"Customers don't need a push to buy insurance today"

The ‘Tellers’ and not ‘Sellers’, as the website claims, Policybazaar.com is India’s online insurance comparison portal, specialising in helping consumers compare and make the right choice pertaining to their insurance needs.

During the Indian Retail and eRetail Congress and Awards 2015, Retailer Media caught up with Policybazaar’s chief financial officer, Alok Bansal, to talk about the online insurance comparison websites and their future.

How is PolicyBazaar.com different from other insurance portals?

One of the biggest differences that we have brought to the table is that our prime focus is on customers only. Whether it be the product, the journey around those products and the procedure around those products, assistance while insurance or claims, whatsoever it is, everything is available on the platform itself.

Further, we are trying to push the boundaries of the entire ecosystem on this particular aspect as companies these days are more and more digital and the customer is God.

Where do you see the online insurance industry 5-7 years down the line?

I think this industry will grow quite significantly because the basic mindset which exists in the market is that a customer will never buy insurance on their own and they will need a push. There are lots and lots of people who come to us every month to purchase policies.

 So, if the customers are available, the entire ecosystem starts moving towards them and product creation overall. Once that happens, companies are able to create micro-segmented products.

How is the market different in tier II or III cities in comparison to metropolitan cities?

I don’t think they are different at all. The basic customer needs in terms of production are very similar. The only difference is the scope of what covers they want. For instance, a person living in Delhi will ask for a health cover of Rs. 5 lakh against someone living in a small city, who will ask for a health cover of Rs. 2 lakh, but everyone will need health cover for sure.

What is your take on the “mobile-only” strategy adopted by many eCommerce players?

This is something that is pushing a lot of customers towards the online channels because convenience associated with mobiles is definitely there. In our case as well, we have seen that a lot of customers want to come to the website using their mobile phones to see what all offers/products are available.

The only constraint for models like ours is involvement of multiple steps. And since mobile is not conducive for multiple steps sort of process, it gets a little tricky. Also, there is a huge competition component to it, which is managed by supplier’s end.

So, if supplier’s readiness is not there, there is no point moving towards mobile. But yes, the customer interest in mCommerce is definitely there and currently we get 30 per cent of our traffic by way of mobiles.

Can you put some light on the investment front of PolicyBazaar.com?

We started in June, 2008 and till date we have raised five rounds of funding. Some of our prominent investors are InfoEdge, Intel Capital, Invental Capital Partners, Tiger Global and PMG Investments. PolicyBazaar is a well-funded company, investors see a lot of value out of it.