To Break into the Personal Insurance Market, Plum will Invest $6 Million Over the Next 2 years

Nitin Konde, Varun Bhardwaj

24 Feb 2025 — 2 min read

Plum to Invest $6M in Personal Insurance Expansion

With a goal of 10 million lives covered by 2025, insurtech platform Plum has announced that it will invest $6 million over the course of the next 24 months to enter the personal insurance market. Atul Mishra has been selected to lead the sector.

Plum said in the news release that the firm wants to make it easier and more accessible for people to get health insurance. Plum is now implementing its technology-driven, customer-first strategy to satisfy the increasing demand in the personal insurance market, having previously managed more than $120 million in premiums through its corporate health insurance business. Given the significant gap in health insurance coverage in India and its corporate insurance business with companies like Tata, Twilio, and Zomato, Plum views this as a chance to close the gap between Indians without proper coverage and employer-sponsored insurance.

Plum Sees Strong Potential in this Domain

With more than 400 million Indians now lacking proper coverage, Plum's co-founder and CEO, Abhishek Poddar, stated that the company sees a rare chance to close the gap and offer more transparent, accessible, and reasonably priced solutions. Beyond merely marketing insurance, the company's goals are to enhance health outcomes, lower hospitalisation rates, and eventually make health care affordable for all.

Poddar went on to say that the business has conducted a pilot study with its current clientele. Nearly 4 to 5% of Plum's user base has taken out personal insurance in the first few months of the platform's introduction. Although opening it up to members outside of Plum is eventually planned, the company is probably a few months away from doing so, most likely this year.

Plum Operations Till Now

According to Plum, which was co-founded in 2019 by Abhishek Poddar and Saurabh Arora, its corporate health insurance business has processed over $120 million in premiums. It now seeks to provide people with the same technology-driven approach. Plum will incorporate personal insurance into its current mobile platform, which provides wellness initiatives, telehealth services, and claims support to over 1 lakh active customers. Supported by investors such as Tiger Global and Peak XV Partners, the company anticipates processing more than one lakh personal insurance claims this fiscal year. Plum is one of many Indian fintech and insurtech companies that are placing significant bets on personal finance solutions. These consist of InsuranceDekho, GoDigit, and PB Fintech.

In contrast to the industry norm of four to five hours, Plum's AI-powered platform has achieved a 95% customer retention rate, a Net Promoter Score (NPS) above 70, and an average cashless claim settlement time of under 30 minutes. Plum's growth is in line with India's growing need for transparent, reasonably priced health insurance, as the personal insurance market is expanding at an annual rate of 18%.