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Introduction

Context Setting:

Before delving into specific details, let's first discuss and establish the context surrounding Insurtech and Plum as a company, along with its offerings and strategy.

Caveat: This is my understanding about Plum, however, I can be wrong, I am open to learning from my mistakes and making corrections as needed.

The Indian InsurTech Landscape:

The Indian insurance sector is undergoing a significant transformation driven by the rise of InsurTech companies.
Market Growth: The country’s insurance industry is rapidly growing, with an expected market size of $280 billion by 2025, a compound annual growth rate (CAGR) of 12%-15%.
Digital Adoption: Increased internet and smartphone penetration are driving the adoption of online insurance platforms. Customers, particularly younger demographics, are seeking convenient and transparent insurance solutions.
Focus on Untapped Segments: InsurTech companies are targeting previously underserved segments like SMBs and individuals in tier-2 and tier-3 cities. Traditional insurance players often struggle to cater to these segments effectively due to cost structures and distribution networks.

What is Plum?

Plum is a simple way for a small team in India to get started with health benefits. It includes health insurance, unlimited doctor teleconsultations, wellness sessions, discounted medicines and checkups, and exceptional customer support. Paid monthly.

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Website:
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Industries: Insurance
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Company size: 51-200 employees
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Headquarters: Bengaluru, Karanataka

The parties involved:

Essentially there are three stakeholders.
1. Buyer (head of HR / Head of Finance/ Founder)
2. End users who are actually using the product (Employee or their Family member)
3. Insurance Partner (The entity who is underwriting the Insurance product)
[ As a product person, the most fascinating part of building for Plum would be the idea that customers and users are different. The customers are the companies who are buying the insurance for their employees, and End users are the employees themselves.
You have to sell to the customers but build for the users. ]

Target Market:

Primary: Small and medium-sized businesses (SMBs) in India with a focus on companies with 10-500 employees.
Market size estimated at over 63 million according to the Ministry of MSME.
SMBs often lack the resources and bargaining power of larger companies to negotiate affordable and comprehensive employee health insurance plans.
Expansion: Recently entered the business insurance market, targeting companies with as few as 5 employees.
This segment represents a large and growing market opportunity in India.

Pricing model:

Plum offers - A robust pricing model that depends on almost 30 parameters. The pricing can start at as low as ₹85/month per person and can go as high as ₹5000/month per person (not capped)
At Plum, the cover can be customized as per every single organization and thus there is no one standard limited offering. A company can reach out and get a quote for their organization based on what their employee’s requirements are.

Go-To-Market Strategy:

Building the right product!
Plum leverages technology to provide a seamless user experience. Their online platform simplifies policy purchase, claims management, and employee self-service. This focus on digital adoption aligns perfectly with the growing trend of online insurance solutions.
Word-of-mouth Growth - Initial major part of customer acquisition has happened through referrals from existing customers.
Content - Website and social presence is gold (considering you’re a B2B company)
Sales - Definitely, sales team must be working tirelessly, day in and day out, in closing the deals.
Early adopters for Plum - Startups; these are the companies that can take more risks and want to give better experience to their employees.

What matters the most when you are in insurance business?

The kind of claims experience you’re providing.
a. Experience - Build the right interfaces for the customers and API integrations for the Insurance companies in the background.
b Metrix to be chased - Claims NPS
The right risk assessments and fraud checks
a. Experience - Risk and fraud assessments are most important to build and maintain trust in the long term.
b. Metrics to be chased - Fraud Rate

Plum’s edge (MOAT)

Short Term MOAT -
a. Quality of Technical product (Employee using the mobile App / HR using the dashboard for administrative tasks)
b. Ability to simplify the experience of sales (Customizable Insurance covers)
c. Ability to deliver a smooth claim experience to the end-user.
Long Term MOAT -
a. Strong Brand
b. High Trust.
[ Based on my experience, I've found that Fintech and Insurtech are fields where trust is paramount. After all, customers are relying on us with their hard-earned money, so there's no room for error. Moreover, these areas can be pretty complex for the average person, making word-of-mouth a powerful tool for acquiring new customers. That's why building a strong brand and earning high levels of trust can pay off big time in the long run. ]

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