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CoverSure launches prepaid insurance gift cards targeting Gen Z and first-time buyers

Our read

Insurance gift cards will evolve less into a standalone gifting category and more into a corporate rewards and embedded-distribution funnel that lowers acquisition costs for insurers targeting young, underinsured consumers.

For operators

CoverSure’s prepaid gift cards turn insurance into a familiar retail purchase, giving brands and employers a low-friction way to reach Gen Z and first-time buyers through gifting and distribution partnerships.

Watch

Post-festival card sales, redemption rates and the share of recipients who purchase a first policy versus renew an existing one.

The report,

Insurance aggregator CoverSure launched prepaid insurance gift cards on its app, targeting Gen Z and first-time buyers. The cards can fund new or renewed health, life and motor policies, with early interest from corporates, self-help groups and industry associations.

CoverSure's prepaid insurance gift cards can be loaded from ₹100 to ₹10,000
Prepaid gift card load range
₹100 to ₹10,000
Insurance partners
23 insurance partners

Reported figures

From the report. Source details below

  • ₹100 to ₹10,000 prepaid card load range
  • 80 lakh people hold term insurance in India
  • 5 to 6 crore people covered under health insurance
  • 50% to 60% of insurance policies lapse within five years

Other figures

  • 23 insurance partners

What to track next

  • Average card denomination and the proportion of policies requiring additional customer payment.
  • Announcements of insurer, broker, wallet, retail, corporate-benefits or e-commerce distribution partnerships.
  • Regulatory guidance on prepaid instruments, insurance solicitation, KYC, gift-card expiry, refunds and unredeemed balances.
  • Competitor launches from insurers, insurtechs, digital wallets or employee-rewards platforms.

The counter-case

The case against this reading — not reported by the source.

Gift-card framing may make insurance feel accessible, but it does not remove the real barriers: underwriting, KYC, policy selection, exclusions, claims trust and recurring premium affordability. A ₹100–₹10,000 balance may be insufficient for meaningful cover, while recipients could face top-up requirements or discover that the card cannot be used for the policy they need. Seasonal gifting may generate promotional volume rather than durable policy adoption, and corporate distribution could become a costly employee-perk channel with low conversion or renewal rates.

The source

Source Read the source at The Hindu BusinessLine

Published

First seen