The 'NBFC for Insurance' in India may just be around the corner.

The IRDAI has invited comments for the proposed 'SAMI' (i.e. Standalone
micro-insurance company) framework.

a. Capital requirements for the SAMI are ₹ 20 Crores (i.e. $2.7M) v/s for
insurance companies = ₹ 100 Crores (i.e. $13.5M)

b. Social upliftment organisations such as DHAN Foundation (Official), UPLIFT
MUTUALS etc, that have been offering mutual insurance, may have a chance to
become regulated 'micro insurers' (this wasn't possible earlier).

c. The venture scale opportunity I see here lies in the Algorithmic Underwriter
(AU) set-up; which would use the 'protected cell company' structure proposed in
these regulations.

The AU would operate as an "NBFC for Insurance"

I look forward to your thoughts, comments & feedback.
As a disclaimer, my startup is not considering applying for any such licence so
I would be happy to speak with Founders/Investors who would like to learn more.

#insurtech #insurance

Originally posted by Rahul Mathur on LinkedIn