New kid on the block: Toffee Insurance eyes $1 million funding, to target first-time policy buyers

The newest entrant to the insurance sector, Toffee Insurance, is looking to simplify products and get individuals below the age of 30 years to buy their first policy. In an interaction with Moneycontrol, Rohan Kumar, CEO and co-founder of Toffee Insurance said that they are looking to raise USD 1 million to grow their business.

"We have started off a few weeks ago with six insurance partners. Our idea is to have products that are simple to understand and easy on the wallet," said Kumar. They will act as the corporate agent for the insurers.

Toffee, he said, was built to bring the younger population into the insurance fold, especially since the mainstream insurance companies were not doing much on this space. He added that the thrust will be to have a complete digital sales process without any assisted sales.

The team which consists of 10 members could go upto 20 as the volume of the business increases, said Kumar.

In the initial stage, Toffee Insurance has launched a dengue-care product from Apollo Munich as also a globetrotter travel insurance for medical emergencies. They also have a StayFit product that will incentivise healthy behaviour like exercising.

Even those who are traditionally charged a higher premium will be encouraged to buy their first product, said Kumar. Toffee Insurance has a smoker's insurance which is essentially a cancer cover for individuals who smoke. This has a lock-in premium as well.

"We have made it clear that pre-existing conditions will not be covered. To ensure that customers are able to understand the terms and conditions properly, we have simplified the product brochures as well," he explained.

In the next few weeks, Toffee Insurance will be launching insurance covers for backpackers including outpatient expenses as well as renters cover that will cover the personal belongings  of the individual on rent for upto Rs 1 lakh.

Kumar said thar the premiums for their products will remain between Rs 500-1300 so as to inculcate a behaviour of buying insurance. The company is entering into partnerships with several digital entities in the next few weeks and will promote its products through their platforms.