a secret stash of cash to deal with the bad news of life (medical bills, car repair, layoff), it can also be about having the cash to seize an exciting opportunity. Having savings gives you the freedom and security to deal with whatever life brings your way – good or bad.

Understand Credit

Your credit score can dictate so much of your life. That little number can play a big role in the home you buy, the car you drive, and even the job you hold as some employers (especially in the finance world) will pull your credit. It’s important that you check your credit report and score (also available through Mint), learn how it’s calculated, and work to improve it.

Money Moves to Make in Your 30’s:

Invest For Retirement

Now that you’ve spent your 20’s building the foundation for your financial life, it’s time to make sure you’re also tackling the big picture goals like saving and investing for retirement. I typically recommend that clients save 10% to 15% of their annual income towards retirement. That may seem like an insurmountable goal, but starting small by saving even 1 to 3% of your salary can make a big difference in the future. Also, make sure to take advantage of any matching contributions that your employer may provide in your retirement plan. If, for example, they offer to match contributions up to 6%, I would try hard to work towards contributing at least 6%.

Buying Your First Home

Buying your first home is a top goal for many, but it also seems to be getting increasingly more difficult especially if you live in a major city. The most important steps you can take is to improve your credit score, pay down high-interest debt, and be aggressive about saving for a down payment. Saving 20% down will help you qualify for the best loan terms and interest rate, but there are still home loans available even if you aren’t able to save that much. Just be realistic with your budget and what you can afford. Don’t let a lender or real estate agent determine what payment will fit into your budget.

Be Covered Under These Must-Have Insurances

You’ve spent the last several years building your savings and growing your family. It’s now crucial that you have the proper insurance coverage in place to protect your assets and your loved ones. Life and disability insurance are top of the list. Life insurance doesn’t have to be expensive or complex. Get a quote for term-life that will last a set number of years and protect your partner and children during those crucial years that they depend on you. Disability insurance protects your income if you become sick or injured and are unable to work. Your earning ability is one of your biggest assets during this time, and you should protect it. This coverage may be offered through your employer, or you can request a quote for an individual policy.

Invest in Self-Care and Well Being

Mental health is part of self-care and wealth. Most people don’t talk about how financial stress and worry affect their overall health. When you can take care of yourself on all levels, you will feel healthier and wealthier, and happier. But it is not easy. It takes work, effort, awareness, and consciousness to learn how to detach the value in your bank account or financial account from your self-worth and value as a human being. When you feel emotional about your money, investments, or the stock market, learn ways to process them and take care of yourself by hiring licensed professionals and experts to help you.

Money Moves to Make in Your 40’s:

Revisit Your College Savings Goal

As your kids get older and prepare to enter their own journey into adulthood, paying for college is likely a major goal on your list. Consider opening a 529 plan (if you haven’t already) to save for their education. 529 plans offer tax advantages when it comes to saving for college. There are lots of online resources that can help you understand and pick the right plan for you. Visit https://www.savingforcollege.com. This is also a great time to make sure you’re talking to your kids about money. Give them the benefit of a financial education that you may not have had.

Get Aggressive with Retirement Planning

Your 40’s likely mark peak earning years. You’ll want to take advantage of your higher earnings to maximize your retirement savings especially if you weren’t able to save as much in your 20’s and 30’s. Revisit your retirement plan to crunch the numbers so you’ll be clear on what you need to save to reach your goal.

Build More Wealth

You’ve arrived at mid-life probably feeling younger than you are and wondering how the heck that big 4-0 got on your birthday cake. We typically associate being 20 with being free, but I think we’ve got it wrong. There is something incredibly freeing about the wisdom and self-assurance that comes with getting older. You’ve proved yourself. People see you as an adult. Your kids are getting older and your finances are more settled. Now’s the time to kick it up to the next level. Look for ways to build additional wealth. This may mean tapping into your entrepreneurial side to launch the business you’ve dreamed of or buying real estate to increase passive income. Now’s also a great time to find a trusted financial advisor who can help guide your next steps and help you plan the best ways to build your wealth.

Revisit Your Insurance Coverage

Insurance was crucial before, but it’s time to revisit your coverage and make sure you’re protected especially if you decide to launch a business or buy additional real estate. This is also where a financial advisor can help you analyze your coverage needs and find the policies that will work for you.

Consider Estate Planning

Estate planning (think wills, trusts, power of attorney) isn’t the most fun / exciting topic. It involves imagining your gone and creating a plan for the loved ones you leave behind. It is also often overlooked by adults in their younger years. It’s easy to assume estate planning is something the wealthy need to do. It really comes down to whether you want to decide how your life savings will be managed or if you want a court to decide. It’s also crucial for parents with children who are minors to select a guardian and have those uncomfortable conversations with their family members about who would care for the children if the worst were to happen. It’s also a good time to visit this topic with your own aging parents and make sure they have the proper documents and plans in place.

 

Whether you’re in your 20’s, 30’s or 40’s, it can be easy to put off planning your finances especially in the middle of a pandemic. Most of us are busy, and it’s easy to tell yourself that you’ll have time to work on a goal in the future. Commit to setting aside one hour each week or even each month to have a money date and review your finances. Don’t let yourself reach a milestone birthday (30, 40) and regret not being farther ahead. Follow these money moves now to seize control of your financial future.

The post Money Moves to Make in Your 20s, 30s, and 40s appeared first on MintLife Blog.

Original Source: blog.mint.com

May 2 is National Life Insurance Day, an observance that reminds Americans how proper planning now buys peace of mind in the future. Protect your loved ones with life insurance through AOAExcel®.

Original Source: aoa.org

Learn about the advantages of purchasing group term life insurance through AOAExcel®.

Original Source: aoa.org