Notes from FY22 AR:
Business Model -
- Enable consumers to research and compare a wide range of insurance and credit products offered by our partners, thereby increasing choice and transparency. Our end-to-end online service reduces purchase time by providing all pre-purchase research tools on one platform. Once consumers give their profile details, we provide them with multiple options with related costs so consumers can make an informed purchase conveniently. We offer assistance through tele/ video/ chat/ in-person engagement. Our wholesome servicing throughout the consumer lifecycle comprises of facilitating renewals, endorsements, grievance redressal, and claims processing.
- Asset-light capital approach- Does not underwrite any insurance or own any credit risk or do not own any offices.
- Our leading brands -Policybazaar & Paisabazaar.
- Two reportable segments:
- Insurance Brokerage Services under Policybazaar (Online and Offline). 51 insurer partners, or 89.5% of all licenced insurers in India, are marketing their products on Policybazaar. Obtained direct (life and general) insurance broker licence on 10th June 2021 to deliver in-person Consumer engagement and services in local languages. Established 45 corporate offices and retail stores in 25 cities as of March 31, 2022, and endeavours to grow to 50+ cities in India by the end of the current FY. By utilising their direct (life and general) insurance broker licence, PolicyBazaar will also be able to provide on-the-ground claims support to its existing and future consumers. These actual retail shops are currently planned to be tiny offices in each city, close to its insurer partners’ headquarters.
- Other Services, which includes Paisabazaar’s online marketing, consulting, and support services primarily to the financial services industry. Paisabazaar, started in 2014, is a leading marketplace platform that partners with banks and NBFCs across the ecosystem and expect it to break-even by the last quarter of 2023. It has also started making trail revenue
Why our service is preferred?
- Industry’s leading “Pull” driven insurance platform where consumers come of their own accord to buy insurance. Consumers who conduct their own research and buy, have higher disclosure levels and lower churn. This leads to a better quality of business (lower claim rates, higher renewal rates) for our insurance partners. Our consumers in turn get a better level of service and in many cases, higher claims paid ratios from insurers.
- Higher intent consumers Policybazaar advisors have significantly higher productivity and earnings opportunities as compared to the rest of the industry.
- Provide our Insurer and Lending Partners with access to the large consumer bases of both Policybazaar and Paisabazaar to enhance their sales. As per Frost & Sullivan, the consumer acquisition cost for our Insurer and Lending Partners is one of the lowest through our platforms.
- Over half of our country’s consumers conduct their research on Policybazaar before purchasing health or life (term) insurance.