Fintech unicorn Cred has expanded into insurance distribution, starting with motor insurance. Cred uses its vehicle management platform, Cred Garage, to offer insurance products.

Based on users’ credit scores, Cred provides additional discounts to make these offers more appealing, according to Akshay Aedula, head of product and growth.

Cred’s Garage platform allows users to monitor vehicle expenses, track traffic fines, and manage insurance and pollution renewal dates. It also offers roadside assistance. While vehicle management is free, Cred earns revenue through commissions from insurance companies.

Launched in September last year, Garage has 7 million registered vehicles and 4.4 million users, with some managing multiple vehicles. Cred has 13 million monthly users, with about 11 million actively transacting.

Cred’s philosophy is to reward good behaviour, so it partnered with three insurers to create a product offering extra discounts on premiums for customers with strong credit scores, according to Aedulia.

Cred holds a corporate agency licence from IRDAI, allowing it to work with Zurich Kotak General Insurance, Go Digit General Insurance, and ICICI Lombard.

A corporate agency can partner with up to nine insurers; an insurance brokerage licence is required to collaborate with more.

Cred is expanding its partnerships with additional insurance companies and has received approval for its insurance product from IRDAI, according to Aedulia.

The company’s entry into insurance completes its range of financial services, which began with credit card bill payments and expanded into UPI, credit, and wealth management. 90% of its revenue comes from payments, credit, and insurance.

Cred focuses on personal finance distribution and operates an in-house non-banking finance company, Newtap Finance. It also acquired Kuvera for its wealth management service in February 2024 and has built its own insurance distribution business through Garage.

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