Atom Payment Gateway: to achieve IRDAI's Goal 2047 - PayU EMI

In order to achieve the Insurance Regulatory and Development Authority of India's (IRDAI) 2047 target, PayU is working on restructuring its insurance portfolio. It is a well-known fact that 'prevention is better than cure', but health insurance is still not a common investment term for many people in India. As a result, a large portion of the population struggles to finance routine household medical expenses.

According to India's health insurance statistics, 31% of hospitalisation costs are financed through loans, while 47% are paid through the sale of assets. In addition, 70% of Indians spend their entire income on healthcare, while 3.2% are impoverished due to excessive healthcare costs.

The 2047 target set by IRDAI aims to bring 1001 TP3T of India's population under insurance coverage by 2047. However, there are still about 400 million Indians who do not have health insurance coverage due to various reasons.

Regarding the reasons for low insurance penetration: studies have shown that there are multiple reasons why people may not opt for insurance including:

Four main reasons why Indians drop insurance:

The problem of high premiums, 4 out of 10 people think insurance premiums are too high and this makes them drop their insurance. Take the example of a family of four - a couple and their two children. In order to get Rs. 1 lakh health insurance, they need to pay a premium of around Rs. 25,000 per annum. Since 80% Indian families have a monthly disposable income of less than Rs 20,000, paying the premium in one lump sum is a challenge for them.

How PayU supports the insurance industry through EMI integration:

PayU understands that customers are interested in purchasing, but may be limited by their budget. We endeavour to best support our partner companies in providing the best affordability solutions to their customers. Insurance penetration through PayU's EMI integration.

Our portfolio includes the best EMI schemes - be it credit cards from 16+ issuers or debit cards from 6+ issuers. Those who don't have a credit or debit card can opt for cardless EMI supported by 6+ partners.

PayU has the highest issuer coverage in the industry. One of our partner companies, a leading health insurer, trusts our affordability suite and has seen an average monthly increase of 1,331 TP3T in conversions.

This is just the beginning and we aim to support insurance penetration through PayU's EMI integration while empowering the insurance business to help IRDAI achieve its 2047 goals.