Interviewed By Akhlaqur Rahman Sachee, Team MBR

Formed in 2019, Bimafy is the first online insurance marketplace in Bangladesh. The startup is currently working with eight insurance companies to provide their retail solutions online and is also providing tailored solutions with embedded policies across multiple companies in the country. Bimafy works with currently available technology to enable and enhance insurance policy distribution, individual management of policies, product design, claim management, and user understanding. The co-founder and CEO, Mr. Alvi Nizam, worked in multiple roles at the largest general insurance company, the most recent of which was heading their research before the formation of Bimafy. He also worked with multiple other insurance companies at some point in his career, including both life and general insurance. He has an interest in FinTech technologies and hopes to help build a better transaction and risk management infrastructure for the country and contribute globally. Team MBR was in a conversation with the founder and CEO of Bimafy, Mr. Nizam, and had the opportunity to learn about his inspirations behind forming the startup and his future aspirations surrounding Bimafy.

Akhlaqur Rahman Sachee: You yourself worked for one of the most prominent insurance companies in Bangladesh for around two years and later founded Bimafy in 2019 with the aim of making insurance solutions available to everyone on a digital platform. Would you kindly share with us how your past experience helped you form the startup? And what were your motivations for coming up with the idea to form the first digital insurance platform in Bangladesh?

Alvi Nizam: During my tenure with an insurance training organisation, I collaborated with numerous insurance companies, gaining valuable insights into the industry. Additionally, my role in the research wing of an insurance company provided me with an opportunity to delve deeply into the insurance landscape of Bangladesh and similar markets worldwide.

Throughout my career, I have engaged in countless discussions and worked in multiple roles in the insurance industry, exploring the reasons why Bangladesh is yet to reach global standards in the insurance industry. It became apparent that leveraging modern technology is essential for advancing insurance solutions globally.

Seeking to gain a better understanding of technology, I transitioned to a tech company after leaving the insurance industry. However, my calling for revolutionising the insurance sector persisted. Alongside an ex-colleague from an insurance company, a client working with micro-insurance, and a developer friend who had just arrived in Bangladesh, we embarked on a journey to effect change and improve people's lives through innovative insurance solutions.

Akhlaqur Rahman Sachee: There are numerous factors that determine the right insurance policy for an individual, e.g., the risks for which coverages are needed, the expected amount of coverage, the budget for insurance premiums, and so on. May we know how Bimafy helps its clients pick the right insurance products for them?

Alvi Nizam: When determining the usefulness of an insurance policy, several factors come into play. Firstly, the purpose of the coverage. For example, protecting against financial disruption in the event of a mishap that affects a parent's financial stability, impacting their children's lives, Next, the type of coverage needed and the optimal coverage amount to safeguard assets effectively. For instance, in Bangladesh, there are two popular types of health insurance policies: one providing a fixed daily payment during illness and another reimbursing total expenses incurred. It is essential to evaluate which type suits your needs best, considering that preferences vary from case to case. Additionally, the coverage limit. It is important to determine the amount necessary to cover potential expenses during a health hazard, ensuring compatibility with preferred healthcare facilities. Budgetary considerations also play a crucial role. The clients need to balance expected expenditures against the insurance policy's coverage to arrive at an appropriate spending plan.

The Bimafy platform offers comprehensive assistance in this process. Users can explore policies from multiple insurance companies, compare types of coverage, and select policies tailored to their needs. With access to a wide range of options with various prices and propositions in one place, users can make informed decisions and enjoy the convenience of a premium claims service with a free claims assistance program. The platform also provides easy access to information about policies and insurance companies to compare, order, and stay at ease.

Users also benefit from the Bimafy app, which facilitates policy management, provides updates, and offers additional benefits. Ultimately, Bimafy aims to streamline the insurance journey for users, from inquiry to delivery, ensuring a seamless and efficient experience.

Akhlaqur Rahman Sachee: The global average insurance penetration ratio was around 7% in 2021, whereas it was merely 0.46% in Bangladesh, which clearly indicates the reluctance of the individuals here to subscribe to insurance policies. Would you kindly share with us how Bimafy is raising awareness among the masses to address this issue?

Alvi Nizam: Bimafy is dedicated to creating informative content that educates users about the benefits of insurance. From the outset, we prioritise informing individuals about the practical uses of policies and the importance of insurance coverage. Our online platforms, including the website and other digital channels, are designed to be informative yet intuitive. We have implemented features to guide users through the insurance selection process, ensuring they are well-informed about the policies they are considering. When comparing policies on Bimafy, users can easily identify and understand the features, with transparency being ensured throughout the decision-making process.

Our efforts to raise awareness extend beyond traditional marketing channels. We are actively engaged with social media communications, disseminating knowledge about the benefits and uses of insurance. We have published multiple case studies and research articles. We also collaborate with third-party partners to amplify awareness about insurance. We have also proactively sought input and support from industry experts and regulators, who have been instrumental in advocating for the benefits of insurance and supporting our initiatives. Together, we have conducted various awareness campaigns and events to emphasise the significance of insurance and insurtech in today's world. 

Akhlaqur Rahman Sachee: In 2021, the claim settlement ratio in Bangladesh was around 68%, whereas the global claim settlement ratio was around 98% on average, which is one of the reasons for the Bangladeshi people not being interested in insurance policies. May we know about the screening process that insurance companies have to go through before being onboarded on Bimafy’s platform?

Alvi Nizam: In Bangladesh, there are various reasons for issues related to insurance claims. One aspect worth mentioning is that, before 2021, the motor-act liability insurance policy, which was developed around 1984, remained largely unchanged despite significant developments in the automotive industry. Thus, there were no claims, and people who did claim were not even covered in most of the cases, which led to such an issue. Unfortunately, this outdated policy was discontinued in 2021, leaving vehicles on the streets without any form of motor insurance, a situation uncommon in many other countries. However, there is growing awareness of this issue in Bangladesh, prompting the exploration of new policy solutions that are more relevant to users' needs. 

At Bimafy, we collaborate with multiple insurance companies, currently hosting policies from eight different providers on our website. We carefully select these companies based on their unique value propositions, whether it is a specific policy or a standout feature. We ensure that we work with compliant companies that are willing to adapt to the usage of technology to make their own processes faster, to commit to deadlines for delivery, to be accessible for communications, and to be prompt in their settlements.

Akhlaqur Rahman Sachee: Bimafy has signed agreements with multiple corporate entities, such as ShareTrip, Foodpanda, Nagad, Aziz Auto, and so on. Would you kindly share with us how corporate entities can benefit from being in partnership with Bimafy?

Alvi Nizam: We collaborate with numerous other companies, offering them significant benefits through the digital enablement of policies and prompt service delivery. These companies manage their policies via the Bimafy B2B portal, leveraging our digital enablement services. This arrangement also enables them to activate policies in real-time through portals and API connections.

Enabling services digitally can be time-consuming and financially unfeasible for insurance companies. In such cases, we step in to enable policies for these companies. This allows them to focus more on product development and risk management while we handle the service delivery aspect. It is a win-win solution for both parties involved, enhancing efficiency and effectiveness in the insurance ecosystem.

Akhlaqur Rahman Sachee: Bimafy itself is not an insurance company, but it offers insurance solutions to its clients with the help of third-party insurance companies. May we know about the profit-sharing model between Bimafy and its stakeholders?

Alvi Nizam: The revenue model varies between retail and embedded policies. For these policies provided online, we charge insurance companies a digital enablement fee. Insurance companies already have provisions in their policy pricing to adjust for distribution and promotion, so we do not add any additional charges. Therefore, policies on the Bimafy platform are generally priced the same as those sold directly by insurance companies themselves.

Akhlaqur Rahman Sachee: As the claim settlement ratio is low in the country, disputes may often arise regarding claim settlement. How does Bimafy mitigate disputes regarding claim settlement or other complaints from the clients’ end?

Alvi Nizam: We assist the clients in organising their claims filing, which helps the clients claim for their policies easily and also in turn helps the insurance companies as they receive an already assessed file for claims, which expedites the filing. This also lessens the disputes since we are also aware of the clauses and terms that we can resolve with the clients before the assessment of the insurance companies. Moreover, the whole journey of a policy purchase is designed to provide organised access to the most information with ease, and hence, when customers come to the platform, they are more aware of what they can do. Even then, if there are disputes, we meet customers in person to try to resolve any remaining issues and find room for improvement.

Akhlaqur Rahman Sachee: Bimafy is a growing platform that has already raised an investment of BDT 1 crore from Startup Bangladesh Limited. Would you kindly share with us how Bimafy is planning to scale up its operations in the near future?

Alvi Nizam: Bimafy has been strategically navigating the dynamic landscape of the insurance market since its inception, leveraging the initial investment from Startup Bangladesh Limited to fuel our growth. Recognising the evolving trends in both local and international markets, as well as shifts in investment dynamics and consumer preferences, we have proactively diversified our portfolio to mitigate risks effectively.

As we look ahead, our focus is on optimising operations for scalable growth. While diversification has been instrumental in navigating uncertainties, we are now poised to streamline our operations and double down on areas of strategic advantage. At Bimafy, agility is ingrained in our DNA. We are committed to embracing flexibility and continuously refining our approach to stay ahead of the curve.