As India’s insurance sector continues to face challenges of low penetration and rising healthcare costs, innovative financing models are emerging as a crucial enabler of accessibility. Premium financing, once seen as a niche offering, is now gaining momentum as a practical solution to overcome affordability barriers for millions of underinsured Indians.
In this exclusive interaction, Hanut Mehta, CEO & Co-Founder of BimaPay Finsure, explains how the company is transforming insurance payments through EMI-based solutions, navigating regulatory frameworks, and building a technology-driven ecosystem to make financial protection more inclusive, scalable, and efficient.
Q1: Insurance penetration in India remains relatively low. Do you believe premium financing can significantly bridge this gap, or is it only a niche solution for certain customer segments?
Premium financing is a fundamental access tool, not a niche luxury. In India, the barrier to insurance is not just awareness, but also the liquidity constraint of paying large annual premiums upfront. By converting a bulky one-time cost into manageable monthly EMIs, we align insurance with how Indians already pay for essential services. For the underinsured “missing middle,” this transforms insurance into a predictable monthly expense, driving mass-market adoption.
Q2: Many consumers are wary of taking loans for insurance premiums. How do you address concerns around borrowing for financial protection products?
We see it as liquidity management, not just debt. Borrowing for consumption may be risky, but borrowing to secure health or life coverage is an investment in financial resilience. Avoiding insurance due to upfront costs can lead to far greater financial stress during emergencies.
Q3: Digital lending in India has faced increased regulatory scrutiny. How has this impacted BimaPay’s operations?
Regulatory clarity from the RBI has been a tailwind. It has filtered out unsustainable models and validated our approach. We operate strictly as a Lending Service Provider (LSP), partnering only with RBI-regulated NBFCs and IRDAI-approved insurers. Our processes fully comply with Digital Lending Guidelines, ensuring transparency and secure fund flows.
Q4: BimaPay is known for offering one of the shortest financing journeys. How do you balance speed with compliance?
Speed and compliance go hand in hand with the right technology. We use intelligent automation and advanced KYC integrations like DigiLocker and name-matching APIs to verify users in real time. This reduces friction, eliminates manual errors, and ensures full regulatory compliance.
Q5: What benefits does premium financing bring to insurers?
It acts as a revenue and retention accelerator. Financing removes “premium shock,” enabling higher-value policy sales and better persistency. Insurers receive the full premium upfront with zero credit risk, while we manage the EMI lifecycle.
Q6: Will premium financing become a mainstream option in India?
Absolutely. With medical inflation around 14%, insurance is becoming essential but more expensive. Premium financing is following the same path as smartphones—moving from luxury to necessity through EMIs. Demand is already strong across retail and SME segments.
Q7: What challenges have you faced in scaling premium financing?
The biggest challenge has been ecosystem integration—aligning insurers, lenders, and digital customers. On the adoption side, it required shifting agent mindsets to present financing as a primary payment option rather than a fallback.
Q8: How does BimaPay differentiate itself from other fintech or BNPL solutions?
Unlike general BNPL products, BimaPay is policy-backed and purpose-driven. This significantly lowers risk, helping us maintain an industry-low NPA of under 0.2%. Our underwriting is tailored for insurance, making us a specialized insure-fintech platform.
Q9: How do you ensure transparency in a fast digital journey?
We prioritize informed consent. Customers receive a clear Key Fact Statement (KFS) outlining APR, total cost, and EMI schedules in simple language. Our visual-first interface ensures complete transparency before final approval.
Q10: Which segments are driving adoption?
We see strong adoption across SMEs, existing policyholders upgrading coverage, and middle-income first-time buyers. These segments benefit the most from converting large premiums into manageable payments.
Q11: Do you expect regulatory frameworks for premium financing in India?
Yes. As the market grows, we expect structured regulations similar to global markets like the US and UK, ensuring protection for all stakeholders.
Q12: What are your future plans?
Our vision is to become the financial operating system for the insurance ecosystem. Beyond premium financing, we are expanding into corporate solutions and Surrender Value Financing, with plans to build more specialized financial products.
