How this Indian insurance startup aspires to reach the masses with low-cost services

Insurtech startup InsuranceDekho is an online platform that allows its users to compare insurance policies such as car, health, bike and others from insurance companies and allows them to purchase the policy from assurance. Launched in 2016, the company has over 14,000 customers and over 50,000 partners in over 1,150 cities. He plans to raise up to $100 million in the coming months.

Ankit Agarwal, CEO and co-founder of InsuranceDekho in an interview with mint spoke about how insurance is reaching the masses amid the covid pandemic, company fundraising plans, focus on tech end products, future growth ambitions, and more.

Does the insurance go to the masses, especially the young?

Yes, the insurance is aimed at the masses, especially young people in Tier 2 and beyond towns. Increasing accessibility to insurance solutions on digital platforms is democratizing the availability of insurance for young people and people across the country.

How has investing in the insurance industry changed over the past 2 years amid the pandemic?

Over the past two years, the product mix has evolved in the insurance segment. The pandemic has heightened awareness of health and life insurance and it’s about to last a long time. Both underlying markets are growing rapidly and we expect that within the next 3-4 years, health and life insurance will represent approximately 45-50% of our business.

What do you think is your USP in this segment?

There are approximately over 400 insurance brokers in the country. But we are one of the fastest growing players in this segment and we are a strong technology-driven player. Our goal is to strengthen distribution and ensure a smooth journey for customers and partners, which differentiates us in this segment. We provide state-of-the-art technology solutions to ensure seamless distribution capabilities to our partners and competitive pricing and support to our direct customers in this segment.

Tell us about your subscriber demographics. Which cities ? What percentage?

We are present throughout the country, with a stronghold at the northern and western ends of the country. And this region contributes about 55-60% of our book. We are focused on building deeper market penetration in the eastern and southern parts of India, which currently account for approximately 45% of our overall business. However, we need to go further and at Insurance Dekho we aspire to have an InsuranceDekho advisor in every village in India, that is nearly 6 lakhs.

Capital, fundraising projects? How do you intend to use it? Also, any IPO plans?

Yes, we plan to raise external funds in the market, and Haitong Investment Bank is our investment banker for this purpose. As we have built this business sparingly with an economy-focused unit now, we are at the perfect stage to raise capital externally for the next phase of growth for the organization.

We are currently aiming to increase our distribution channels, increase market penetration across the country, and create world-class, technology-driven products with greater variety.

How do you intend to use technology, innovation to disrupt the industry and compete with your rivals, whether present or future?

Cutting-edge products are central to everything we do at Insurance Dekho. We plan to invest heavily in cutting-edge products and ensure that we are building a world-class product-focused organization. We are also focused on upgrading our platform through the integration of technologies based on artificial intelligence (AI) and machine learning (ML) to ensure that the entire sales journey for partners on the other side is intuitive.

Do you plan to introduce new products or branch out into other segments?

We are currently working with our insurance partners to launch new products. We focus on small products that cover individuals at a lower cost. Simultaneously, we are also enhancing our platform to provide seamless buying and selling experiences for insurance carriers and agent partners.

To subscribe to Mint Bulletins

* Enter a valid email address

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our app now!!

Comments are closed.