The insurance aggregator industry in India started with the introduction of PolicyBazaar in 2008 and as at 31st July 2020, there were 23 aggregators operating in the industry. Aggregators have proven to be an alternative distribution channel for insurance policies of motor, health, life, term life and other products; as they allow the customers to compare multiple policies from different insurance providers at the same time. Aggregators also act as a one-point customer representative for all their queries ranging from policy guidance to assisting in claim settlement.
While earning 8-15% commission on sale of different policies is the major revenue stream, aggregators are struggling to achieve their overall profitability with loss margins reaching over 100% for some players in the industry. As at March 2019, the industry was valued at $54.5 Mn, achieving a growth of 91% compared to FY’2018. PolicyBazaar is the market leader; followed by Coverfox Broking, Easypolicy and others.
Incumbents are leveraging their Omni-channel distribution (majorly through Agents in case of Online Brokers) to increase the traffic on website, leverage customer data and use it for cross-selling loans, investment in mutual funds and credit cards. For instance, PolicyBazaar through its sister company, PaisaBazaar is amplifying the cross-selling opportunities. Similarly, ETInsure is leveraging the established customer base of ETMoney (Loan/Investments platform).
To beat the trade off between customer acquisition cost and average revenue attributable from policy sale, aggregators are focussing on expanding their reach domestically and internationally. For instance, Easypolicy merged with Quickbima to increase its presence in specific districts of Haryana while PolicyBazaar has commenced its operations in UAE and plans to expand to more countries internationally.
While geographical expansion focuses on newer customer acquisition, aggregators must strive to increase the ticket size by creating value proposition for customer, post-sale of policy. Incumbents must strive to create a unified ecosystem within their platform offering location of hospitals, clinics, health wellness tracker, real-time tips for health/wellness improvement; rely on more content based marketing allowing customers to re-visit the platforms and replace employee/agent driven sale via chat-bots.
Industry has also witnessed certain M&A deals and participation of foreign investors in various funding rounds of the players. For instance, PolicyBazaar plans to raise another $150 Mn in Q3 2020 and is eyeing an IPO by 2021; acquisition of MyInsuranceClub by Express Group etc. Ken Research expects the industry size to rise to $672 Mn by FY’2024 owing to shift towards online mediums due to outbreak of COVID-19, increasing awareness among customers to have safety net and investment backed trends.
Time Period Captured in the Report:-
Historical Period – FY’2016 – FY’2019
Forecast Period – FY’2019 – FY’2024E
Companies Covered:-
Policy Bazaar
CoverFox
EasyPolicy
PolicyX
ET Insure
Compare Policy
Key Topics Covered in the Report:-
Snapshot on Insurance Industry in India
Distribution of Insurance in India
Overview of Insurance Web Aggregators
Operating Business Models (Online broking V/s Online Aggregators)
Regulations by IRDA for Web Aggregators
India Web Insurance Aggregators Market Size
India Web Insurance Aggregators Market Segmentation
Competitive Landscape of Major Insurance Web Aggregators
Cross Comparison of Major Players on Key Performance and Operational Indicators
Key Trends and Developments
India Web Insurance Aggregators Future Market Size
India Web Insurance Aggregators Future Market Segmentation
Total Addressable Market for the Players, FY’2019-FY’2024E
Analyst Recommendations for New and Incumbent Players
Interview with Mahavir Chopra, Chief Business Officer at Coverfox Insurance
Interview with Naval Goel, CEO at PolicyX, India
For More Information on the research report, refer to below link:-
India Web Insurance Aggregator Market
Related Reports:-
India Online Insurance Outlook to 2019 – Driven by Internet Growth and Web Aggregators Industry
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
ankur@kenresearch.com
+91-9015378249
