Insurance app pushes policies, the smart way

“Our entire model was scoffed at first as we positioned ourselves as pure play digital. Those who came prior to us thought advertising will bring in millions of customers. But, 19 companies went bust. Leading competitors have burnt hundreds of crores and even new age start-ups which evolved post the euphoria shut shop as they lacked true industry experience,” Balachander Sekhar, CEO-Founder says as he takes us through the milestones. 

“My RenewBuy agent (part of a 7,000-member agency network) comes to your home, evaluates your bike or car, inputs the vehicle details and even if it is lapsed (if required will take photo through the app), there is no worry. In a jiffy, the agent pulls out seven quotes. 

Presto, the link is established and the payment of the premium can be done (we have had instances of people paying Rs 4.5 to Rs 5 lakh) and on the spot you get the policy,” says Sekhar, who cites the current insurance renewal process, wherein the work involves taking the vehicle to the insurance firm, underwriting it if need be, accompanying the agent for verification. It does not stop there. There are lengthy forms and crossed cheques to be cleared before the policy is yours. 

“We are a clearly ahead at number two position from the market leader, who has the strength of 10 years of additional advantage and lot more capital that has been deployed. Thanks to our model, we have built the most capital-efficient venture. We are building a culture around digital online business. Our goal is to emerge as a big player with a profitable business, where the growth will happen through a digital non-linear way,” says the professional-turned entrepreneur, who was here to launch operations on Wednesday. 

Unlike competition, RenewBuy claims to have invested only Rs 15 cr to achieve the current position. 

“This year, we will do Rs 8.5 cr premium month-on-month. We have become number two only by operating in two markets – Delhi, including NCR and Punjab. Mumbai, Bengaluru have opened recently,” says Sekhar, whose company is fresh from an equity infusion of Rs 60 cr from Amicus Capital.  

He adds, “We will deploy the funds to enter 30 to 40 cities and penetrate Tier I, II, III cities in the next 18 – 36 months. This will be our way of establishing a dominant leadership position in the motor insurance space and then, subsequently foray into health and other allied businesses.” 

In TN – a market with 15 lakh cars and 80 lakh two-wheelers, growing 20 per cent annually, it expects to garner annual premium of Rs 50 cr. In the first phase, it has plans to enter locations such as Coimbatore, Salem and Madurai so that its aim of serving the under-penetrated markets and correcting the mis-selling experiences by using a technology-robust platform.