Digit Insurance has tied up with Karur Vysya Bank (KVB) for its first bancassurance partnership and will target the small and medium enterprises (SME) with packaged products.
Digit insurance thought Karur Vysya Bank was the right fit for them. “The bank is investing into the digital path by giving loans through app to SMEs & they wanted to focus on this particular segment more where the opportunities are big. If an SME wants insurance, they will be able to do it on a real-time basis.
Bancassurance is an arrangement that allows insurance products to be sold through a bank. A bank is allowed to tie up with three life, three non-life and three standalone health insurers.
In the initial stage, the insurance products for SMEs will provide a cover for business interruption and loss with a fixed benefit, beyond the regular coverage available in the market. Later, components like health insurance could also be added.
Digit insurance is backed by Fairfax Group, which has operations in over 30 countries and takes a long-term value approach towards investments in India