ValuEnable

Segment – Lending B2B; ValuEnable is engaged in solving complex problems for life insurance companies.

https://valuenable.in/

About

Founded in 2021, the company serves the insurance industry by trying to optimise the value of traditional life insurance policies for the customers as well as for the providers. The firm provides 3 main services – customer retention tools, policy loan marketplace, and a policy assignment platform. It also works directly with insurance companies to educate clients on why need to continue with their insurance policies.

ValuEnable has one institutional investor Rainmatter Technology and a number of angel investors.

Key Staff

Mithil Sejpal, Founder – previously worked with hdfc life as an avp- actuarial, senior manager, also worked at jardine lloyd thompson india as as actuarial analyst. He is FIA, qualified actuary from institute and faculty of actuaries, completed CFA form  CFA institute, b.com in accountancy from r.a.podar collage of commerce & economics.http://www.linkedin.com/in/mithil-sejpal-b7633819/ 

Satprem Mohanty, Co- Founder – has worked in the insurance industry since 2014 including at Tata AIA Life Insurance, HDFC Life, Max Life, ICICI Prudential Life. Bachelor of Technology in Instrumentation & Electronics from College of Engineering and Technology, Bhubaneswar. PGDM from IIM, Bangalore. http://www.linkedin.com/in/satprem-mohanty-8567b41a/

Philosophy/key insight

The key insight is to minimise lapses of life policies in India. The company first tries to educate the customer, then arrange a loan against the policy, failing which it helps with assigning it to a third-party investor who will probably pay higher than the surrender value, thereby creating better outcome for both sides.

The main products offered by ValuEnable are –

• Content and Delivery Stack that provides useful information and services to help policyholders better understand their insurance policies,
• Policy Loan Marketplace that gives policyholders a place to look into borrowing against their policies for financial flexibility, and
• Policy Assignment Platform that streamlines the policy transfer process and gives policyholders the ability to manage their policies in accordance with their changing needs. 

The content service asks for details of the insurance policy, then estimates the surrender value and then appears to show scenario illustrations of what the surrender values would be for different courses of action –

The loan service shows a number of loan providers –

The policy assignment process –

Media

Why you need to stick to your Existing Term Insurance plan ValuEnable Private Limited, 24Nov, 2021,  https://youtu.be/62loJqiwtBY 

The head of operations and training at Value Enable, Ravi Badrappa, introduces a video from the company’s “Insurance Enable” series. They specialize in helping customers make informed insurance decisions and offer more life insurance liquidity options.  

The emphasis of the video is on term insurance plans, which are described as offering fixed-term financial security in the event of the insured person’s early death. During this time, premiums are paid, and the insurer guarantees to make a predetermined payment (sum assured) to the nominee in the event of the insured person’s passing. Term insurance policies allow for flexible policy wording, premium payment schedules, and the ability to raise the amount assured. Some plans even offer a complete premium refund upon maturity, but they charge higher premiums. Existing policyholders are advised to keep their term plans active because later coverage can become more expensive as premiums rise with advancing age and changing health. In India, the cost of term insurance has also recently increased.

Three important points are highlighted: Term plans typically do not offer surrender value, but some may offer reduced life coverage if premiums cannot be paid. Policies that have expired can frequently be reinstated within a predetermined time frame, giving the benefit of lower premiums at a younger age. It is advised that policyholders consult their policy documents for information on the terms and conditions of revival, which may include new medical examinations.

Demographic Effect on Life Insurance Business in India, Insurance Institute of India, December 7, 2022

https://www.insuranceinstituteofindia.com/documents/6454111/6454500/The+Journal_Jan-Mar+2023.pdf

Effective policy formulation by regulators should take into account the demographic structure of the country as a fundamental consideration. Focusing solely on factors like technology, infrastructure, and ease of doing business may provide short-term benefits, but for sustainable long-term success, understanding the demographic makeup is crucial. This is especially true in the context of life insurance, as it relies heavily on individual demographic factors. Additionally, it is imperative to assess the geographical distribution of life insurance and make concerted efforts to enhance penetration in regions with low coverage. 

Marketing strategies should be tailored to the specific product, target audience, and location of the potential policyholders. Promoting the significance of life insurance among both men and women is essential, as is emphasizing the advantages of securing insurance early in life. Insurers must stay well-informed about demographic shifts within the country to refine their underwriting processes effectively. Encouraging rural agents through competitive commissions can facilitate greater participation in selling insurance in rural areas, where there is substantial untapped potential. 

Analyst questions

Provide an overview of the problem you are trying to solve. What is the split of insurance policies sold in India amongst different types of policies? How big is the issue of surrenders of life insurance policies?

Why do most policyholders surrender?

What proportion of the ones you deal with do you provide ‘education’, loan and assignment services?

How does the content stack work? Do you provide the ‘education’ for the insurance company to deliver to the policyholders or do you provide it directly? Do you create content for each specific insurance company? How do you get the scenario illustrations for each company? How do you deliver these to the policyholders?

Please explain the economics of why someone should take a loan against rather than surrender the policy?

How does the assigment process work? Is there a secondary market for such policies? what kind of returns are available? Does anyone provide advice/research or funds to the investors for this ‘asset class’?

Have you done any research on the ‘asset class of insurance secondaries’ – what is the risk/return for investors?

Prepared by – Jayesh Baviskar, July 2023