Neo-bank has secured a Corporate Agent license from the Insurance Regulatory and Development Authority of India (IRDAI).
With this license, Freo can now offer its 25 million registered users a range of curated insurance products in partnership with insurance providers.
“Our vision has always been to create a unified financial app for middle-income Indians, where they can borrow, save, and now, protect themselves with affordable and easy-to-understand insurance products,” Kunal Varma, Co-founder and CEO of Freo told YourStory.
“Our entry into insurance is not just about filling a gap in our product suite. It’s about building long-term trust with our users and offering a holistic financial safety net. By 2047, we want Freo to be a household name when it comes to comprehensive, user-friendly financial solutions, including insurance.” Varma added.
The offerings include plans such as women’s health coverage, super top-ups for existing health policies, and protection against common diseases like malaria and dengue. Freo is also introducing cyber fraud protection and job loss insurance.
Starting at Rs 49, Freo aims to keep premiums for these products affordable. “We wanted to offer pocket insurance that is simple, trustworthy, and within everyone’s reach,” Varma added. Freo’s fully integrated platform enables users to complete their KYC and policy purchases directly within the app.
Freo’s insurance products are designed to address the low insurance penetration in India. In the life insurance business, India is ranked tenth in the world. India’s share in global life insurance market was 2.73% during 2019, according to IRDAI’s customer education portal. Similarly, in the non-life insurance business, India is ranked 15 in the world. India’s share in the global non-life insurance market was 0.79% during 2019.
Varma emphasized that the insurance sector in India suffers from challenges like misselling and a lack of affordable, simple products. To counter this, Freo aims to make insurance understandable and accessible to all. “We’ve ensured that the products are easy to comprehend and avoid the complexities that make insurance unapproachable for many,” he stated.
