Digit Insurance — latest startup to enter India’s unicorn list

Raised $18 mil @ $1.9 Billion valuation

Insurance Premium earned: $315 mil (Apr-Dec 20)

How is digit different from other insurance providers like Acko?
Majority (80%) of their insurance is sold offline through a broad network of agents, brokers & auto dealers

Because insurance is a “Push Product”

Comparison

Insurance Premium earned Y2020
Acko- $27 mil
Digit- 170 mil

A different Business Model?

Digit charges higher premiums for those who have a prior claim history.

Comparison
For a 6 year old honda renewal

With claim history -Rs 8627
Without -Rs 4389

Other insurers don’t do this..

Total Insurance sales agents in India- 5,00,000
Digit works with- 6000 (Third party distribution)

Digit’s digital interface gives the agents the freedom to decide on the discounts & sell more
(Agents of other insurers have to obtain offline approvals)

Commission per insurance sold: 15% of premium (IRDAI)
But, they earn upto 45% via incentives

Digit paid Rs 30 crore in commissions (Sep 2020)

70% of insurance sold by Digit is vehicle insurance

Digit lets you upload a pic of the damaged vehicle & claim insurance. 94% claims settled in this method

(Others keep this to minimum due to fraud)