The publication titled ‘India Web Insurance Aggregator Industry Outlook to 2024’ decodes the shape of Insurance industry in India with a special focus placed on web aggregator mode of distribution and its fast pace growth in the past few years. In addition to the different business models followed by aggregator firms, the report also covers the current landscape of aggregator industry basis revenue, premium collection, penetration rate with respect to overall insurance industry. It also includes the extensive competition benchmarking of industry by cross-comparing peer companies across operational, segment wise premium collection, profitability and financial parameters, includes company profiles of top players and defines customer acquisition cost of top players and at industry level. The role of changing regulations by IRDA, prevailing trends in industry and capturing issues faced by current players has also been showcased to evaluate the future outlook of industry.
Analysts at Ken Research (Online Market Research) have estimated the total addressable market for different insurance products including Motor, Health and Term Life and have suggested that profitability should be a key concern for aggregator firms and investors while expanding the business for acquiring new customers and serving with enhanced insurance products. The report concludes with full interviews conducted with Mr. Mahavir Chopra, Chief Business Officer at Coverfox and Mr. Naval Goel, Chief Executive Officer at PolicyX.
Insurance Industry in India and Role of Aggregators
Insurance GWP collection of India reached USD 97.4 Billion in FY’2019, taking the insurance penetration to 3.7%, lagging behind most of the emerging Asian Economies wit h around 5.6% of penetration. The growth is majorly led by non-life insurance products including Motor and Health owing to initiatives led by government in terms of amending Motor Vehicles Act, 2019 and rising awareness among population for covering the unforeseen risks. Introduction of Web Aggregator Platforms have fostered the need for comparison of different products at a single place, helping customers in making an informed choice. During FY’2019, aggregator firms contributed less than 1% to total GWP collection in India, depicting high growth over past few years yet potential for more to meet European standards.
Different Business Strategies of Players to Up-Ante their Game
While PolicyBazaar continues to be the pioneer in the industry, Coverfox Broking Limited has positioned itself to being an Omni-channel provider of service through their ‘more than 50,000 insurance agents registered on ‘Coverdrive’ segment. In a similar fashion, Bootstrapped PolicyX continues to strengthen its cost leadership by having lowest customer acquisition cost among industry peers. Targeting similar audience, aggregators generally compete on Platform Service, Telemarketing Assistance, Product Portfolio and Partnership with Insurance Providers.
Focus on Rapidly Evolving Customer Behavior
The demand of customers is no longer limited to traditional products of Motor, Health and Term Life and is gradually evolving to risks experienced in domains including cyber, intellectual property, renters, travel, home and contents, business, pet and others. Aggregators need to work hard with Insurance providers to underwrite such risks and simultaneously making efforts to spread awareness among the Tier II and Tier III cities of India. Aggregator firms could also emphasize upon rewarding customers upon fulfillment of precautionary measures specified for each insurance product.