Despite increased awareness about health insurance, India has over 40 crore individuals without medical cover, according to a report by The National Insurance Academy. This constitutes over 31% of the country’s population.
For uninsured individuals, medical expenses can significantly strain or deplete personal savings, making healthcare accessibility even more challenging.
Rahul Singh, founder of InsurMonthly, wanted to change this.
While working in roles of strategic business development and product management with top financial institutions like IndusInd Bank and Aditya Birla Finance, Singh recognised that financial services were tailored for high networth individuals (HNIs). However, similar access to comprehensive healthcare was not available to the broader population.Â
This realisation drove him to rethink traditional health insurance models, aiming to create a more inclusive approach that combined wellness services with insurance, ultimately leading to the foundation of InsurMonthly in 2019.
“At InsurMonthly, we are reinventing the entire Health and Wellness stack to make it more personalised, inclusive, and affordable backed by technology and data science. Every player in the market is charging on an Ala-Carte basis taking the prices higher. We have bundled all the Health and Wellness services together to offer a comprehensive package at the most reasonable price,” explains Singh.
Building for the masses
The Bengaluru-based startup combines health insurance with wellness services under a single subscription model. These services include virtual and physical doctor consultations, prescribed tests, full body checkups, lung health evaluations and discounted pharmacy options.
It has subscription plans for both SMEs and startups as well as for individuals.
For SMEs and startups, InsurMonthly provides health and wellness plans tailored to small businesses and startups, enabling them to provide employee benefits without straining working capital.Â
For corporates, the company’s subscription plan starts at Rs 228 per month per employee, and for individuals it is Rs 623 per month.Â
In March 2022, the company raised Rs 1 crore in pre-seed funding led by AngelBay. The company is planning to raise $2 million in seed round in the next financial year, confirmed the founder.
Market size and way ahead
The India health insurance market size was valued at $ 12.86 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 11.55% from 2023 to 2030.
Players like Onsurity and Pazcare have established themselves in the employee benefits and insurance sector, offering group health insurance plans and wellness add-ons for organisations. However, InsurMonthly differentiates itself by integrating insurance and wellness services into a single, affordable subscription plan.Â
“InsurMonthly is a one-stop solution for all your health and wellness needs under one umbrella at an affordable price,” adds Singh.
The company claims to have generated a revenue of Rs 3 crore in FY24.Â
Going forward, the company will collaborate with local hospitals, clinics, and specialists to offer comprehensive care services and network benefits. The startup will be partnering with fitness centres and wellness organisations to provide discounted memberships and services to employees.Â
In the next four years, InsurMonthly plans to cover one million families and reach five million employees.
Currently, the company has over 120 B2B clients, serving more than 40,000 individuals. Some of its clients include Skootr, Lendbox, Suntech Global, and Havi-Design.
A report by Jefferies suggests that the health insurance sector in India may face challenges due to rising claims and increased competition, particularly in the retail sector. The report also highlights India’s non-life insurance sector experiencing significant shifts, with healthcare costs rising and more consumers claiming insurance. This could squeeze margins and put pressure on insurers like InsurMonthly to manage costs while remaining competitive.
