Spending on well being in India is anticipated to increase manifold over the subsequent decade, a pattern that may doubtless be accelerated by covid-19. The insurance coverage sector will likely be one of many beneficiaries. Yashish Dahiya, co-founder and group CEO of the PolicyBazaar Group, mentioned in an interview for Mint’s Pivot or Perish Series that the group’s fundamental objective is to increase market share. Edited excerpts:
How has covid-19 affected your small business?
We have 17 enterprise models. Of these, some eight models are up by 25-40% for the reason that pandemic. Health and life insurance coverage are rising very quick and we’re gaining market share there. But fulfilment has grow to be more durable as a result of getting folks to do medicals has grow to be a little bit more durable within the lockdown. We are working with firms to get medicals executed with out bodily presence. So, we’re now in a position to do twice as many insurance policies than earlier.
Six models are seeing virtually zero revenues throughout this era. Credit playing cards, private loans should not occurring as a result of there’s no one on the market giving loans or bank cards. Travel insurance coverage is not occurring right now as a result of nobody is travelling. And then there are a few models which are 10-15% decrease.
So, general, our revenues are flat. But April is supposed to be a weak month of the 12 months, and but, we have now simply completed a worthwhile month.
How is covid affecting folks’s considering in direction of insurance coverage?
In India, there’s an enormous safety hole by way of insurance coverage protection. What this factor has executed is give folks time to assume and understand that medical insurance or life insurance coverage are vital to them.
There have been 4 traits in insurance coverage that have been occurring for the final 10 years, however they have been occurring at a really gradual price. One, folks have been realizing they want medical insurance and life insurance coverage, so consciousness was rising. And we performed a big function in that as a result of we have now spent upwards of ₹1,000 crore in promoting (since beginning out in 2008). Second, extra folks shopping for merchandise on their very own, which principally means they have been choosing on-line versus offline. Third, there was area of interest product creation, which implies creating higher merchandise primarily based on buyer knowledge. The fourth was making an attempt to do as a lot fulfilment remotely as attainable. So, doing e-KYC, e-medicals, video inspections, and so on. Covid-19 has sped up all these 4 traits.
How are you managing prices?
In the brief run, prices have gone up as a result of we had to procure many laptops and handheld gadgets. We had to get folks skilled. We are nonetheless paying hire for our workplaces, nonetheless paying for all our infrastructure. But taking a three-month view, our prices are just about in management. We haven’t minimize any salaries. In whichever models we have now been washed out, we are attempting to honour our staff’ loyalty as a lot as we will. But ultimately, we have now to maintain staff, shareholders and clients. So, we are attempting to apply a balanced strategy.
Costs would have been an enormous challenge if revenues had been severely impacted. But we have now just one, primary objective right now: To increase market share.