Start-ups – Policybazaar.com-Selling insurance policies-Rs 50 Crore Revenue in 5 years
Policybazaar.com is a webportal which works as web aggregator, technology and marketing company and sells insurance policies. In 2008 when this company was started, not many insurance companies have come forward to go through policybazaar.com. In the last 5 years it gained good reputation and now policybazaar.com sells thousands of policies every month. The credit goes to promoter Yashish Dahiya.
How Policybaazar.com was started?
Dahiya’s father was cheated by insurance agents. Every 3 years, his insurance agent used to approach his father and ask him to take new insurance policies which are insurance-cum-investment products. Such products charge huge charges in initial period of policy term. Due to this an individuals would to get lesser than what they invested. Insurance agents never sold health insurance, health insurance and motor insurance which are the main requirements for individuals. Instead they used to sell insurance-cum-investment products to get good commissions for 1 to 3 years timeframe.
How Policybazaar is helping ?
Agents used to fill forms and mis-sell wrong policies to individuals.
Policybazaar would provide information about all major insurance products and compare such products for an individual based on his age and risk coverage requirement. In such case, an individual would know the risks involved and premiums to be paid. Currently 30% of policies sold by Policybazaar.com are term insurance, health insurance and motor insurance products.
How the company is doing in terms of financials?
Policybazaar.com was started in 2008. It made revenue of Rs 3 Lakhs in first year. In 2012-13, it made revenue of Rs 50 Crores. In 2013-14, it aims to do Rs 75 Crores turnover and Rs 100 Crores turnover by 2014-15.
It has started its operations with capital of Rs 80 Lakhs in 2008. In 2008, Info Edge has invested Rs 20 Crores. In 2011, Intel Cap has invested Rs 30 Crores in this company. Such funding has helped Policybazaar.com to grow their business.
What are the challenges faced?
Due to slowdown, it diversified its business model to credit cards and loans also. This accounts to 8% of the total revenues. Total visitors to the web portal were 4 Mn per month which got reduced to 1 Mn per month now. This is due to the fact that they closed traffic from indirect channels as they were not adding value to their business. They were just viewers with no conversions. With such strategy, they were able to increase the conversion rate.
Currently 85% of business comes from e-commerce and policy selling. Indians aren’t comfortable in buying products online. This is the major challenge which still exists.
Policybazaar.com is helping individuals in taking right insurance policies. Due to this several individuals are believing Policybazaar.com.
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Team – Allbusinessideas.com