Technology plays an important role in disrupting the insurance industry in India and helps to create the distinction of consumer experience and service as well as to improve geographical access, especially to smaller towns and rural India. Using technology, RenewBuy Insurance simplifies and digitizes car, life and health insurance. Balachander Sekhar, CEO, RenewBuy tells Telangana Today the future insurance offerings and important trends in the sector.
Current user base
RenewBuy today has more than 50,000 point-of-sale partners (up from 25,000 during dieCovid) that cater to customers in 600 districts in India. The platform has served more than 2 million customers to date and sees 33,000 transactions every month. Today we are a $ 1,000 million business and next year we expect to raise $ 2,000 million. Today we work with 34 insurance companies, including 18 car insurance, 12 health insurance and four life insurance.
Covid impact
In the months of April and May 2020, renewals for insurance of commercial vehicles were delayed, postponed and canceled. Even private car owner insurance is affected. After June, there was recovery in renewals. On the life insurance front, there has been a slowdown due to the unwillingness to take long-term savings products. However, term and health insurance have risen significantly. RenewBuy has gained a market share among the traditional players. Covid also presented many challenges for underwriting in the sector.
Basis in Telangana
Today, there are at least 1,000 agents on the RenewBuy platform in the state and we plan to take it to 10,000 in the next three years. In FY21, we will do a 50 million business venture in Telugu states and expect to take that next fiscal amount to 150 million. We are in 50 districts in Telangana and AP which provide car, life and health insurance.
Motor insurance trend
There are about 3.5 million cars in India, of which three credits have insurance and 50 policies will expire. This represents approximately R 25,000,000,000,000. There are 17 crore two-wheelers in India, of which only four crore vehicles have insurance and 13 crore is still uninsured. RenewBuy wants to tackle this under penetration and go to smaller towns through a technology-led model.
EV insurance
In the next financial year, we will insure and dominate the insurance of electric vehicles (EVs). There is great potential in this space for at least the next ten years. We are talking to 3-4 top insurers to address the problems regarding battery insurance for two-wheelers. We also talk to EV manufacturers. We want to reduce the underwriting risk. We want to take a significant market share in four-wheel and two-wheel EV insurance. By the second half of 2021, we will be ready with these offers.
Travel insurance
We will soon be announcing a major partnership with a major travel agent to provide travel insurance through their agents. We bet a lot on travel insurance. There are 2-2.5 million Indians traveling overseas and not even 10 percent of this population is going to take out travel insurance. We build contact points for customers to learn the importance of travel insurance. Covid will only result in the travel insurance segment. Late 2021 and from 2022 we can see an increase in travel, and we are getting ready with suitable offers.
Small businesses
We address intrusion in this space with suitable solutions for small businesses. We are building a whole new package for small businesses and store keepers that covers insurance against fire, business continuity, theft, natural disaster and other risks. We want to offer cumbersome products.
Source: Telangana Today