Onsurity, a pioneering insurtech startup based in India, has recently secured a significant investment, further solidifying its position in the market. Here’s a closer look at the details and implications of this development.
Onsurity’s Unique Proposition
Onsurity, founded in 2020, specializes in offering monthly subscription-based insurance solutions tailored for micro, small, and medium enterprises (MSMEs), startups, and growing businesses in India. With a mission to bridge the insurance gap in the country, Onsurity integrates healthcare and wellness benefits, allowing enterprises of all sizes to provide their employees with a range of services, from health checkups to discounted medicines.
A Significant Funding Round
The insurtech startup has successfully raised $24 million in a Series B funding round spearheaded by the World Bank’s International Finance Corporation (IFC) . This round also witnessed contributions from existing investors such as Nexus Venture Partners and Quona Capital. With this recent influx of capital, Onsurity’s total funding has reached an impressive $40 million.
Addressing the Insurance Gap in India
India is home to over 63 million MSMEs, employing approximately 400 million individuals. Despite this vast number, traditional insurance companies have largely overlooked this segment, focusing instead on motor, retail health, and large corporate insurance programs. Onsurity aims to address this oversight by introducing insurance solutions specifically designed for MSMEs and emerging businesses.
Expanding Offerings and Vision
Onsurity has been proactive in diversifying its product range. Recently, the company launched cyber risk insurance, providing businesses with dedicated coverage against online privacy and security breaches. Additionally, Onsurity offers D&O liability insurance and commercial general insurance under its “Onsurity Plus” banner.
Yogesh Agarwal, the founder and CEO of Onsurity, emphasized the company’s unique position, stating, “We are not competing with large insurance players… We are just creating our own category.”
Future Prospects and Growth
With the new funding, Onsurity has ambitious plans for expansion. The startup aims to serve over 50,000 companies and provide coverage to more than 5 million individuals by 2026. Onsurity is also investing in technology to enhance its services and is exploring the potential of AI to offer tailored products to SME customers.
The investment by the World Bank’s IFC in Onsurity underscores the growing importance and potential of insurtech in India. As the country grapples with low insurance penetration, innovative solutions like those offered by Onsurity could play a pivotal role in reshaping the insurance landscape and providing essential coverage to millions.
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