Online insurance platform ‘Toffee’ to roll out products for millennials

The digital-only insurance platform ‘Toffee’ is looking to distribute specially-designed products to cover lifestyle risk of millennials.

People in the age bracket 25-35 years are usually referred as the millennials.

According to Rohan Kumar, co-founder and CEO of Toffee, these will be simplified offerings, customised to cover specific risks at an attractive price point.

Toffee, which is a corporate agent, currently curates products from general and health insurance companies, including Apollo Munich, HDFC Ergo and Future Generali. The company has already rolled out various offerings, priced between ₹600 and ₹1,500. These include Anti-Dengue Toffee (for treatment for dengue), Commuters Toffee (for daily commuters exposed to accidents), and Globetrotter Toffee (policy for international travel without market/regional exclusions).

“We plan to roll out seven more products, including Renters Toffee (covering theft and repair of goods), Stay Fit Toffee (to cover injuries while working out) and Backpacker Toffee (for domestic travel) in the next one month,” Kumar told BusinessLine . Designed in a fluid web app flow, Toffee claims to reduce purchase time to 90 seconds on average, along with simple claim processing in under two hours.

The start-up, which was launched about five weeks back, is looking to tap 50 million digitally active users on social media platforms in Tier-I and -II cities and sell close to one lakh policies in the next one year.

According to Kumar, there has not been much ‘product innovation’ across the insurance industry in the recent past. A majority of the offerings are ‘blanket products’ which have same structure and contours for people of all groups. There is hardly any scheme which has been designed with the young audience in mind.

“A majority of these products, that were designed for the offline channels, are now being pushed online. But millennials do not understand such complex schemes. They are looking for simpler and more niche offerings,” he said. This is where Toffee comes in.

Using behavioural and real-time data, it identifies specific needs of the target customer and suggests it to insurance companies it has partnered with. The insurer then comes up with products at a particular price point, which is typically lower than an umbrella or all-encompassing product.

“Most insurance companies usually take a fairly exhaustive cover which is all-encompassing; we try to de-bundle those products (based on customer requirement). The insurers’ actuarial team then comes up with niche offerings at an attractive price point,” he pointed out.

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