Wealth management platform Upstox has ventured into the insurance distribution sector, enhancing its comprehensive financial services suite, which already includes stocks, F&O, and mutual funds. Initially, Upstox will provide Term Life Insurance, with plans to add Health, Motor, and Travel insurance soon. HDFC Life is one of the first insurers to collaborate with Upstox, offering its Term Insurance plans on the platform.

India’s insurance penetration is currently at a low 4.2%, with traditional, agent-driven models still prevalent. This market is characterized by a lack of awareness, complex jargon, cumbersome paperwork, and a plethora of choices, often leading to customers ending up with unsuitable insurance plans due to widespread mis-selling.

Upstox aims to revolutionize this process by utilizing advanced technology and industry expertise to simplify the insurance journey. The platform will guide users through tailored questions to help them find the most suitable insurance plans and features a cover amount calculator for accurately determining optimal coverage.

The company emphasizes transparency, providing detailed information on claim settlement ratios over one and three years, complaint volumes, solvency ratios, plan features, inclusions/exclusions, and settlement timelines. This initiative aims to educate users and ensure they make well-informed insurance decisions.