Zopper’s Mission: Bridging India’s Insurance Gap with Technology and Partnerships
By Arunima Rajan
In a candid conversation with Arunima Rajan, Mayank Gupta, co-founder of Zopper, an insurance technology startup sheds light on the company’s growth journey, its funding milestones, and its mission to tackle India’s alarmingly low insurance penetration.
With low insurance penetration in India, what are the key consumer pain points Zopper aims to address through technology?
As per PwC, currently ranking as the 10th-largest insurance market in the world, the Indian insurance market is expected to grow rapidly to become the 6th largest insurance market globally in the next decade, as estimated by the Insurance Regulatory and Development Authority of India (IRDAI) however, the insurance penetration still remains to be low. Back in 2019, the world was in dire need of insurance (health and general). That's when Zopper figured out this opportunity, and we started creating our platform to go beyond device and appliance protection. In the last five years, we have built comprehensive capabilities using our tech platforms to enable all types of insurance products across all channels. Today, the insurtech market is growing at about 40% y-o-y and it presents a huge opportunity because insurance companies are opening up to adopting technology since it has disrupted the space in many ways. Through technology, we are addressing the core issue, which is the availability of insurance in the market. For example, earlier, if you had to buy insurance, you would either wait for somebody to call you or go to a bank or maybe an insurance company's office or website. Today, insurance can be made available at any point of time and during any step of the customer journey. Secondly, with the help of technology and innovation, we are customising products and solutions that are affordable and contextual. We are able to suggest an insurance plan that is very relevant to customers based on their socioeconomic profile and different life stages. Third is claims processing and automation. You don't have to wait for weeks or months for your claims to get reimbursed. Today, there are WhatsApp chatbots or apps where you can simply register your claim. Your claims are processed in real-time.
How does Zopper’s partnership-driven approach enable it to stand out in India’s competitive insurtech landscape?
At Zopper, customer-centricity remains at the core of everything that we do. Most recently, we partnered with a leading insurance and smartwatch brand for designing one of the most innovative health and wellness initiative, Zopper Wellness Program for customers. This end-to-end initiative seamlessly integrates technology, lifestyle, and financial protection, exclusively curated by Zopper. Through the program, the smartwatch users can voluntarily enroll and enjoy rewards for every step they take, promoting active and regular walking. Customers can qualify for up to 100% of their watch's value based on the carefully designed steps point system. With a vision to champion wellness across India, Zopper redefines health engagement, encouraging citizens to move more while benefiting from advanced tech-driven solutions.
What are the most transformative technologies reshaping India’s insurance industry, and how is Zopper leveraging them?
Zopper redefines the insurtech landscape with its unique approach. As the only platform in the market offering customised APIs seamlessly integrated with insurers, we empower distributors to sell any type of insurance effortlessly. At its core, our mission is to democratise insurance distribution, breaking barriers to accessibility and enabling businesses to thrive. By acting as the vital bridge between insurance companies and ecosystem players, Zopper ensures cutting-edge technology integrations are coupled with tailor-made insurance solutions, creating a seamless, efficient, and scalable insurance ecosystem. With Zopper, innovation meets inclusivity, making insurance smarter, simpler, and accessible for everyone.
To sum it up, I would like to convey a very simple message: our thesis from the early days has been clear: There’s already an infrastructure. Somebody has poured capital expenditure to build that infrastructure. So why don’t we use technology to streamline that instead of creating everything from scratch.
With the rise of AI and data analytics, how do you ensure the ethical use of technology while balancing innovation and consumer trust?
The thumb rule for Zopper is that we discuss the problem statements with our partners and work backwards to devise a strategic plan and ensure we provide tailor-made solutions. We digitise their journey, be it - offline or online, by adopting a simple, effective SaaS-based module using various machine learning and artificial intelligence techniques. We have started using AI and ML in our existing modules to improve our customer experience. Our strategy has been and will always be to foster a culture of innovation and develop new products and services that meet the evolving market conditions. We conducted many experiments last year and have identified products in a few business verticals, which yielded great results for us. We will focus on consolidating and maturing those products in the coming years, keeping customer’s needs and demands in mind without compromising their trust.
Embedded insurance is gaining traction globally. How is Zopper adapting this trend for the Indian market, and which industries are best suited for this model?
Embedded insurance is a convenient solution that bundles insurance products in real time for customer purchase journeys. It is integrated into various travel and delivery apps, making insurance more accessible to the masses. According to estimates, the convenience and personalisation embedded insurance offers will ensure India's embedded insurance industry can grow by 46% to reach Rs 1,61,442 Cr by 2029. By embedding insurance into other products, insurtechs / insurers can leverage existing customer touchpoints and data to offer customers personalised and relevant insurance solutions. It reduces the risk of errors and is more secure. For businesses and insurance firms, it reduces customer acquisition costs as the customer is already purchasing the main product, and embedding the insurance product tends to enhance the portfolio. Using application programming interfaces, we facilitate sale of insurance as sachet-size products on various ecommerce portals, fintech platforms, and banking and financial services touchpoints.
What are the biggest challenges insurtech startups face in India?
While globally, insurtech funding has continued to slow down, APAC has been relatively resilient, according to the BCG report. As India aims for Viksit Bharat by 2047, a stable and resilient financial sector is critical, with the insurance sector needing to maintain its strong growth trajectory. Insurtechs are well positioned at the forefront of this evolution, leading the charge in expanding access, building awareness and enhancing affordability for all. However, with the advent of digital transformation, insurtech companies face a myriad of challenges that can make or break their future success. From cybersecurity risks to changing consumer expectations, the industry’s landscape is being reshaped, demanding a strategic and adaptable approach.
As Zopper scales, what is your vision for its role in transforming India’s insurance ecosystem over the next 5-10 years?
Zopper is in a hyper-growth trajectory mode. We have recently also raised $25 million in Series D funding round, co-led by Elevation Capital and Dharana Capital. The round also saw participation from existing investor Blume Ventures. Zopper is also backed by Creaegis, Bessemer Venture Partners and ICICI Venture. We plan to use this fresh funding to ramp up our digital technology infrastructure by strengthening the insurance distribution platform. In the coming years, we will look at capitalizing on opportunities in insurance and adopt a three-pronged approach of solving for affordability, availability and accessibility.
Zopper recently secured $25 million in a Series D funding round led by Elevation Capital, Dharana Capital, and Blume Ventures. The new funds will be utilised to enhance Zopper's digital infrastructure, focusing on strengthening its insurance distribution platform. The investment will also support the growth of its bancassurance solutions and improve post-sales and service operations for its device and appliance protection segments.