PolicyBazaar Insurance: A little background
PolicyBazaar Insurance started in 2008 at Gurugram when Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar started their website called PolicyBazaar. At that time the Insurance industry lacked transparency and people used to buy policies from an agent. Their website basically made it easier for the customers to make easy and better choices while buying insurance policies.
Today, PolicyBazaar processes nearly 25% of India’s life insurance and over 7% of country’s retail health cover.
Frauds and scams were common, as agents would hide important details of the policies as well as charge a hefty amount for their consultation.
What PolicyBazaar did was that they scraped the layers of the system and listed down all different policies from different companies under one umbrella to help people compare and choose their policies wisely. There were many comparison websites out there for technology and automobiles but none for Insurance policies.
Why PolicyBazaar Worked?
PolicyBazaar Insurance, or simply PolicyBazaar, has many reasons which worked in its favor. Below are few of them:
- No fee
- Transparency between the customer and the insurance company.
- They helped the customers to compare and choose the right policy according to their needs.
Watching the responses and the growing speed, the company started selling policies on their own website. This really boomed their growth as customers bought policies directly from the website after comparing it, without any extra fee.The customers took their own decision rather than consulting an agent.
You can contact policybazaar customer care for policy related inquiry.
Challenges Faced By PolicyBazaar
Customer Inertia: People still tend to buy policies from an agent rather than buying it online. Around 55% of Indians still buy insurance policies through agents or brokers because of the complex structure of the policy bonds and low trust in online transactions.
Conversion: To move the customers from an offline mode to the online has been tough. As in India, people rely more on offline mode of transaction especially where money is involved.
Regulatory Framework: The biggest challenge for Policybazaar has been to accommodate their business model into the regulatory framework.
- Cover Fox
- Easy Policy
- Turtle Mint
How did the idea of PolicyBazaar Insurance come up?
After getting scammed by an agent, YashishDahiya (Founder) realized that he was a small victim of a bigger fraud that was happening in the country. He, along with the other founding members, created a portal where people could clearly know what they are buying. Transparency was the key in the success of Policybazaar.
PolicyBazaar Insurance Funding
|Date||Amount Raised||Post-money Valuation||Investors|
|May 2011||Intel Capital|
|Mar 2013||$4.6 m||Intel Capital, Inventus Capital Partners|
|Apr 2013||$5 m||Intel Capital, Inventus Capital Partners, Info Edge|
|May 2014||$20 m||Tiger Global Management|
|Apr 2015||$40 m||Steadview Capital, Tiger Global Management, Ribbit Capital, PremjiInvest, ABG Capital|
|Oct 2017||$77 m||Wellington Management, Tiger Global Management, Temasek Holdings, IDG Ventures India, PremjiInvest, True Northland|
|May 2018||$200 m||$1 b||Temasek Holdings, Info Edge, SoftBank Vision Fund|
|Sept 2019||$150 m||$1.5 b||Tencent Holdings|
|Mar 2021||$45 m|
Future Of PolicyBazaar
As there is a boom of technology in today’s world, PolicyBazaar Health Insurance is sure to grow. Due to the pandemic, followed by the global lockdown and the movement restriction, people were forced to stay at home while relying on online platforms to meet their daily essentials. This paved way for the customers to buy online policies without the hassle of meeting the agent and going through the long talks. Insurance Policy sales saw a huge jump due to covid-19.
The shift from offline to online was tough but it’s happening at its own pace. People have started to trust and rely more on online websites for buying insurance, stocks as well as daily needs since the pandemic.
Related: Shoppable Social Media
Some Facts About PolicyBazaar
- As of today, PolicyBazaar has more than 10,000 employees.
- They have expanded their services to United Arab Emirates.
- PolicyBazaar valuation stands over ₹10,000 Crore by the Fiscal Year of 2020.
- You can avail Life Insurance, Health Insurance, and Motor Insurance.
How PolicyBazaar makes money?
They make money from Lead generation, Advertisements and Policy Sales. While policy sales accounts for only 15% of the revenue, the other 85% accounts for advertisements and lead generation.
PolicyBazaar has really made it easier for the customers to buy insurance and not fall for the traps. This is a perfect example of entrepreneurship which is to identify and solve problems. This came up as a revolution in the Indian market as people do not easily trust online markets. This shift was necessary for India to grow and has eventually helped raise the country’s economy too. It has shut down the scammers from looting the customers by giving false information about the insurance policies.
Many companies came up with similar ideas as PolicyBazaar, but PolicyBazaar has made its reputation in the industry and gained people’s trust through time. Customers now easily choose their policies according to their requirements and buy directly from PolicyBazaar.com.
PolicyBazaar is directly linked with the insurance companies which helps the customers to check the price, benefits, and insurance cover through their website.
There’s no doubt that it saves time and money which is the sole purpose of buying an insurance through online portal. Buying insurance has never been this easy!
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