PolicyBazaar - Story, Founder, Business Model, Funding, Team, News

PolicyBazaar Highlights

Startup Name PolicyBazaar
Headquarter Gurugram
Founder Yashish Dahiya, Alok Bansal & Avaneesh Nirjar
Sector Fintech
Founded 2008

PolicyBazaar - Introduction
PolicyBazaar - Industry Details
PolicyBazaar - Founder
PolicyBazaar - The Idea and Starting Up
PolicyBazaar - Name, Tagline and Logo
PolicyBazaar - Product
PolicyBazaar - Business Model
PolicyBazaar - Revenue Model
PolicyBazaar - Funding
PolicyBazaar - Challenges
PolicyBazaar - Competitors
PolicyBazaar - Achievements
PolicyBazaar - Awards & Recognition
PolicyBazaar - Future Plans

PolicyBazaar - Introduction

It’s always good to be insured against the contingencies and emergencies of life. The whole concept of insurance policy is to financially equip us to deal with loss. Insurance comes with many benefits like managing risk and managing cash flow uncertainty. Insurance is also a good investment tool. However, the agents who are into selling insurance most of the times fail to provide insurance as per needs of the customer. They knowingly or unknowingly hide crucial policy related information from the customers. In many cases agents sell policies focusing on their personal benefit and commission rather than customer needs. Thanks to the opacity of the insurance industry, a big chunk of the saver’s funds goes into fattening the agent’s wallet. Due to these factors customers hesitate to buy insurance from agents.

To solve this problem, Yashish Dahiya founded Policy Bazaar in 2008. Policy Bazaar is a platform that helps consumers analyze, compare and buy insurance based on price, quality and other key features

PolicyBazaar - Industry Details

According to NASSCOM, Fintech market in India is likely to touch US$ 2.4 billion by 2020.
Again the insurance industry in India is likely to touch US$280 billion mark by 2020. However, a huge chunk of Indian population does not have insurance. Overall insurance penetration i.e premium as percentage of GDP was only 3.69% in 2017. As such, there is still a huge under-served market for insurance in India.

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PolicyBazaar - Founder

Yashish Dahiya, Alok Bansal and Avaneesh  Nirjar founded PolicyBaazar in 2008.

Yashish holds a Bachelor’s Degree in Engineering from IIT Delhi(1994), a Post Graduate Diploma in Management from IIM Ahmedabad(1996), and an MBA from INSEAD(2001). Just after that he joined Bain&Co as a consultant. Later he became the managing director UK at ebookers.com. In 2005, he founded First Europa, a Global Online Insurance Broker where he was responsible for leading the global expansion and managing the business of the company across 9 geographical locations. He is also a national-level swimmer and triathlete himself. He is an investor and founder of paisabazaar.com, which provides the market for fixed deposits and loans at your fingertips.

Alok is an alumni of IIM Kolkata. Prior to PolicyBaazar, he worked as finance director at First Europa, senior Manager - Corp Strategy at Mahindra & Mahindra and business manager at iGate Global Solutions.

Avaneesh is an Alumni of IIT Kharagpur. He also did MBA from Birla Institute of Technology. Prior to PolicyBaazar, he worked with companies like, Marico Industries, AT&T India, GE Capital International Services, Heroites, Cendant ISO and First Europa.

PolicyBazaar - The Idea and Starting Up

The idea for Policybazaar has its seed in an incident Yashish noticed.

I was going through some of the financials with my father and few things looked dubious. On deeper inspection, my father had been cheated of a few lakh rupees by insurance agents. The transactions looked clean on the face of it but the reality emerged when I looked in closely. This got me thinking about how people are getting duped hence came into being Policybazaar. We started PolicyBaazar with just 14 hardworking individuals.

As the platform is a market for Policy, so it is named PolicyBazaar.

Company's punch line is, “Insurance Compare Kiya” ?  The unique comparative system boosts credibility by empowering customers with comparative and accurate information.

Policy Bazaar Logo

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PolicyBazaar - Product

PoicyBazaar is the marketplace for all insurance needs. It provides every thing from, life insurance, health insurance, motor insurance and other insurance like travel insurance and group insurance etc. The company offers more than 250 insurance plans and around 50 insurance brands on its platform. The platform is designed in a way that the visitors can easily compare the insurance plans and buy plans as per personal insurance needs.

PolicyBazaar is constantly adding new features and technology to make customer experience smoother. The company introduced 'my account' feature some times back. Customers can visit 'My Account' and can easily download a policy, raise a ticket, ask for clarification and upgrade policies. The company introduced self inspection video feature for revival of lapsed motor insurance.

PolicyBazaar also adopted Amazon Polly and developed in-house  AI chatbot PBee to improve customer satisfaction.

PolicyBazaar - Business Model

PolicyBazaar.com is an aggregator website, which helps customers research and compare the features of different insurance policies within a category, hence enabling them to make an informed choice. The company has tied up with insurance brokers which help them procure information such as price, benefit, insurance cover etc directly from the insurers for the customer to compare. Based on the information provided, the customer then chooses the best option. It doesn't charge customers anything for this service.

PolicyBazaar - Revenue Model

Major revenue comes from lead generation for the insurers, advertising and policy sales. Till 2011, 85% of our revenue came from lead generation and advertising and the rest 15% came from policy sales. Now, 85% comes from e-commerce or policy sales.

PolicyBazaar - Funding

Poliybazaar has raised a total funding of more than $346 Million in 7 rounds from 12 investors. Recently in May 2018, PolicyBazaar raised $ 200 million from Softbank and Info Edge. The table below shows PolicyBaazar funding details till date.

Date Stage Amount Investor
May 2011 Venture Round Undisclosed Intel Capital
March 2013 Series A $4.6 Million Intel Capital and Inventus Capital Partners
April 2013 Series B $5 Million Inventus Capital Partners, Info Edge, and Intel Capital.
May 2014 Series C $20 Million Tiger Global Management
April 2015 Series D $ 40 Million PremjiInvest, Tiger Global Management, Ribbit Capital, Steadview Capital, ABG Capital.
October 2017 Series E $77 Million Temasek, Tiger Global Management,Premji Invest,Info Edge(India) Ltd and other undisclosed investors
May 2018 Series F $200 Million Softbank and InfoEdge(India)

PolicyBazaar - Challenges

According to PolicyBaazar Marketing Head Sai Narayan, customer inertia is one of the biggest challenges faced by PolicyBaazar. Many people are still habituated to buy insurance from insurance agents. It takes effort to convince this category of people to buy insurance online.

According to Narayan, the other challenge is that in India most people view insurance just as a tax saving tool. They fail to see the larger picture that insurance means much more than tax saving. As such, most insurance sales happen during January- March.

PolicyBazaar - Competitors

BankBazaar, CoverFox and EasyPolicy are some major competitors of PolicyBaazar.

PolicyBazaar - Achievements

Following are some major achievements of PolicyBaazar-

  • PolicyBaazar is known as the largest insurance aggregator of India.
  • PolicyBaazar.com recives 100 million visitors annually.
  • Sale of nearly 3,00,000 transactions a month.
  • Over 15000 policies sold in a moth.
  • In the fiscal year 2017-2018, the company scored a growth of 225% in its revenues.
  • PolicyBaazar is the second Fintech Company in India to enter the unicorn club after Paytm.
  • The company occupies 50%market share in online insurance space.
  • It claims to hold 25% of India's life insurance cover and around 7% of India's retail health insurance business.

PolicyBazaar - Awards & Recognition

PolicyBaazar has received many awards and recognition for its business model, customer centricity and marketing efforts. It has won the following awards-

  • IAMAI Indian Digital Awards for best financial website 2013-2014
  • Frost and Sullivan Customer Value Leadership Award - 2014
  • Award for Best Mobile App Consumer Finance in 2015  by GSF Mobile Appies
  • Exchange4media Golden Mikes Award 2015
  • DMAi Asia ECHO Awards 2015
  • CMO Asia Awards 2015
  • BAM Award 2015
  • Iconic IDC Insight Awards 2015

PolicyBazaar - Future Plans

Major future plans of PolicyBazaar are-

  • Underwriting premium worth Rs 10,000 crore by 2020.
  • Expanding its unique customer base to 1 crore by 2020.
  • Increasing revenue to Rs 1500 crore by 2020.
  • Innovating new products and technology for better customer satisfaction.
  • Expanding outside India
Website - PolicyBazaar

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