PriyaPatel
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TLDR:
- Upstox enters insurance distribution business, starting with term life insurance.
- HDFC Life is among the first insurers to partner with Upstox.
Upstox, a wealth management startup, has recently ventured into the insurance distribution business. The company plans to roll out products in health, motor, and travel insurance segments in the near future. HDFC Life has partnered with Upstox to feature its term insurance plans on the platform. Upstox aims to provide a range of financial instruments on its platform, including stocks, IPOs, F&O, commodities, currencies, fixed deposits, P2P lending, government bonds, NCDs, gold, and now insurance.
The company achieved breakeven in FY23 with revenue crossing Rs 1,000 crore, aiming for tenfold growth in client base over the next five years. Upstox’s entry into the insurance distribution business comes amidst increasing investments by fintech companies in their insurance verticals, such as PhonePe. According to Upstox, insurance penetration in India is low, with many still reliant on traditional agent-driven models for purchasing policies. Upstox competes with wealth management platforms like Zerodha and Groww in this space.
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