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Policybazaar INDIAN INSTITUTE Of MANAGEMENT RAIPUR PolicyBazaar PolicyBazaar is India’s largest aggregator and marketplace of all insurance products. PolicyBazaar helps customers in researching and comparing various insurance policies, helping them in making an informed decision. It offers everything from life insurance, health insurance, motor insurance and other insurance such as travel insurance and group insurance etc. PolicyBazaar has tied up with various insurance brokers which help them in procuring details about the insurance policies directly from insurer. The company offers over 250 insurance plans and around 50 insurance brands on its platform. The platform is designed so that visitors can easily compare insurance plans and can buy plans based on their personal insurance needs. PolicyBazaar doesn’t charge anything for the service. History The idea of PolicyBazaar came in mind of Yash Dahiya when his father had been cheated of a few lakh rupees by insurance agents. The transaction looked clean on the face of it, but reality emerged when looked closely. PolicyBazaar was founded by Yash Dahiya (CEO), Alok Bansal (CFO) and Rahul Agrawal (CTO) in year 2008. PolicyBazaar is headquartered in Gurugram, Haryana. PolicyBazaar was started with 14 hardworking individuals. PolicyBazaar’s parent company is EtechAces Marketing and Consulting Pvt. Ltd. In 2008, PolicyBazaar used to compare the prices of different insurance policies and provided information about the insurance. Now, PolicyBazaar not only helps in buying the insurance policy but it also assists in renewal or cancellation of insurance policy. In 2015, PolicyBazaar app was launched on android and iOS platform. A customer can not only look for insurance policy and buy them. It also provides some interesting features like hospital locator, garage locator, insurance premium calculator, claim assistance etc. PolicyBazaar also adopted Amazon Polly and developed in-house AI chatbot named PBee to improve customer satisfaction. In 2018, PolicyBazaar launched DocPrime, an online medical service platform. DocPrime provides real-time consultation with doctors through chat and call. Within 6 months, website received 1 million unique visitors. COPYRIGHT © 2020 CENTRE FOR DIGITAL ECONOMY, IIM RAIPUR 1 ALL RIGHTS RESERVED PolicyBazaar.com: A Report PolicyBazaar has raised funding of around $476.6 Million in 8 rounds from 15 different investors. PolicyBazaar gets 100 million visitors each year and it sales over 15000 policies per month. PolicyBazaar has been consistently at 100% since 2008. Group Companies PaisaBazaar.com - India's leading marketplace for loans and cards offering everything from low-cost EMIs to high- return mutual funds, making personal finance decisions easy, convenient and transparent. DocPrime - Redefining healthcare services by connecting patients and doctors in real time with online consultations through chat and phone, at the same time facilitating online doctor appointments and lab tests at affordable rates. QuickFixCars - Complete car care aggregator bringing together a vast network of garages, skilled mechanics, free pickup and drop services, car maintenance and repair, and a simple booking process just a click away. PolicyBazaar.ae - India’s largest and most trusted web-based insurance aggregator, now in UAE, empowering people by giving them the option to compare and buy the best insurance plan as per their needs. Awards • Best bank in Fintech by Finance Express Best Bank in 2019 • Best Consumer Awareness Campaign – Silver at Economic Times Brand Equity Kaleido Award 2019 • Leading Fintech Innovator in India by KPMG-H2 ventures Report 2018 • Best Marketing & PR Campaigns at India PR & Communication Awards 2018 • Insurance Innovation Award at The Digital Insurer Global Livefest Award in 2018 • Best Online PR Campaign at Drivers of Digital – Inkspell Awards 2018 • Emerging Star Award at BML Munjal Award 2017 • Insurtech Innovation of the Year at Moneytech Awards 2017 • Award for Best Mobile App Consumer Finance in 2015 by GSF Mobile Appies • Exchange4media Golden Mikes Award 2015 • DMAi Asia ECHO Awards 2015 • CMO Asia Awards 2015 • BAM Award 2015 • Excellence in Operations at Iconic IDC Insight Awards 2015 • IAMAI Indian Digital Awards for best financial website 2013-2014 • Frost and Sullivan Customer Value Leadership Award – 2014 COPYRIGHT © 2020 CENTRE FOR DIGITAL ECONOMY, IIM RAIPUR 2 ALL RIGHTS RESERVED PolicyBazaar.com: A Report Competition in the industry The major competition for PolicyBazaar in the online policy marketspace is companies like BankBazaar, EasyPolicy, PolicyAdvisor and online policy brokers such as Coverfox and Acko. The online insurance marketspace is very dynamic and highly competitive. Insurers are now compelled to ensure their pricing is competitive and are able to show value for money to the consumer in order to remain relevant. By increasing levels of transparency in product features, cost and services, digital channels are levelling the playing field. Traditionally the threat for online policy aggregators like PolicyBazaar are the other similar players who offer similar services of providing the platform not owning the actual product, but with players like Coverfox and Acko who own the insurance and are full-fledged online insurance brokers are making the space even harder to compete. To rise to the competitive forefront, market players are rethinking and realigning their business models and strategies as per customer needs and the expectations of future target groups who soon will be their new consumers in few years. Also, with the decline in relevance of traditional products with decreasing number of customer touchpoints it is utmost important to innovate the existing insurance product/service offerings to meet changing customer behavior and needs. Ecosystem services can not only help you build loyalty but also increase profits in the long run. The Insurance landscape in India is surely seeing a shift but still traditional methods are still very relevant and motivating customers to go online is still a herculean task to do. As per the report by PWC, 27% of the insurance buyers still relies on Word of Mouth, 22% on Agents, this forms almost 50% share of users who still go online for their insurance needs. Among the rest 50% the market is very much fragmented, only 20% of the consumers rely on the online aggregators such as PolicyBazaar, theses 20% are shared among all the players in the market. It is thus critical for PolicyBazaar to develop a future-ready strategy and continue to innovate by having a prudent look at these macro-level disruptions happening in the Indian insurance market and changing consumer behavior. As digital technologies are becoming more pervasive year on year, they are diminishing the barriers to entry such as prohibitive costs and enable the scaling of operations on demand. As a result, the competitive set is bound to change rapidly. Business Model of PolicyBazaar In India, people don’t buy insurance easily. They love to go through thorough analysis before buying an insurance. From the beginning, the insurance agents used to help the customers to make this decision. But with the increase in availability of huge number of options in insurance segment too, many a times, the agent might get biased by the companies providing huge incentive. PolicyBazaar has the unique value proposition of simplifying the buying process of insurance policies and provide comparison of various schemes available in the market. It analyses the various products on the basis of price, quality and key benefits. Being a policy web aggregator, Policybazaar empowers its customer with the accurate information which indeed helps them to make a buying decision. COPYRIGHT © 2020 CENTRE FOR DIGITAL ECONOMY, IIM RAIPUR 3 ALL RIGHTS RESERVED PolicyBazaar.com: A Report Market Segments PolicyBazaar basically targets all the customers in India who want to buy the insurance but has less to no knowledge of insurance segment. Most of the Indians don’t have insurance due to number of reasons, specifically, due to mis-selling or lapsing of policies. BankBazaar, CoverFox, EasyPolicy, PolicyAdvisor, Acko and InsurancePandit are some major competitors of PolicyBazaar in India. Growth Model PolicyBazaar is following “Run” strategy. The company is adding new features and technology to provide enhanced customer experience. The have launched mobile Apps in android and iOS platform too. The platform provides freedom to visitors to check policies and compare them on their aspects.” A customer can not only search, compare and buy insurance through the PolicyBazaar app, but there are also interesting features like hospital locator, garage locator, insurance premium calculator, instant renewal of insurance policies, claim assistance and more.” COPYRIGHT © 2020 CENTRE FOR DIGITAL ECONOMY, IIM RAIPUR 4 ALL RIGHTS RESERVED PolicyBazaar.com: A Report Capabilities RESOURCES • India’s largest insurance aggregator • Business partnership with over 50 major insurance companies including Aegon life, Aviva Life Insurance, Bajaj Allianz, Cigna, Edelweiss Tokio Life, HDFC Ergo, DHFL Pramerica Life Insurance, HDFC Life etc • Series of funding of over $350 million from major investment groups such as Softbank, Infoedge, Intel Capital, PremjiInvest, Tiger Global Management etc. ACTIVITIES • Tie up with insurance brokers • Procure information such as price, benefit, insurance cover etc. • No charges from customer • Revenue is generated through fee from insurance companies for fixed
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