PolicyBazaar is an online platform that enables users to compare, analyze and buy life, health and motor insurance products. PolicyBazaar is a product, a brand and a service compare. The CEO of Policy Bazaar is Sabvir Singh and has also received a total of $542.2 million in funding. Founded in 2008 by Yashish Dahiya and Alok Bansal, it is the largest insurance website in India. The main motive of Policy Bazaar is to simplifying the buying process to facilitate product comparisons.
The comparative analysis of various insurance policies is based on the price, the quality and the key benefits. This empowers customers with accurate information on insurance products and helps them make informed purchases. PolicyBazaar has a market share of 50% in the online insurance space, by pitching the right product to the right customer at the right stage of his life. The online firm off insurance across categories like life, health, motor, travel, general and corporate insurance.
| Company Name | Policy Bazaar |
|---|---|
| Headquaters | Gurgaon Haryana |
| Founded On | 2008 |
| CEO | Sarbvir Singh |
| Employees | 13,000 |
| Annual Revenue | $29 million |
| Sector | Life and Health Insurance |
It has over 100% growth rate for the past three years and has 300,000 transactions every month and also has almost 50 insurance brands on its portal. To enable this blistering rate of growth we need to ensure that more and more people buy insurance online. The only way to achieve this is by serving the customers better in order to sustain the growth of the company.
StartupTalky
Business model for Sustainability
The reason Policy Bazaar has been successful in the industry is because of it lead generating company. In India people don’t buy Insurance easily and prefer to go through a long analysis before buying an insurance. From the beginning, the insurance agents used to help the customers to make this decisions. But with the increase in availability of huge number of options in insurance segments too, the agents might get biased by the companies providing huge incentive.
PolicyBazaar has a solution for as it provides value proposition of simplifying the buying process of insurance policies and provides and comparison of various schemes available in the market. It analyses the various products on the basis of price, quality and key benefits. As a policy web aggregation, PolicyBazaar empowers its customer with the accurate information which indeed helps them to make a buying decisions.
PolicyBazaar started out with a business model that revolved around giving information to customers. And based started to concentrate on aggregate that’s when the business started picked up. They now handle insurance deals end to end such that the payment collection and even the claims support is provided by them. It analyzes the lifestyle and medical history of the family to draw an analysis as to what diseases a consumer may get affected by in the near future and suggest insurances products based on that Policybazaar also a huge gap in market.
Customers are aware of the insurers operating in segments. However, the Fin tech is an open market place allows comparison and enables the consumer to actually evaluate the value being offered by products. Unlike the other offline players, all the data available to PolicyBazaar as it resides in a central repository. It has 5 to 6 years of customer data. One of other main focus areas is to get into innovative product based on customer profiles. The products are digitally sold on policybazaar and are exclusive products that will transform the way people purchase insurance.
Another way it is being sustainable is by following the run strategy and adds new feature and technology to provide enhanced customer experience. The mobile apps in android and IOS platform where a customer can not only search, compare and buy insurance through the PolicyBazaar app but can use interesting features like hospital locator, garage locater and insurance premium calculator and instant renewal of insurance policies and claim assistance and more.
StartupTalky
The competitors in the industry
The major competition for PolicyBazaar in the online policy marketplace is companies like Bank Bazaar and Acko. This market space is very competitive and are able to show value for money to the consumer in the order to remain relevant. But the Policy Bazaar has increased its level of transparency in product feature, cost and services. To rise to the competitive forefront these market players are realigning their business models according to what the consumers’ needs and expectation of the future target groups.
The ecosystem services can not only help you build loyalty but also to increase profits in the long run. The insurance landscape in India is surely seeing a shift but is still traditional up to a certain extend and also another difficulty is motivating customers online. A cording to the report by PWC 275 of the insurance buyers still rely on the word of mouth while the other 22% believe in agents making them 50% of the online users together. The other 50% rely on online aggregators, out of which 20% rely on Policy Bazaar to develop a future ready strategy.
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.
StartupTalky
Strategies to compete in the market and become profitable
Policy bazaar currently has 70% of the sale of overall online insurance which is done through online lead generation segment where insurance aggregators sell lead to insurers. It dominates the market with 4 out of 5 leads through internet as it is claimed by them. There are 100 million visitors each year and more than 250 insurance plans on the platforms. Hence why the company focus should be on increasing positive network effects by attracting more users.
There is a multi-homing cost and doesn’t charge its users. The user can also switch to different platforms easily so they could provide a unique value preposition from different insurance companies to its users. Policy bazaar also focuses on providing complimentary services besides insurance policies and is planning to become the one stop solution. It is also planning to start its new vertical in the financial services.
StartupTalky
Policy Bazaar Adopting Amazon Polly
In 2017, when the number of transactions grew to 250,000 a month from 120,000 a month previously. Policy Bazaar managed nearly 100 million customer queries over the phone 2017. The company was growing exponentially and needed innovation to balance out the equation. Which is why Policy Bazaar adopted Amazon Polly a text to speech TTS solution, to take its customer service to the next level.
It uses Amazon Polly for Voice Broadcasting critical voice alerts and inbound calls.
Amazon play a huge part in the success of Policy Bazaar as it made a different to enable them to shift from sharing one size fit all pre-defined responses to customer queries such as your documentation is pending or something is wrong with your uploads. With Amazon polly our system identifies the customers and generates a voice call that resolve their queries on a personal basis.
Based on the success of PBee, Amazon Polly powered interactive voice response IVR engine and intends to build a voice bot called PBee Talk that uses Amazon Polly for post-sales support. It enables customers to speak to them at their toll free number and get answer to their queries on policy status, etc. This will be achieved by integration of text to speech and speech to text feature. This is one of the main reason for the sustainability of Policy Bazaar.com despite its completion from other fintech players like Bank Bazaar and Acko.
Author: PV Vyshnavi
Source : https://startuptalky.com/policybazaar-sustainable-fintech/
Date : 2020-09-05T10:13:29.000Z