The Policy Exchange is a new age start-up in the area of Insurance technology. It aims to bring new paradigms and solve a a perennial problem facing the entire insurance industry in general and life insurance industry in particular. The company is founded by industry veterans who collectively have more than 50 years of experience in the BFSI sector.
The 3 main stakeholders of the Life Insurance Market, namely the policy owners, insurance companies and insurance agents, face challenges unique to each participant yet interconnected to all of them. A policyholder faces the dilemma of continuing the policy during financially difficult times thereby, being forced to discontinue or surrender it, leading to a loss of both protection and value. This mid-term policy termination impacts the profitability of the Insurance company due to lower ‘persistency’. At the same time, an insurance agent loses out on his renewal income, eventually impacting his livelihood.
Value Proposition/ Solution brought by The Policy Exchange
The Policy Exchange proposes to solve this predicament by creating a bridge between the troubled policyholder who is unable to pay the renewal premium and an investor looking to invest in a safe instrument that gives comparatively high returns. Our unique platform, which is accessible to investors, agents and policyholders alike, is a database and a transaction work-flow of preowned policies, which helps both ends get the best possible deal. Through our platform, a policyholder can assigns his/her policy to an investor, who not only pays the surrender value to the policyholder, but also also pays the future renewal premiums to the insurance company. The investor in such situation gets all the maturity amount and benefits of the policy. This ensures that the policyholder continues his/her life protection even after encashing the policy and the investor achieves his/her investment goals with guaranteed high returns. The insurance companies and its agents are also happy with the policy staying in-force.
Applicability
The total surrender/lapse value is touching Rs.1.5 lac crore at present with a 15% CAGR. At this rate, it will be touching 4.5 lac crore by 2027 which will be a huge problem for the industry. It will also back-peddle Government’s efforts towards increasing Life Insurance penetration in India to provide its citizens with financial security. We aim to increase the liquidity of life insurance policies by de-coupling the investment from protection, which will not only protects the insurance cover of the financially troubled policyholders but also provide a safe investment platform for investors seeking to grow wealth through a route as safe as a bank deposit and yet providing higher returns.
Co-founder & CEO
Naveen comes with a rich experience of over 25 years in the consumer banking and telecom space. He managed large scale outsourcing operations, at Bharti Airtel, SBI Cards and Citibank. He started his entrepreneurial journey in 2013 with a couple of colleagues from Airtel.
Co-founder & COO
Safia also has over 25 years of diverse experience in the telecom and social sector. She has handled important roles in Sales, Service Marketing, Operations & Credit-control in Koshika Telecom, Global Telesystems and Bharti Airtel. She also began her entrepreneurial journey in 2013 along with Naveen.