Vital, the insurtech startup, has amazed everyone with its unique insurance policies for every individual. Within one year of its journey, the startup has grown 200% due to its data science-oriented customer-centric insurance products. Recently, the firm has also raised $3 million to strengthen its operations further.
How Vital Got Popular in Insurtech Area?
In 2020, Rahul Kumar and Jayan Mathews co-founded the insurtech firm for providing personalized and affordable insurance cover to the users. Rahul Kumar is the former co-founder and a serial entrepreneur who has also handled managerial positions in Expedia and MakeMyTrip. On the other hand, Jayan has vast experience in the health insurance sector has also worked as former head of product at Apollo Munich Health Insurance.
Due to co-founders’ vast experience in the health insurance and startup sector, Vital tasted success in the early stage itself. Jayant as a health expert identified the weaknesses of the insurance sector, whereas Kumar brought the latest technological solution to bring a personal touch in the insurance field.
Generally, a health insurance cover takes care of the hospital expenses. But, Vital is a subscription-based insurtech firm that covered hospitalization and added essential wellness expenses in the existing insurances. That helped the users to live healthy lives.
Vital awards point to the insurance holders based on their past activities. These points may cover the subscription payment. Every member’s queries are solved in real-time by a dedicated care manager assigned by the Vital.
Vital, the tech-based health insurance platform, has brought a customer-centric product with the help of Care Health Insurance. And the startup has added its offerings on healthcare platforms including Mfine, Healthians, Thyrocare, 1Mg, BeatO, Fitterfly, Fitternity, Cult.Fit, and Betterlyf, for the wider reach.
Generally, an insurance cover takes few days to apply and buy the policy. And, if you want to claim it, then you have to run here and there to complete the process that may take a month. At Vital, the insurance buying and claiming process has been reduced to few steps. That is why, you can buy an insurance cover within 60 seconds and can claim it in less than 2 minutes, as per the startup’s claim.
Growth of Vital
Vital recorded exponential growth within a year. As per the startup’s claim, it saw a 200% surge in its operations within one year.
What is the major reason behind the rising demand for Vital’s insurance products? Answering this question to Inc42, Kumar, CEO of Vital, said:
“Unlike traditional health insurance, which is one size fits all with an expensive annual premium and numerous terms and conditions, we at Vital are leveraging technology and data science to build a more personalized experience with an integrated health and wellness approach and smarter product structuring to make the premiums much more affordable.”
Currently, Vital has maximum clients from the urban area in the age groups of 25-55. And, its insurance plans have Rs 900 and above monthly premium value. But, the firm plans to attract SME workers with lesser premium value.
Talking about the same, Kumar said:
“Our current average ticket size is upwards of INR 900 for individual customers but as we seek to expand to a larger product base, we will introduce health insurance products with lower monthly premium value.”
Recently, Vital has raised $3 million in a pre-Series A financing round led by BLinC Invest. Venture Catalyst, Survam Partners, and several other angel investors also actively participated in the round.
The current funding will help Vital to fulfill its operational needs for the coming one and a half years.
Talking about its association with Vital, BLinC Invest’s founder and MD Amit Ratanpal said:
“We at BLinC Invest are excited to associate with the team in their endeavor to reimagine the entire value chain of health cover by going beyond just hospitalization and help people change their way of managing health and wellness expenses.”
As per General Insurance Council, pandemic year paid over Rs 24,000 Cr worth of claims under medical insurance. The data also reveals that there is a surge in purchasing comprehensive insurance plans. Before covid, only 32% people bought such plans and now that number has surged to 55%.
Talking about Vital’s unique offerings, Apoorv Ranjan Sharma, co-founder, and president, Venture Catalysts said:
“Vital is leveraging world-class technology and data science to bring transparency in this fragmented space and empower the customers. It is an innovative approach with tremendous disruptive potential and makes us confident in our bet on the startup. The funds will significantly help Vital scale and transform the way health insurance is perceived in India.”
As per the data shared by the General Insurance Council and the Insurance Regulatory and Development Authority of India (IRDAI), the health insurance portfolio recorded an 11% year on year in FY21 to INR 58,584 Cr, due to the pandemic. Vital will benefit a lot from the current status of health insurance.