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Writer's pictureRahul Salian

How is insurtech driving two-wheeler insurance sales?


There are more two-wheelers in production in India today than any other kind of vehicle. Around 13.47 million units were sold throughout the country in the financial year 2021-22 (Source: Statista). But how many of these were insured?


Even though third-party liability insurance is mandatory, two-wheeler insurance has lagged in the recent past. Around 13 crore uninsured vehicles were on Indian roads in 2019-20, and the bulk of these were two-wheelers (Source: Times of India). One major reason is that bike insurance is hard to access, and the customer experience is far from seamless.


The insurance pain points for owners of motorcycles, scooters, and mopeds include:

  • Insurance jargon that is difficult for laypersons to understand.

  • Extensive paperwork while purchasing a policy.

  • The need for bike owners to be proactive when buying or renewing an insurance plan.

  • The absence of general insurers outside Tier 1 cities.

Insurance tech companies could help resolve these challenges in the two-wheeler insurance space. These enterprises not only understand the obstacles in the Indian insurance sector but also have the technological solutions to overcome them.




Opportunities in digital insurance for two-wheelers


Everything is pointing to the potential for an increase in policy sales across the board. Outlined below are three factors that support the spread of digital insurance in India:

  • Smartphone penetration: By 2026, India could have one billion smartphone users, with rural demand growing at a compound annual growth rate (CAGR) of 6% and urban demand at a CAGR of 2.5% (Source: Deloitte).

  • Internet connectivity: With the rollout of 5G, around 80% of smartphone demand may be led by the need for 5G-enabled devices. Increased broadband connectivity in rural India would also power digital transactions (Source: Deloitte).

  • Mobile payments: Many Indians made and received their first mobile payments during the pandemic lockdowns, and it has become a habit. Around 45 billion transactions worth Rs 77.94 trillion were processed in 2021-22. Within the next five years, India may see up to a billion UPI transactions a day (Source: Economic Times).

People are already using smartphones and other internet-connected devices to shop for groceries, apparel, electronics, and a whole lot more. Insure tech companies like Turtlefin are transforming these everyday transactions into opportunities to sell insurance online.


A hypothetical customer Rahul buys a new motorcycle from a local dealership and pays for it through UPI over his preferred mobile payment app. At the digital checkout, he receives an offer for third-party liability two-wheeler insurance. If he accepts the offer, he can pay for the bike and the policy premium in a single transaction.


This is an example of an insurance tech at work. Insure tech businesses use low-code software called application programming interfaces (APIs) to transform almost any online sales channel into a digital insurance platform.


There’s no need for Rahul to visit the insurer’s office or browse the websites of multiple insurers. He simply buys the bike and the insurance for it over a payment app that he already uses. But the distribution points could be more varied. Imagine picking up two-wheeler insurance while:

  • Booking a bike servicing slot at an authorised service centre.

  • Purchasing accessories such as a helmet or a biker jacket on an eCommerce site.

  • Checking the balance on a two-wheeler loan that you may have taken.\

Insurance tech creates multiple touch points where the bike owner can purchase or upgrade their two-wheeler insurance. Insurance becomes more accessible, reaching the bike owner where he or she already is.




How Turtlefin facilitates two-wheeler insurance


As an experienced insurtech player, Turtlefin supports intermediaries to sell insurance online. Our plug-and-play insurance API instantly converts any digital sales channel into an online two-wheeler insurance platform.


You’ll find none of the heavy capital requirements of setting up your own technology systems and hiring insurance personnel. The only question you should be asking is whether your products and services are relevant to customers who may wish to buy bike insurance.


Customers who visit your sales portal can buy tailored bike insurance plans, pay the premium online, and avoid extensive paperwork. This kind of value addition drives brand loyalty. Keep in mind that insurance is a ‘sticky’ business, and your customers may keep coming back for more.




What’s ahead for two-wheeler insurance?


Manufacturers of two-wheelers are expecting an uptick in sales of 6% to 6.5% in 2022-23 (Source: Economic Times). That means the demand for two-wheeler insurance is also likely to increase. If you own or manage an allied business, consider embedding bike insurance plans into your transaction flow. It’s an easy way to add a new and scalable income stream while building value for your customers.




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