There was a time when finding a customer for insurance policies was very tough in India. There was a recession period in 2008 and, it was already a difficult phase for all the industries. There was a lack of transparency, high lapse rate of policies, lack of information, apathy towards the insurance sector, etc. That is how the idea for the Policy Bazaar came in.
Insurance Sector - Introduction
The insurance industry faced a lot of bad times in the past years. Customers hesitated in buying insurance policies through agents due to various reasons. They used to hide principal facts related to the policies and, a big part went into the agent's pocket as commission.
Insurances are one of the best investment options. But due to the unforeseen losses and chances, people were often reluctant to put money into it.
About Policy Bazaar
Policy Bazaar, founded in 2008, is an insurance aggregator. They help their customers in comparing and buying financial services offered by various companies.
The Policy Bazaar - Key Points
- Company Type - Private
- Industry - Financial Services (Fintech)
- Founded - 2008
- Headquarters - Gurgaon, Haryana, India
- Founders – Yashish Dahiya, Avaneesh Nirjar, Alok Bansal
- No. of employees - 10,000+
- Website – www.policybazaar.com
The Policy Bazaar - Founders
Policy Bazaar got founded by a trio of three visionary people. Yashish Dahiya, Avaneesh Nirjar, and Alok Bansal founded the company back in 2008.
- Yashish Dahiya He is an IIT-Delhi graduate and also holds a diploma in Management from IIM-Ahmadabad. He worked for several companies before founding Policy Bazaar.
- Avaneesh Nirjar He is also an IIT-Kharagpur and BIT graduate. He worked with companies like GE Capital, AT&T India, First Europa, etc.
- Alok Bansal He is an IIM-Kolkata alumnus. He is the co-founder and director of the company. Before this, he worked for Mahindra & Mahindra as a senior manager and finance director at First Europa.
Yashish Dahiya, Avaneesh Nirjar, and Alok Bansal - Policy bazaar founders
The Policy Bazaar - Brand Name and Logo
- Name The name of the company defines their idea. Policy Bazaar is the market of policies where customers can buy any financial services they prefer.
- Tag Line Their tag line is 'Insurance Compare Kiya?'. They offer their customers to compare the policies. Hence their other punch line is Compare, Buy, and Save.
- Logo The Logo of the company is in simple blue color that signifies trust and stability.
The Policy Bazaar - Business Model
The company helps the customers to compare various policies and then choose and buy the most preferred one. It has tied up with several insurance companies for providing pieces of information like price, insurance cover, benefits, etc.
Customers have as many as 40 insurance providers and can make a uniform choice by comparing amongst them. They help the customers in finding the best policy options for them. And the best thing is that they are non-chargeable.
They have partnered with many businesses that offer numerous policies such as health insurance, corporate insurance, car insurance, life insurance, travel insurance, etc.
The Policy Bazaar - Investors and Funding
To date, the company has been successful in raising a fund of $496.6 Million. Some of its fundings are listed below:
- $4.6 Million - Series A by Intel Capital and Inventus Capital Partners, 2013
- $5 Million - Series B by Inventus Capital Partners, Intel Capital, and Info Edge, 2013
- $20 Million - Series C by Tiger Global Management, 2014
- $40 Million - Series D by Tiger Global Management, Premji Invest, and Ribbit Capi, 2015
- $77 Million - Series E by Tiger Global Management, Temasek, Ir, and Premji Invest, 2017
- $200 Million - Series F by Info Edge (India) and Softbank, 2018
- 4150 Million - Series G by Tencent Holdings, 2019
The Policy Bazaar - Awards & Honors
Some of the awards received by Policy Bazaar are:
- Best Financial Website - IAMAI Indian Digital Awards, 2015
- Best Insurance Tech - IAMAI India Digital Awards, 2018
- DMAi Asia Awards, 2015
- BAM Award, 2015
- Emerging Star Award - BML Munjal Award, 2017
- Exchange For Media Golden Mikes Award, 2015
- Best Mobile App Consumer Finance - GSF Mobile Appies, 2015
- CMO Asia Awards 2015
The Policy Bazaar - Competitors
Policy Bazaar, although being one of the strongest players in its sector, still has a lot of competitors. Some of the companies that could give them good competition are:
- BankBazaar
- EasyPolicy
- InsurancePandit
- Acko
- Coverfox
- Policy Advisor
The Policy Bazaar - Achievements
Some of the achievements of the company are:
- Largest insurance aggregator in India
- More than 15,000 policies sold in a month
- More than 100 million visitors annually
- It occupies around 50% of the market space in the online insurance sector.
- Almost 3,00,000 transactions sold in a month
- Growth of 225% in revenues, FY 2017-18
The Policy Bazaar - Growth & Revenue
In FY 2016-17, the company's turnover was INR 49.1 crores. It saw a growth of 225% in the FY 2017-18 and, its turnover increased to INR 159.4 Crores. The company aims to reach its turnover of up to INR 12,000 crores by the end of 2021.
After its latest funding of $150 Million, the company's valuation is over $1 Billon.
The Policy Bazaar - Future Plans
The company has some very innovative and challenging plans for itself. Let's have a look at some of those:
- Growth in revenue up to 1600 crore by the end of 2021
- Underwriting premium worth Rs 12,000 crore by the end of 2021
- To launch its IPO
- Expanding its customer base to 1.25 crore in 2021
- Expanding the company outside India
- Innovating new technology and products for better customer treatment
The Policy Bazaar - Challenges
Policy Bazaar, despite being a massive insurance aggregator, still has a long way to go. There also have a lot of hurdles in their path. Some of the challenges of the company are:
- Customer Inertia People still prefer buying insurance from the agents. It is the task to make them understand the benefits of purchasing insurance online.
- COVID The pandemic has hit every industry severely. The insurance sector has also seen a downward trajectory in its businesses. People are not buying as many policies as they used to buy earlier.
- Insurance as tax saving Customers in India see insurance just as a method to save tax. They have to think beyond that and see the bigger picture. That is why the fourth quarter of the year has more sales as compared to any other quarter.
The company has seen massive growth in a short period and, the expectation is to grow only. People have worked hard in bringing this company to this position. Its success is a true amalgamation of hard work and dedication. All the entrepreneurs must take a lesson from this company if they are planning to do something extraordinary.
