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Tag: Insurance Company

  • Acko Business Model Explained: How the Digital Insurer Makes Money

    Well, life is full of unpredictable situations, and technology on the other hand keeps us at ease. With digitalization booming all across the world, now everything is possible with a click. Earlier, social media platforms were only quite popular forms of digitalization.

    But now, every facility availed by a common man has also turned digital which is why it is now accessible to everyone. One of the time-saving and lengthy processes of insurance has also been turned digital and it has become possible only through Acko General Insurance. Here, we will look into the business model of Acko that is helping the brand to reach heights:

    About Acko
    Target Audience of Acko
    Products and Services of Acko
    Business Model of Acko
    What Is Unique About the Business Model of Acko?
    How Does Acko Make Money | Acko Revenue Model
    The Cost Structure of Acko

    About Acko

    Acko is a general insurance company founded in 2016 by Varun Dua. It has become one of India’s tremendously booming digital insurance policy providers with all of its services offered through digital platforms. It has got its license from the Insurance Regulatory and Development Authority of India (IRDAI).

    The company has been backed by investors like Amazon, Elevation Capital, RPS Ventures, Accel Partners, and others.

    Tie-Ups With Major Players

    The company also has tie-ups with different renowned players like Ola, OYO, Zomato, RedBus, and Urban Company. Acko General Insurance has partnered with Ola Cabs and launched an in-trip insurance program in more than 110 cities in India. Amazon Pay also partnered with Acko in July 2020 to provide an auto insurance policy to its customers.

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    Target Audience of Acko

    The retail consumers who are pretty techno-friendly are the ones who are primarily focused on Acko.

    1. Individual Consumers: Acko provides digital insurance products including car, bike, gadget, and health insurance policies. Their target market seeks convenience, price-sensitivity, and transparency.
    2. Corporate Customers: Acko collaborates with e-commerce giants such as Amazon, ride-hailing service providers like Ola, food delivery platforms like Zomato, and others, to offer bespoke insurance solutions to their customers and employees.
    3. E-commerce and Online Service Providers: Acko has partnered with e-commerce platforms and online service providers to offer insurance products as value-added services to their customers. This customer segment is looking for innovative insurance solutions to enhance their experience.

    Products and Services of Acko

    With multiple services offered digitally, the services vary in size and quality, and they are:

    Acko Car Insurance

    • Comprehensive Car Insurance
    • Third-Party Car Insurance
    • Commercial Car Insurance

    Acko Bike Insurance

    • Comprehensive Bike Insurance
    • Third-Party bike Insurance

    Acko Health insurance

    • Health Insurance
    • Aarogya Sanjeevani
    • Group Medical Cover

    Acko Electronics Insurance

    • Mobile Protection
    • Appliance Protection

    Business Model of Acko

    Well, the company goes with a very witty approach of business to consumer (B2C). The business model of Acko clearly states that the brand reaches the customers directly and sometimes also through brand partnerships. It has a good record of insuring more than 20,000 cars and provides car insurance to customers in less time, with no paperwork in the purchase, claim, or renewal.

    It means no stress and no hassle for insurance-related work. Acko also provides General insurance, mobile insurance, and bike insurance. Apart from that, the company also works with third parties to offer micro-insurance for the services of other brands.

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    What Is Unique About the Business Model of Acko?

    Acko is not just making you stress-free along with offering better services but also is providing you comfort with micro-insurance services.

    1. Affordability: Acko’s approach, which is driven by technology, helps them reduce operational costs. This, in turn, enables them to offer insurance products at competitive prices.
    2. Convenience: Acko simplifies insurance by providing an online platform for purchasing policies, managing claims, and accessing customer support via their website or mobile app.
    3. Customization: Acko uses data to create personalized insurance products and pricing based on individual risk profiles, achieving a more efficient and fair pricing model.
    4. Digital: Well gone are the traditional days because now you can buy insurance digitally anywhere at any point in time, and that too without any paperwork in less time‌‌ Car insurance that is too digital is like an added advantage for the consumers.‌‌
    5. Innovation: The products are innovative and the technology added to them has a unique offering such as trip insurance, electronic cover, and hotel-stay insurance with the association of digital partners.‌‌
    6. Customer-friendly: The brand focuses on the convenience of the customers and offers products that are customer-friendly.

    Just imagine your vehicle got damaged, and you get to avail yourself of Acko’s services. You call Acko support, and your damaged vehicle will be picked up within an hour. The vehicle will be repaired in 3 days, or they will also provide you with cab services. Isn’t it amazing? No other brands offer these facilities and an easy car insurance process. So, the customer stays satisfied as they live with ease and do not worry about problems.

    Acko Business Model Canvas

    Acko is a fully digital insurance company that operates on a direct-to-consumer (B2C) model, eliminating the need for intermediaries. Its business model is driven by technology, enabling fast, affordable, and hassle-free insurance services. Here’s a breakdown of Acko’s business model using the Business Model Canvas:

    Acko Business Model Canvas
    Acko Business Model Canvas

    1. Key Partners

    • Digital partners for micro-insurance (travel, electronics, hotels)
    • Car service providers and garages
    • Third-party service providers
    • Brand partnerships for bundled insurance offerings

    2. Key Activities

    • Building and maintaining digital insurance platform
    • Issuing and managing insurance policies
    • Fast claim processing and support services
    • Data analysis for product personalization
    • Marketing and customer acquisition

    3. Value Propositions

    • 100% digital, paperless insurance process
    • Quick car insurance with pickup and repair service
    • Affordable pricing through reduced operational costs
    • Personalized insurance using customer data
    • Innovative micro-insurance products (trip, phone, hotel stay)
    • No middlemen — direct-to-consumer convenience

    4. Customer Relationships

    • 24/7 digital customer support
    • Easy online policy management and claim tracking
    • Fast service and customer-friendly processes
    • High customer satisfaction and trust ratings

    5. Customer Segments

    • Individual car, bike, and mobile owners
    • Travelers needing trip or hotel insurance
    • Corporate clients and their employees
    • E-commerce consumers needing quick cover

    6. Key Resources

    • Technology platform and digital tools
    • Skilled workforce (tech, insurance, customer support)
    • Customer data and analytics systems
    • Licenses and regulatory approvals
    • Brand reputation and trust

    7. Channels

    • Acko website and mobile app
    • Partner platforms and apps
    • Social media and digital ads
    • Direct communication (no agents involved)

    8. Cost Structure

    • Technology development and maintenance
    • Marketing and promotions
    • Employee salaries and team costs
    • Compliance and licensing expenses

    9. Revenue Streams

    • Insurance policy premiums (main source)
    • Commissions from brand partners
    • Data monetization (ads, analytics, insights)

    Acko Advertisement

    How Does Acko Make Money | Acko Revenue Model

    Acko also has several customer-friendly schemes, which is the way the company is making money. As a digital insurance platform, it provides services that are cost-effective and of better quality than other brands. Also, when it comes to the direct-to-consumer approach, there happen to be no middlemen, which eventually makes a way to make extra profit.

    The company has also gained the trust of its customers and has received high ratings from them. The customer support facility provided by Acko has also assisted in getting more appreciation from the customers and ratings too, eventually paving the way for more money acquisition and revenue. The revenue streams of Acko are:

    1. Premiums: Acko generates its primary revenue from selling insurance policies to individual and corporate customers.
    2. Commissions: Acko earns commissions from partner companies for selling insurance products as value-added services to their customers or employees.
    3. Data monetization: Acko’s data-driven approach allows for the collection of valuable customer data, which can be used for targeted marketing, advertising, and analytics services.
    Acko Insurance Revenue
    Acko Insurance Annual Revenue

    Acko’s operating revenue has shown consistent growth, rising from INR 1,334 crore in FY22 to INR 2,106 crore in FY24. However, its total expenses have also increased, from ₹1,835 crore in FY22 to INR 2,830 crore in FY24. As a result, the company has continued to report losses, INR 482 crore in FY22, INR 738.5 crore in FY23, and INR 670 crore in FY24. Despite narrowing its losses in FY24, Acko remains in the red while focusing on expansion and digital innovation.

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    The Cost Structure of Acko

    In the dynamic landscape of the insurance industry, Acko emerges as a formidable contender, driven by a multifaceted approach to business operations. The cost structure of Aco is:

    1. A significant portion of Acko’s costs is dedicated to developing, maintaining, and enhancing its technology infrastructure.
    2. Acko invests in marketing and promotional activities to acquire new customers and build brand awareness.
    3. Acko’s expenses include salaries and benefits for its team of professionals, such as engineers, data scientists, insurance experts, and customer support staff.
    4. Acko incurs costs associated with regulatory compliance and maintaining necessary licenses to operate in the insurance industry.

    Conclusion

    Acko, because of its services and perfect business model, is rising high in the insurance industry. The company has presented a record of providing insurance policies to 62+ million customers and has also issued 800 million insurance policies. The innovative products and the unique technology-based offerings are making Acko stand out from the crowd of insurance service providers.

    FAQs

    Who is Acko owner?

    Varun Dua is the founder of Acko.

    How does Acko make money?

    Acko makes money through its various insurance schemes.

    What is Acko insurance business model?

    Acko operates as a digital insurance provider, offering policies directly to consumers through its online platform. Leveraging technology and data-driven insights, it aims to streamline the insurance process, providing convenient and affordable coverage options.

    Is Acko profitable?

    No, Acko is not currently profitable. Despite increasing revenue, the company has reported significant losses in recent years.

    What are the various marketing strategy of acko general insurance?

    Acko General Insurance employs digital marketing tactics such as targeted online advertising and social media campaigns to reach its audience effectively. Additionally, it utilizes partnerships with digital platforms and influencers to expand its brand presence and customer acquisition efforts.

  • Rahul Agarwal, Founder & CEO of Ideal Insurance, on Industry Growth, Technology, and Strategic Expansion

    In this engaging interaction with Mr. Rahul Agarwal, Founder and CEO of Ideal Insurance, he shares his journey of building a successful insurance business. He discusses the key milestones that shaped the company’s success, the wide range of policies offered, and highlights how the technology helps enhance their business operations. Agarwal also shares his insights on the data integration challenges, the company’s growth strategies, and the role of investment in the company’s expansion.

    StartupTalky: What inspired you to start Ideal Insurance, and what were some key milestones?

    Mr. Agarwal: The journey to starting Ideal Insurance began during my college years. In the early 2000s, I aspired to study abroad but found myself lacking the necessary information and work experience to apply. In my third year, I sought a job but was unsuccessful. However, 2001 was a pivotal year when the insurance industry in India opened to private and foreign companies. I decided to walk into Max New York Life, thinking that a role with an American insurance company would enhance my CV. Although they didn’t offer me a job since I was still a student, they made me an insurance agent.

    I excelled quickly and within four months became a member of the Million Dollar Round Table (MDRT). As fate would have it, Max New York Life sent all MDRT members to the U.S. for an annual conference. This trip opened my eyes to the global insurance industry. After completing my MBA at S.P. Jain, I knew the insurance industry in India had significant growth potential. Coming from a business family, I was inspired to build a successful enterprise, much like Dhirubhai Ambani. With this vision, I founded Ideal Insurance in September 2005.

    StartupTalky: What types of insurance policies and services does Ideal Insurance offer?

    Mr. Agarwal: Insurance broking in India began in 2003, before which agents dominated the industry. At Ideal Insurance, we established a consultancy-driven insurance firm that collaborates with any insurance company in India and abroad. We offer every type of policy available across all insurance companies, ensuring our clients receive the best products on the market. Ideal Insurance leads in key areas such as auto and fleet insurance and health insurance. We also provide personalized policies, along with free risk assessments and audits for businesses.

    StartupTalky: How do you think the insurance industry will change in the next decade?

    Mr. Agarwal: The insurance industry is poised for phenomenal growth over the next decade. Currently, the size of the market is $220 billion, the Indian insurance market has the potential to reach $1 trillion within the next five years. When compared to the $2 trillion U.S. insurance market, there’s immense room for expansion. With dedicated support from the Insurance Regulatory and Development Authority of India (IRDAI), increasing awareness, and overall market growth, the next 10 years are going to be transformative for the industry.

    StartupTalky: What strategies or technologies have you used to make the insurance process easier for clients?

    Mr. Agarwal: We have embraced technology and in-house automation to enhance our services significantly. For instance, we have launched 121policy.com to simplify the management of our partner businesses, allowing partners to interact and obtain quotations easily. Additionally, we have developed our own CRM tool for our employees to streamline operations, and we are working on claims management software to improve the client experience further.

    One of our key innovations is the development of a policy wallet. Many clients struggle to manage multiple policies from different agents and companies, so we are creating a common repository where they can store all their policies. This tool will provide regular reminders and make it easier for clients to manage their policies in one place. We are continuously working on more initiatives like these to make the insurance process more seamless and strengthen our distribution channels.

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    StartupTalky: When choosing an insurance policy, what should people look for to make sure it fits their needs?

    Mr. Agarwal: When selecting an insurance policy, the primary focus should be on how well it meets your specific needs. While price is important, it should be secondary to factors like the policy’s coverage, the claims process, and the financial strength of the insurance company. Additionally, it’s crucial to consider the role of the intermediary or broker you choose, as they play a significant part in ensuring you get the right coverage and support.

    StartupTalky: How do you create personalized insurance policies for clients?

    Mr. Agarwal: The process begins with a deep understanding of our client’s needs, risks, and specific requirements. Once we have a clear picture, we design a tailored product that addresses those factors. We then identify an insurance company that can offer the appropriate coverage and negotiate with them to ensure the best terms. Since we work with every insurance company and have access to a wide range of products, we can offer truly customized solutions to our clients.

    StartupTalky: What factors do you consider when assessing risks for businesses?

    Mr. Agarwal: We conduct a comprehensive process called Risk Audit & Assessment (RAA), which sets us apart from other industry players. This process begins with gaining a deep understanding of the business and identifying the specific risks involved. We then review all existing insurance policies to identify gaps and evaluate what is working and what isn’t. Through this thorough analysis, we can accurately assess the risks and provide tailored advice on the types of insurance coverage the business needs.

    StartupTalky: How does Ideal Insurance keep up with changes in insurance regulations?

    Mr. Agarwal: Keeping up with regulatory changes is a regular and straightforward process for us. Whenever regulations change, we promptly educate and train our team to ensure everyone is up to date. This continuous education allows us to stay compliant and provide the best service to our clients.

    StartupTalky: What challenges did you face using data to improve your services?

    Mr. Agarwal: Using data to enhance our insurance broking services has presented several challenges. One major challenge was integrating data from diverse sources into a cohesive system, ensuring accuracy and consistency across all platforms. Additionally, analyzing large volumes of data required advanced tools and expertise to extract actionable insights effectively. Data privacy and security were also critical concerns, necessitating robust measures to protect client information.

    Fostering a data-driven culture within the organization involved significant effort in training and aligning teams to leverage data insights for decision-making and service improvement. Since we have Pan-India branches and partners, collecting data efficiently is key to ensuring a free-flow process, such as the seamless renewal of insurance policies. Despite these challenges, overcoming them has been crucial in driving more informed and effective service delivery.

    StartupTalky: What are your goals with the recent mergers and acquisitions?

    Mr. Agarwal: Ideal Insurance Brokers is actively pursuing growth through strategic mergers and acquisitions, such as our recent mergers with MK Insurance and Narnolia Insurance Brokers. Our primary goal is to enhance our portfolio and expand our geographical footprint. We’ve identified a significant challenge in the market where smaller brokers and agents, handling premiums in the range of ₹5-50 crore, struggle to grow consistently due to increased competition and market pressures. These smaller businesses often find it difficult to sustain profitability.

    To address this, we’ve created a platform that fosters mutual growth. By offering our knowledge, support, and technology, we help these businesses leverage our brand and expertise, creating a win-win situation for all involved. Over the next two years, we aim to acquire 15-20 broking firms and large agents, reaching a premium goal of ₹1000 crore, with at least 50% of that coming from acquired businesses.

    StartupTalky: How do you plan to expand and grow Ideal Insurance in the coming years?

    Mr. Agarwal: Our next goal is to reach the ₹1000 crore mark in premiums by 2025. Our growth strategy focuses on two key areas. First, we’re expanding our direct commercial business, with a strong emphasis on SMEs. Our aim is to become the leading insurance provider in the hospitality sector. Second, we’re committed to acquiring and supporting other agents, helping them grow alongside us. By combining these efforts, we plan to achieve significant growth in the coming years.

    StartupTalky: How has investment from Venture Catalysts helped Ideal Insurance?

    Mr. Agarwal: We have raised a small round of funding from Venture Catalysts (VCATs) to support the acquisition of Emkay Insurance Brokers. By 2024, we had secured over $1 million (INR 8 crores) in pre-series A funding. This investment was crucial for addressing our working capital requirements. While we are a profitable, bootstrapped company that has grown by reinvesting profits, the rapid pace of our expansion necessitated additional funds to maintain smooth operations and manage cash flow effectively.

    StartupTalky: What makes the company culture at Ideal Insurance unique?

    Mr. Agarwal: At Ideal Insurance, our company culture is defined by several key elements:

    1. Culture of Learning: We foster a continuous learning environment where employees are encouraged to develop new skills and advance their knowledge. We are eager to help individuals thrive in their professional fields, always offering our support.
    2. Support and Training: We invest in training and support for those who are eager to excel, ensuring they have the resources and guidance needed for success.
    3. ESOPs for Employees: We share Employee Stock Ownership Plans (ESOPs) with those who are passionate about building Ideal into a bigger brand.

    StartupTalky: How do you manage your roles as an entrepreneur, author, and venture capitalist? Any key strategies?

    Mr. Agarwal: I like to maintain a balance in my roles as an entrepreneur, author, and venture capitalist, which involves clear focus and strategic time management. As an author, writing is driven by passion; I wrote my book ‘The Ideal Entrepreneur’ while traveling on flights and plan to pen down another book on scaling organizations once my company reaches ₹1000 crore.

    In my role as a venture capitalist, I’m not a regular investor but I invest in promising companies that I come across, prioritizing opportunities that align with my interests. My primary focus remains on my entrepreneurial venture, with most of my investments aimed at supporting the growth journey of Ideal Insurance. This approach allows me to effectively manage and integrate these roles while staying committed to my core responsibilities.

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  • How SaaS Can Be the Future of the Insurance Industry?

    You’re living under a rock if you don’t know what software is. We use it every day, day in and day out. Even if you don’t work on software, you know it. A game is a software made for leisure purposes, there is specific work software. The apps on your smartphone are also software. The point to be clear is basically we are drowned in software. Welcome to the 21st century.

    There is no lie in the statement that software has invaded the world. It has penetrated the deepest of our lives. As tech becomes more and more accessible, there is a sure chance it will grow manifolds. It has also penetrated the walls of industries, every company now is a software industry first and a product/service company second. SaaS, software as a service is the new trend. It has transcended boundaries and has leapt to the insurance world. This article talks about SaaS and its application in the insurance industry.

    What is SaaS?
    How Does Insurance Sector Works?
    How SaaS can Transform the Insurance Industry?
    Is there a Need for SaaS in Insurance Sector?
    Benefits of SaaS in the Insurance sector

    What is SaaS?

    Even if you are naive, you will surely know something about this synonym. SaaS or software as a service is a business model that has been intriguing every business mind out there. It is a model in which software is used as a service and a whole business organisation is built around the walls of these services.

    The reason for such popularity of software as a service model is simple to think of. They are easy to operate. Software is the best thing that has happened to humans after hardware tech. They are easy to use, have more efficiency, and are more effective for any scale of organisation. For example, Canva is a popular graphic design platform founded by Melanie Perkins, one of the world’s fastest-growing saas companies. It is valued at $40 billion.

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    How Does Insurance Sector Works?

    Most people are insured but why is the sector even needed? The insurance sector works on a very easy model of work. You love someone/something and you want to make them safe. So, businessmen came up with a cash-making idea. The model of insurance was made.

    Insurance companies will assure you of the monetary safety of the things/person you love and in return, they charge a little fee every month. That monthly charge is known to us as an insurance premium. And yes, you can even include yourself in the category of insurance and not just the precious things. The whole business is made on the basis of fear, or we can call it love. Many celebrities also ensure their body parts.

    Insurance companies work for a lot of people, thus, they take insurance premiums from a lot of people. Now the hook is that there are fewer chances of ‘disaster or ruin’ happening every day so they just save and invest the premium money. Or the insurance companies can use some of that money to pay claims for some disaster that may have happened to some insured.

    Insured things/people do not get ruined/die daily, so insurance companies save the premium and these earnings are invested. Making the whole business profitable.

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    How SaaS can Transform the Insurance Industry?

    Now that we have discussed software and the insurance industry, it is safe to walk on the path of the intersection. Software is known to manage digital data and make sense of data of any magnitude. Insurance companies are companies that operate with a lot of people (Insurance clients). The intersection does make a lot of sense.

    Software as a service has penetrated all the domains that humans have known, we mean, mostly though. In the industry of insurance, it has even more demand. It has made things simpler, easier and faster. That makes the work of the company, the firm and the client.

    This hassle-free functioning was not possible before this new entrant in the domain. The insurance industry now saves a lot of time and money that can be used somewhere else. Which clearly is a benefit in daily operations as well as in the long term.

    SaaS uses a licence and a delivery strategy that provides all the listed benefits of the insurance to the clients without even contacting the brick-and-mortar office. They kill the mediatory and increase the overall efficiency without even taking the support of a third-party source. This is cool and most people would love to pay for this software which actually gets the work done. SaaS provides the most up-to-date information to you and works on the new normal of the Internet.

    Talking about the cash of the business, most software doesn’t take a cut for themselves while they cater to a company. By most, we meant the on-premises and hosted systems. The fact that this software in the insurance industry has to deal with a lot of data, does not really bother their efficiency.

    Is there a Need for SaaS in Insurance Sector?

    There are a lot of activities that an insurance company has to do. They have to constantly improve performance, speed up the writing and acquire new and new businesses (Investment) as soon as possible. With all these hassles, the insurers also have to increase efficiency and cut expenses, and the more the better.

    With all this hard work, they still have to manage the clients’ risks well. They have to give strong competition and keep the existing customer happy while maintaining a good amount of new client base. All this can be easily overwhelming. This is the point in the picture when appropriate software comes into play.

    If chosen suitable and relevant software services for an insurance firm, they can do wonders. Otherwise, it is not to mention that any insurance company is fragile and can come down like a house of cards. A suitable software as a service results in a fast and developed approach and better work management. Let us see how SaaS is shaking things up in the insurance world. Before we prepare a firm to jump into the software train let us read the benefits.

    Benefits of SaaS in the Insurance sector

    As discussed above, the insurance sector has a lot of work to do and a lot of data to manage. Incorporating suitable software can help address those mentioned challenges. This will enable the company to focus on its core business model and be more profitable. This is the basic thing that technology does. It simplifies things at any scale.

    Catering to customer demands, lowering costs and providing security at a much better level are some of the benefits. Insurance companies can even entail cloud computing to use already-made configurations. Let us discuss the benefits in a little clear way.

    Forward-thinking

    Tell someone that you don’t want to use the software in your business, and watch them laugh. Forward-thinking is the phrase that properly explains the new innovations and the efficiency that they provide.

    If an insurance company uses the best software in line, and they have everything automated, it is obvious that it will attract more customers. This is a great method to stay competitive. As this is a really good competitive advantage.

    There are plenty of SaaS platforms like the Invoice cloud that companies can choose from and let them do the magic. Efficient software helps the IT department of an insurance company to manage more data with even more efficiency. Changes can be made easier and more rapidly than ever with no additional workloads.

    This makes the business a little more flexible and we all know flexible businesses survive the most. There is also personalised software that crosses paths with users. You can customise, and enable-disable workings as per your specific business needs and requirements.

    Greater customer retention

    Customers or clients are good for any business out there. If you can increase the comfort for them, it will bounce back and they will be more loyal to the business. The insurance business is a big hard business and there are many rivals in the market.

    In a market where everyone is trying to create differentiating factors, a great customer experience can go a long way in increasing retention. The software can make everything easy today, they can manage data, manage payments and improve the overall customer experience.

    SaaS is easily expandable and is updated from time to time. The software can make things possible like automatic renewals, and automatic payments of premiums from bank accounts and there are a lot more ways. This is an investment in the comfort of clients and will pay in future retention rates.

    Customisability and Scalability

    Most of the Software that is provided as services is tailor-made to the needs and wants of organisations. They are super customisable and highly scalable in this sense. As the industry of insurance demands more and more rapid growth and scale. It becomes imperative to improve working management. If they are not calling fast and maintaining efficiency, they will not be able to hold customer demands and eventually lose customers. Thus, the software does the work for them, most software is extremely flexible and highly customisable that can take the shape of any organisation.

    Data Guard

    Data is the most important and precious asset in this digital world. If a company does not know how to keep its data safe then it is bound to not survive. In the insurance sector, they deal with millions of clients who are unique and have their own set of information. If the insurance company is unable to keep the data safe and secure then they will soon vanish from the competition.

    SaaS systems are built with keeping in mind the security and guarding data that they will hold and manage in future. They have the capability to handle large sets of data with the same constant and clear security. They make sure that the insurance firm is never vulnerable in terms of data. These platforms are built with the thought of managing the data of each and every client while keeping a guard as they work and make sense of data for the company.

    Insurance firms save the two most needed assets in the world today. With good, efficient software they save time as well as money. The Information technology department saves time by focusing on more important things. The finance department saves money to invest more and earn more returns in present as well as the future. Customers are happy too. For example, a firm can include a chatbot for prospectus clients that can improve the experience.

    Albeit the fact that insurance software is effective and efficient, it is hard to prepare a company to incorporate software into the system. They have to look after many things before jumping into the storm. Let us see a few checkpoints before adding SaaS to an insurance corporation. For example, they have to plan everything in advance which can help decrease the hindrances in the process. Most software incorporates skill sets to handle all the data of the business architecture but they still have to be made personalised.

    Insurance companies also have to look at integrations that they can provide. Once the software is at work, they have to check the value added to the company. If something is not bearing fruit, it is important to cut that part off. Only allow integrations that serve the users in a better way than before.

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    Conclusion

    We discussed that software is the new ‘workers’. Needless to mention that these workers are a million times more efficient than their human counterparts. That is the reason why software is transcending barriers and now is used in almost every domain. They are now even in the risky business of insurance.

    Insurance companies can soar high with the help of these little thingies. They can manage data efficiently. They can improve the client experience which will help in more retention rates. They can save time and money with the help of suitable software.

    All of these benefits while still managing to be more secure and alert with data security. This is almost heaven for the insurance world. Never before this was possible and it is delightful to see how companies can perform with these technological aids.

    FAQs

    What is SaaS insurance?

    SaaS insurance is a delivery strategy that provides all the listed benefits to the clients without contacting the brick-and-mortar office. They kill the mediatory and increase the overall efficiency without even taking the support of a third-party source.

    What are examples of SaaS?

    Adobe, Google Workspace, Salesforce, ServiceNow, and Atlassian are examples of SaaS providers.

    Who is the largest SaaS provider?

    Adobe Inc, which has a Market Cap of $198.9 billion, is the largest SaaS provider.

    What is SaaS in business?

    SaaS is a software-as-a-service model where an application is delivered over the internet and can be accessed from any device with an internet connection.

    Why do companies use SaaS?

    SaaS eliminates the cost of purchasing and installing software and maintenance. Also, SaaS applications are easy to install and maintain than hardware installations.

    What are the most important aspects of SaaS?

    It is easy to use, has enhanced security, saves costs and is scalable.

  • Symbo – Providing Tech-Enabled Embedded Insurance Services for Businesses

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Symbo.

    India is the second-largest insurance technology market in Asia-Pacific. Through technology, the insurance industry is revolutionized to a great extent. Indian customers are inclined toward tech-enabled services as it makes the process easier and more accessible. With the main insurance sectors being life insurance, health insurance, property insurance, and commercial insurance, insurance companies are innovating their services. Symbo is an insurtech startup that provides insurance covers for different businesses. Their newly launched insurance services are eyewear insurance, footwear insurance, and even fitness insurance.

    Read the success story of Symbo, its founders, business model, insurance services, funding, and their marketing strategy.

    Symbo – Company Highlights

    Startup Name Symbo
    Headquarters Mumbai
    Industry Insurtech
    Founder Anik Jain, Mitesh Jain, and Adrit Raha
    Founded 2017
    Total Funding Raised $9.4 Million
    Website symbo.co

    Symbo – About
    Symbo – Industry
    Symbo – Founders and Team
    Symbo – The Idea and Startup Story
    Symbo – Services
    Symbo – Business Model and Revenue Model
    Symbo – Customer Acquisition
    Symbo – Challenges Faced
    Symbo – Marketing Strategy
    Symbo – Growth
    Symbo – Funding
    Symbo – Advisors and Mentors
    Symbo – Acquisitions
    Symbo – Competitors
    Symbo – Tools Used in the Company
    Symbo – Recognition and Achievements
    Symbo – Future Plans

    Anik Jain, Co-founder and CEO of Symbo

    Symbo – About

    Symbo is a leading embedded insurtech platform that enables any business to offer customized insurance and protection plans to their customers, right at the point of purchase. Its vision and mission are to be the world’s largest embedded insurance distribution platform providing best-in-class claims, consulting, and buying experiences to its customers and partners.

    Insurance has always been a product that has been “sold” and not bought by the customer. However, they strongly believe that if you offer relevant coverage to the user in a contextual setting, the adoption of insurance will increase. They want to be the company that offers these innovative and relevant insurance products, with a very seamless and frictionless buying experience.

    The core belief of the team is that insurance penetration can increase in a market like India if customers can experience the benefits of insurance at a smaller ticket size. An embedded distribution model can take this approach to masses.

    Symbo – Industry

    The global InsurTech market size is valued at $9.4bn as of 2020. India is the second-largest insurance technology market in Asia-Pacific and including Symbo, India has at least 66 insurtech companies accounting for 35% of the $3.66 billion in insurtech-focused venture capital invested in the APAC region.

    According to a recent survey of 500+ bank customers in India from SurveyMonkey, 91% of Indian digital bank customers would be highly interested in receiving embedded insurance offers based on their transaction data, as would 95% of traditional bank customers. ‘Convenience’ is the primary driver for their interest, stated by 63%. This stands as a testimony that Indian customers are welcoming embedded insurance and the industry has a major shift toward the tech side of it while making the process of Insurance even easier and more accessible to all. It will not be long before all insurance companies will start going digital and get into the Insurtech space that Symbo is in today. While the space and services will go digital, they will also evolve drastically in their technology capabilities that will be used even 5 years from now. It is safe to say that there might be a time when Insurance of any kind will be available online and the customers will not have to worry about filling out cumbersome paperwork for the same. The next couple of years is going to be very intriguing to look forward to and see how fast this digitally driven world will change the insurance space in the best way possible.

    Symbo – Founders and Team

    Anik Jain, Mitesh Jain, and Adrit Raha are the founders of Symbo.

    Anik Jain

    He is the CEO & Co-founder of Symbo. He has 17 + years of experience working in various fields. He also has experience in leading business units at various levels like start-ups, changes management in a mature organization. He also tends to specialize in the areas of strategy, change management, P&L responsibility, insurance, team management, channel management, business development B2B, broking and sales.

    Mitesh Jain

    He is a CTO & Co-founder and is an Experienced Founder with a demonstrated history of working in Technology Consulting and product management. He is also an Entrepreneur with experience in incubating business initiatives, evangelizing stakeholders, influencing industry thinking, and launching and scaling up products to deliver strong business impact. He also has Strong experience in solving large-scale problems in a complex regulatory environment through deep product thinking and focus on impact.

    Adrit Raha

    As a Co-Founder & Co-CEO, he has shared responsibility for overseeing all aspects of the business – from the company’s mission, vision and goals to setting strategy, and direction, and, most significantly, managing my super talented troupe. He is of the strong belief that technology, platforms and protection (be it health or insurance) have, is, and will always continue to evolve, and it so happens that tech innovation is the current now. Hence – Symbo

    Symbo has 100+ employees giving out their best services

    Symbo – The Idea and Startup Story

    Symbo was founded in 2017 with a focus on context-based, need-focused insurance that aims to help customers buy insurance covers based on their personalized needs. During the initial years, they tried to solve the problem of insurance distribution via multiple mechanisms because their vision was always to make insurance accessible to the masses. At one point they had an agent network of 1000s of agents who were using Symbo’s technology platform to distribute insurance.

    One such mechanism they experimented with was embedded insurance. They worked closely with an initial set of partners to understand what kind of risks and issues their customers are facing and they co-created unique insurance products for them.

    Some of the categories they launched were eyewear insurance, footwear insurance, and even fitness insurance. The customer response to these products was extremely encouraging prompting them to double down on the embedded distribution.

    As of today, Symbo has over 30+ insurance partners and over 30 insurance products which are being distributed via partners.

    Symbo – Services

    Symbo works with partners across e-commerce, retail, fintech, and other categories. By integrating Symbo’s powerful Covergateway API, a business can instantly start offering insurance products to their customers, right at the point of purchase.

    The API issues policies in real-time and Symbo has deep integrations with leading insurers in India. The entire buying journey for the users is very seamless, they can choose to purchase the coverage for the product they are buying with a simple opt-in.  The claims are also handled in a digital-first way. Customers need to just upload their policy details and photographs and within 48 hours, Symbo’s claim specialists review the claims.

    Their USP is that they give customized embedded insurance to the customers according to their needs, and providing API to other businesses not only benefits their customers but the online sellers as well. With a simple opt-in in the purchase journey, consumers can insure the product they are buying against common issues like accidental damage, theft, etc which standard warranties might not cover. The insurance coverage is powered by leading insurers in India and some of their largest partners include Lenskart, Bata, and Decathlon, among others.

    While Symbo’s core vision was always to make insurance accessible by innovative distribution methods, Symbo pivoted from an agent-first business model (POSP) to an embedded distribution platform in the last year. The Symbo is a part of Symbo Platforms Pte, which also runs an Enterprise SAAS platform for insurance companies to manage their distribution.

    Symbo – Business Model and Revenue Model

    Being a platform business, Symbo’s business model is to enable distribution along with its partners and monetize by having a share in every transaction.

    SAAS Platform

    Insurance companies buy their product to enable capabilities for themselves to have a fleet of insurance agents at their fingertips who are accompanied by a dashboard. This product acts as a centralized tool with tons of features to make the insurance journey better for agents, buyers, and companies. As an InsurTech company, all Symbo wants to do is make insurance better by implementing automation in the tool. This entire stack has all the capabilities and features that companies would want for example monthly subscription, data, analytics, reports, super-admin, 5-level user roles, agent onboarding, and state-of-the-art UI. They have crossed $1M in this line of business.

    Embedded

    This is the heart and soul of Symbo. In this model, they sell $1.5 per policy (which is their average order value) contributing to their overall GWP. Part of this is sent to the Insurer to the onboard partner and they take a certain revenue share out of this as Monthly Recurring Revenue. Currently, they have 10 partners onboarded with them with around 150k policies solder per month.

    Symbo – Customer Acquisition

    In the early days of Symbo’s embedded business, they used to spend time at the store understanding customers’ buying behaviour. They worked with the brands to learn about the top reasons their customers were unhappy and created coverage plans that were relevant to the brand’s customers.

    They spoke to as many customers as possible during their store visit and explained to them the benefits of insurance and started to sell the initial set of policies.

    A lot of their learnings during the initial days of their field visit came to use as they started to scale. They spent a lot of time with store managers and staff to train them on how to sell Symbo’s products. Their marketing collaterals are designed to keep the end customer in mind.

    They also ran a few joint offers and promotions with their partner brands that have led to significant product awareness and growth.

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    Symbo – Challenges Faced

    Pivots are always challenging. As they moved from a traditional broker to a technology-first insurtech platform, they had to build the product to support the new use cases, at scale. Since they enable sales of insurance within the partner’s point of sale, they had to build the right integrations and user journeys to ensure the purchase journey is seamless for the user.

    Their relationships with insurer partners were one key element that helped them execute the pivot smoothly. They had tremendous support from all the insurers for them to become an embedded insurtech platform, right from the product they wanted to enable integrations with their systems.

    It is hard to market a product that lacks quality and easy for products that shine bright with quality. They knew that they have the best technology for embedding insurance be it any way possible – standee QR code or website integration. And with that, they needed to market strongly.

    The moment they received a few references from their clients they immediately knew they are marketing it right. The joy of achieving successful word-of-mouth in the days of the Internet is as overwhelming as getting ample leads with low costing clicks as they have been doing before. However, they think there is still a long way to go.

    Symbo – Marketing Strategy

    They invite you to have a look at the Kanban board at their office where they have brainstormed many marketing campaigns and PR ideas. They have sufficient ideas with them (inside the Insurance sector itself) to create an ever-lasting dent within the subconscious of the masses. They have not set out any campaigns right now as they have kept them occupied with digital advertisements on different platforms. They will be capitalizing on our data and coming out “strong and viral” with their campaigns very soon.

    Symbo – Growth

    The embedded insurance business is focused on India, while the SAAS platform business has customers across Southeast Asia.

    Some of their notable insurer partners are:

    • Reliance General Insurance
    • TATA AIG Insurance
    • HDFC ERGO
    • Max Bupa Health Insurance
    • BAJAJ Allianz
    • Religare

    The list of distribution partners continues to grow with brands like Lenskart, Red tape, and Decathlon being some of their key relationships. With over 2M policies issued, they are growing over 30% MoM.

    The plan for the next 2 years is to be able to provide customized embedded insurance in as many spaces as it is possible for us. Like most high-growth startups they are in talks with a bunch of investors and would bring in the right strategic partner who can help them fuel the business expansion.

    Symbo – Funding

    Symbo has raised a funding of $9.4 Million in March 2021.

    Date Stage Amount Investors
    March 2021 Series A $9.4 Million Led by CreditEase Fintech Investment Fund and San-Francisco-based investment firm. Think Investments, with participation from existing investors Integra Partners, Insignia Ventures, and AJ Capital

    Symbo – Advisors and Mentors

    Mr Sanjeev Jha has been their mentor. He has worked, and had experience, across geographies including India, the Middle East, South Asia, South East Asia, Europe and North America. He has been an advisory board member for Symbo for a year now. Apart from Symbo, he is also an advisory board member for many other companies.

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    Symbo – Acquisitions

    Symbo has acquired ReLeague Enterprises Pvt. Ltd. in August 2018.

    Symbo – Competitors

    Some of the top competitors of Symbo are:

    • Acko Insurance
    • Turtlemint
    • Cover Genius
    • Toffee Insurance
    • Zopper Insurance.

    Symbo – Tools Used in the Company

    They use all the white-label assets and make full use of open source tools and data available and give due credits wherever required.

    Symbo – Recognition and Achievements

    Symbo has been awarded the “Digital Insurance Innovation” of the year award from ET BFSI at the World BFSI Congress and Awards 2020.

    The startup has also won the “Digital-Insurance Broker” award at SBR Technology Excellence Awards in the year 2020.

    Symbo – Future Plans

    At this point, they are focused on growing their partner base and growing the number of policies. Having seen some of their initial categories like eyewear, and footwear scale, they are working with the insurer to make the program and coverage a lot more exciting for the customers as well as introduce newer categories.

    FAQs

    Who is the founder of Symbo?

    Anik Jain, Mitesh Jain, and Adrit Raha are the founders of Symbo.

    When was Symbo founded?

    Symbo was founded in 2017.

    What are the services offered by Symbo?

    Symbo provides embedded insurance for different Businesses.

    • Logistics Business
    • Healthcare Business
    • Retail Business
    • Eyewear Business
    • Travel Business
    • Footwear Business
    • Digital Business
    • Fintech Business
    • Furniture Business

    Who are the top Competitors of Symbo?

    Some of the top competitors of Symbo are:

    • Acko Insurance
    • Turtlemint
    • Cover Genius
    • Toffee Insurance
    • Zopper Insurance.

  • Navi Success Story – Driving Smooth Transition of Financial Services Even Amidst Pandemic!

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.

    Consumer durable financing demand is expanding across India as the country’s urban population grows, brand awareness grows, and disposable income rises. Because it was the only secure and available choice for customers during the lockdown, internet options reported increased usage of financial services.

    The Indian banking system is undergoing an unprecedented shift. Digital lending strategies are getting popular, putting banks’ conventional retail lending procedures on alert.

    Even though the transition is pandemic-driven, the technology revolution that swept the financial world in the pre-Covid eras was on the verge of launching digital lending platforms. However, the virus made it grow at an incredible rate.

    In 2018, Sachin Bansal and Ankit Agarwal formed a financial services firm based in India called Navi. The headquarters of the company are in Bangalore. Digital personal loans, home loans, healthcare insurance, mutual funds, and microloans are all available through Navi.

    The business today has millions of users, more than 3 billion apps downloaded, 825 thousand or more investors, 36 lakh or more satisfied customers, and 105 thousand or more health insurance policies sold to date.

    Startup Name Navi Technologies
    Also Known As BAC Acquisitions (BACQ), NAVI Finserv
    Legal Name Navi Technologies Pvt. Ltd.
    Headquarters Bengaluru, Karnataka, India
    Industry Banking, Financial Services, FinTech, Insurance
    Founders Ankit Agarwal, Sachin Bansal
    Founded 2018
    Areas Served India
    Current CEO Sachin Bansal
    Website www.navi.com

    Navi – About and How it Works?
    Navi – Industry
    Navi – Founders and Team
    Navi – Startup Story
    Navi – Name, Logo, and Tagline
    Navi – Vision and Mission
    Navi – Business Model and Revenue Model
    Navi – Funding, and Investors
    Navi – Investments
    Navi – Acquisitions
    Navi – Growth and Revenue
    Navi – Products and Services
    Navi – Layoffs
    Navi – Competitors
    Navi – Future Plans

    Navi is working on a digital lending platform that will make finance-based services more economical, simple, and relevant to everyone. Navi is a digital lending software that offers you loans up to Rs. 20 lakh in an entirely cashless approach. The company’s platform enables customers to access financial services at a low cost through customer-friendly and innovation-driven enterprises in the financial services, banking, and insurance spaces.

    IT and consulting services, non-banking financial services such as loans and microfinance, insurance products, and mutual funds are among Navi’s integrated activities. The Securities and Exchange Board of India has also granted the business a stockbroking and investment advisory license, according to the regulatory filing (SEBI).

    The duration of the loans offered by Navi ranges from 3 to 36 months. Navi Finserv also offers 2-wheeler, residential, local business, and educational loans in addition to consumer loans.

    Navi works in three simple steps:

    • Select the loan and EMI amount.
    • Complete KYC using Aadhar and PAN.
    • Instantly, money is transferred to your bank account.

    During the projected period, the digital lending market is estimated to grow at a CAGR of around 11.9% (2022–2026). Because of the COVID-19 outbreak, SMEs all around the world struggled to raise funds to keep their operations running during the crisis period.

    An important driver that is driving the industry’s expansion is shifting customer expectations and behavior as a result of the numerous advantages provided by the digitalization of banking and financial services. Consumers come from various backgrounds and will need the loan for several reasons, including personal loans, SME financing, and house loans, among many others.

    The lending environment has evolved dramatically over the years because of the fast implementation of digitalization in the BFSI business. In several areas around the world, conventional lending is still practiced. The advantages given by digital solution providers, on the other hand, are progressively paving the way for business adoption of digital lending solutions and services.

    Furthermore, various technical improvements, such as the widespread usage of smartphones, have resulted in a rise in the acceptance of digital banking across a variety of end-user industries. Artificial intelligence, machine learning and cloud computing are also beneficial to financial institutions and banks because they can analyze large volumes of client data. This data and information are then compared to produce findings on the appropriate assistance that clients desire, thereby assisting in the development of customer relationships.

    Navi was founded by Ankit Agarwal and Sachin Bansal in 2018.

    Sachin Bansal - Co-founder of Navi
    Sachin Bansal – Co-founder of Navi

    Ankit Agarwal

    Navi’s Chief Financial Officer is Ankit Agarwal. Ankit Agarwal studied computer science at IIT Delhi and then obtained an MBA from Ahmedabad’s Indian Institute of Management. Agarwal was previously the VP at Deutsche Bank. He also served as VP and Director at Bank of America before founding Navi with Sachin Bansal.

    Sachin Bansal

    Sachin Bansal joined Techspan after finishing his degree and worked there for a few weeks. As a senior software engineer, he joined Amazon.com India in 2006. He quit Amazon in 2007 and co-founded Flipkart with Binny Bansal, his business partner. Bansal had served as the chairman of Flipkart for over 10 years before leaving the company in 2018. The ex-founder of Flipkart then founded Navi in the same year.

    Navi Technologies chief Sachin Bansal announced that the company has appointed Vidit Aatrey as its independent director. The co-founder and CEO of Meesho, Aatrey’s appointment has been effective since April 9th, which is still subject to the completion of some formalities. Abhijit Bose, Shripad Nadkarni, and Usha Narayanan are the three other directors named by the company; Bose is the Head of India of WhatsApp and the founder of Ezetap; and Nadkarni has worked with reputed organizations previously like Coca-Cola, Johnson & Johnson, and more. and Narayanan has previous experiences with Lovelock & Lewes Chartered Accountants LLP, PricewaterhouseCoopers, and more.

    After leaving Flipkart in December 2018, Sachin Bansal and an IIT-Delhi alumnus created BACQ Acquisitions Private Limited, which was eventually rebranded ad Navi Technologies Private Limited.

    Soon after leaving Flipkart, the co-founder and chairman changed course to continue his mission to make his long-term dream happen. Sachin Bansal had his heart set on another great thing, even as his Flipkart dream came to an end. Bansal’s insatiable pursuit of something new can be observed in the fact that he has only spent a few months since leaving Flipkart without investing in or acquiring a firm, mostly for his current venture, Navi Technologies.

    Despite the lockdown, Navi’s founder and CEO invested INR 3,000 crore in his firm and built a personal lending app. Flipkart, like Navi, which has acquired a series of businesses in the last 2 years, was built on a foundation of mergers.

    Navi stands for “new” which depicts what the company stands for.

    The new India is becoming more and more accepting when it comes to the digitalization of financial services and banking, which is what Navi does.

    Navi’s tagline says, “Get Instant Loan using Navi.”

    Company Logo of Navi
    Company Logo of Navi 

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    Navi’s mission statement says, “Our mission is to provide financial products and services that are simple, affordable and accessible by building a customer-centric and technology-first organization.”

    When it comes to Navi Technologies Business Model, the company has emphasized technology-enabled financial and banking services, as well as the seamless integration of the neo banking model with traditional banking services and assurance. To gain domain understanding, Sachin Bansal has teamed up with fellow IIT Delhi alumni Ankit Agarwal, who is a banker by profession.

    “Building a universal bank is a reflection of our commitment to provide financial services to those who need them most. Our vision is to go beyond what hitherto has been broadly defined as ‘financial inclusion and provide access to formal financial services using technology that people can use intuitively and easily.” – Sachin Bansal.

    It’s worth mentioning that Navi only operated for 3 to 4 months in FY19. Navi’s NBFC business provided over 72% of this income in the form of interest income and related fees. The remaining 8% and 20% of revenue came from the insurance industry and advisory services, respectively.

    Navi Technologies has raised funding in over 6 rounds the latest round of funding was raised on May 12, 2022.

    Date Round Amount Lead Investors
    May 12, 2022 Debt Financing Round $ 72.62 million –
    Apr 13, 2020 Private Equity Round $26.51 million Gaja Capital
    Apr 2, 2020 Funding Round $398.99 million Sachin Bansal
    Jan 10, 2020 Venture Round $30 million International Finance Corporation
    Nov 14, 2019 Funding Round $117.97 million Sachin Bansal
    Jan 31, 2019 Angel Round $7 million Sachin Bansal

    Navi Technologies, a four-year-old financial business helmed by Sachin Bansal, is the latest Indian fintech startup to submit a DRHP with market regulator SEBI. The loan-providing fintech business plans to raise INR 3,350 crore in the public market.

    According to the DRHP obtained, the IPO offer would be made only through a new share issued. This means that no firm shareholders will sell their shares during the Initial Public Offering.

    While reading the DRHP, the fact that Navi Technologies’ promoter, Sachin Bansal, has a massive 97.39% interest in the business was found. Because the IPO offer does not contain an OFS component, he will keep 97.39% of the stock after the Public Offering. This implies he owns more of his firm than the well-known Nayar family, which runs Nykaa.

    Navi Technologies has invested in 6 companies.

    Date Organization Name Round Amount
    Feb 10, 2022 Infra.Market Debt Financing $30 million
    Jul 24, 2019 Kissht Debt Financing $6.06 million
    Jul 17, 2019 boAt Debt Financing $2.42 million
    Jul 3, 2019 Bounce Debt Financing $1.2 million
    Apr 24, 2019 KrazyBee Series B $12.10 million
    Mar 29, 2019 Bounce Debt Financing $4 million

    Navi Technologies has acquired 2 businesses to date.

    Acquiree Name About Acquiree Date Amount
    DHFL General Insurance DHFL General Insurance. is a Third Party Car Insurance company. Jan 2, 2020 –
    MavenHive MavenHive is a Bangalore based tech consulting firm. Dec 26, 2019 –

    Sachin Bansal, who has also been the founder of Flipkart, after getting an offer of $16 billion from Walmart, decided to sell his 5.5% stake in the company for Rs 7650 crore. However, this time with Navi, which he founded with a vision to build a financial services behemoth over the next two decades, he remained steadfast, which is the primary reason behind the growth of Navi Technologies. The company is already in the segments of asset management, insurance, and lending and is further looking to expand its horizons. The founder currently owns 97.39% of the company’s stakes, as per the reports dated April 3, 2022.

    The Navi company has launched a metaverse-based fund of funds scheme, Navi Metaverse ETF Fund of Fund, with the help of its mutual fund arm. Anmol Como Broking sponsors the Fund of Fund scheme of Navi, which will be managed by Navi Mutual Fund. The Fund of Fund scheme-owned assets will be managed by Navi AMC Limited.

    According to the company’s current documents filed, Sachin Bansal-led Navi Technologies became profitable in the fiscal year 2021, achieving a combined profit of Rs 71 crore. In the previous fiscal year, the firm had lost Rs 8 crore.

    On August 18, 2023, Navi reported revenue of Rs. 438.7 crore for the first quarter of FY24 and the previous quarter (Q4 FY23). However, there was a 2.3X increase when compared to the first quarter of the previous fiscal year (Q1 FY23).

    Navi Technologies Revenue Verticals FY21 FY20
    Interest Income INR 451 cr INR 143.02 cr
    Other Operating Revenue INR 235.6 cr INR 40.3 cr
    Insurance Business Revenue INR 92.4 cr INR 15.7 cr

    Navi’s sales increased by over 143% as the firm’s operations developed and the usage of banking and financial services via internet channels soared during the pandemic. The income was Rs 137 crore, up from Rs 56 crore the previous year, 2020.

    The company’s total earnings increased by 251% from Rs 199 crore in FY20 to Rs 779 crore in FY21, demonstrating the company’s expansion.

    The expenditures of Navi have increased by 217% year on year, from Rs 219 crore to Rs 673.8  crore (YoY).

    Navi Technologies Expenses Verticals FY21 FY20
    Employee Benefit Expenses INR 169.7 cr INR 61.6 cr
    Advertising and Promotional Expenses INR 38.7 cr INR 1 cr
    Other Operating and Admin Expenses INR 190 cr INR 95.58 cr
    Impairment Loss on Financial Assets INR 187.2 cr INR 23.8 cr
    Finance Cost INR 88.2 cr INR 37.02 cr

    Navi Technologies Financial Breakdown FY21 FY20
    Operating Revenue INR 779 cr INR 199 cr
    Total Expenses INR 673.8 cr INR 219 cr
    Profit/Loss Profit of INR 71.2 cr Loss of INR 8.07 cr
    EBITDA Margin 30.15% 22.02%

    The EBITDA of Navi improved positively. On a unit level, Navi Technologies has been reported to have spent Rs 0.86 to earn a single rupee of revenue during FY21.

    Navi Financials – FY19-FY21

    Bansal had broken down the lending business, stating that the company’s microfinance loan book was worth Rs 1,500 crore and its non-microfinance loan book was worth Rs 600 crore. According to Bansal, the company was disbursing loans of Rs 350 crore each month.

    “We are now comparing ourselves with banks and NBFCs. That is why we describe ourselves as a financial services company that happens to be good in technology. I don’t like the word fintech, lot of fintechs don’t have (lend from) their own books,” Bansal had said.

    Navi – Products and Services

    Navi App

    Navi app was released in 2020, and according to latest news the Navi Mutual Fund has effectively empowered 1 million Indians on October, 2023 by making investing money on the Navi app simple and reasonable.

    Navi – Layoffs

    According to sources, Navi just let go of 200 employees across the divisions of technology, products, and analytics on July 13, 2023. Employees had no prior knowledge of layoffs, according to sources. Meanwhile, a recruiter reported that the upper management had downsizing plans and that HR policies were in place to make sure that not much severance was needed to be paid.

    Company spokeperson said, “Navi conducts performance appraisals twice a year, which results in expected departures from the company. However, Navi continues to have multiple open positions and the company is expected to continue hiring many new employees this year, including a batch of 150+ campus hires who will be joining in August.”

    Navi Technologies’ main rivals include:

    • Autorite Des Marches Financiers
    • FIS
    • Abhipra Capital
    • Tacotax  

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    Navi Technologies, owned by Sachin Bansal, is allegedly aiming to file a draft red herring prospectus (DRHP) with SEBI for a 4,000 crore initial public offering (IPO) shortly.

    According to sources, the firm plans to make its initial public offering (IPO) in June of this year. The IPO will be conducted purely through fresh share issuance, with no component of an OFS (offer for sale). Bansal owns almost 97% of the firm and will not dilute his holdings in the IPO.

    The IPO is intended to aid Navi’s expansion in personal loans, microfinancing, and mutual funds, in addition to its mutual fund operations. Navi is also expected to utilize the funds to fund its expansion goals, which include creating a loan book of 20,000 crores in the next two years and obtaining roughly 15,000 crores in debt from the public markets over the same time frame.

    Navi became a public company in February 2022, in preparation for an initial public offering. The fintech firm has enlisted the aid of ICICI Securities, BofA Securities, and Axis Capital to manage its public offering.

    FAQs

    Who founded Navi?

    Sachin Bansal and Ankit Agarwal founded Navi.

    When was Navi founded?

    Navi was founded by Ankit Agarwal and Sachin Bansal in 2018.

    Is Navi NBFC registered?

    Navi Finserv (Navi) is an RBI-registered non-banking financial company (NBFC).

    How does Navi operate?

    IT and consulting services, non-banking financial services such as loans and microfinance, insurance products, and mutual funds are among Navi’s integrated activities. The Securities and Exchange Board of India has also granted the business a stockbroking and investment advisory license, according to the regulatory filing (SEBI).

    Who are Navi founders?

    The Navi startup founders are Sachin Bansal and Ankit Agarwal.

  • Business Model of HDFC Life Insurance Company | How HDFC Life Makes Money?

    Life is a gift that each one of us cherishes. Indeed, life is so beautiful, but at the same, it’s also very uncertain. As we drive through life, we find a partner, bring up a sweet family, and perhaps start a business. Today we’re enjoying our life, spending time with our loved ones, working for our family, no matter what our profession is. However, we still remain in the dark about what happens the following day.

    Here, the significance of insurance in a long-term plan rises. It’s because insurance is all about giving financial protection that helps us take care of ourselves, our families, and our loved ones. The main motive of life insurance is to furnish financial help to dependants upon the sudden death of their persons.

    These are the following reasons why people purchase life insurance:

    1. To extend another income arm, to restore the earning ability.
    2. To sponsor college education and dependency earnings for the family.
    3. To sponsor retirement plans, to repay a loan in the event of sudden death.
    4. To sponsor business or alliance in the incident of death of one of the company owners.

    The agreement expends a stipulated amount. It’s provided to the named legatee after the insured dies. The HDFC Life Insurance Company Ltd. is one of the most reputed private life insurance companies for the Indian citizens, who can avail of a wide range of life insurance plans and packages that the company brings.

    Founded in 2000, headquartered in Mumbai, HDFC is a subsidiary of Housing Finance Development Corporation (HDFC), and Standard Life, Abrdn, which operates as a long-term life insurance provider, which brings an array of individual and group insurance services.

    HDFC Life Insurance Company Highlights

    Startup Name HDFC Life Insurance Company Ltd.
    Founded 2000
    Owned by HDFC, and Standard Life, Abrdn
    Headquarters Mumbai, Maharashtra
    Industry Insurtech, Insurance, Fintech
    CEO Vibha Padalkar (CEO and MD)
    Website hdfclife.com

    About HDFC Life Insurance Company
    HDFC Life Insurance History
    Business Model Of HDFC Life Insurance Company
    What’s unique about HDFC Life Insurance Company’s Business Model
    How does HDFC Life Insurance company make money?

    HDFC Life Insurance

    About HDFC Life Insurance Company

    When we talk about life insurance companies, there are numerous such companies that strike our minds, out of which HDFC life is one of the prominent ones. HDFC refers to Housing Development Finance Corporation, which is a leading long-term life insurance solutions provider along with being a huge banking institution. HDFC currently boasts of having 421+ branches and operates in over 980 cities, villages and towns in India. The company is presently working with a whopping 16544+ people. Furthermore, the HDFC Life parent organization, HDFC Bank is hailed as the 3rd largest firm on the Indian product exchanges. Besides, it is also identified as the 19th largest employer in India, with the gigantic workforce it operates with.

    Areas of operation

    Since 23 October 2000, HDFC Life Insurance company has been serving as a trusted life insurance organization, which is currently spread in over 421 branches and 980+ cities and villages of developing India. This business has also established a liaison department in Dubai.

    With a multi-channel network, It has a powerful existence in its markets. Its network comprises bancassurance partners, SFBs, direct channels, MFIs, and insurance brokers. Apart from this, it also has partnerships with about 39 ecosystems that are non-traditional.

    Key products and services

    HDFC Life Plans
    HDFC Life Plans

    Its essential products and services include pension, health, savings, protection investment, and a wide range of plans providing the requirements of youths and women. These products add up to an aggregate of 37 commercial stocks with more than 13 group products.

    Yet, it formulates other optional riders (customization of existing plans with optional benefits) to help the customers. HDFC Life Insurance Company has about seven riders for its customers.

    The essential products include protection plans, health plans, retirement plans, rural & social plans, children’s plans, savings & investment plans, women’s plans, etc.

    Target Audiences

    The HDFC Life Insurance Company has been offering insurance solutions, both individual and group, across all cities of India. It mainly targets adults.

    HDFC Life Insurance Company has been successful in big cities such as Delhi, Pune, Mumbai, and Bangalore. It’s working to extend its services to the remotest corners of the country with the assistance of about 250 partners.

    HDFC is performing a commendable job both online and offline. Its overall strategy is to target audiences by establishing its presence on the three most prominent social media platforms: Twitter, Facebook, and YouTube.

    HDFC Life Insurance History

    HDFC Life Insurance was incorporated on August 14, 2000, and currently stands owned by HDFC Ltd and Standard Life. The HDFC bank now wants to own some additional stakes in the Life Insurance segment of HDFC Ltd to cross the 50% mark in shareholding. For this, the HDFC bank has written to RBI on April 5, 2022, requesting the approval of owning 47.82% shares that HDFC Ltd. owns in HDFC Life, or buying additional shares from the market and thereby, increase its holding to over 50%.

    Starting in the month of August 2000, the HDFC life insurance corporation had successfully obtained the certificate of commencement of business not earlier than October 12, 2000. Furthermore, it was on October 23, 2000, that it obtained the certificate of registration from the Insurance Regulatory and Development Authority of India (IRDAI) to undertake the life insurance business. From here, to have partnerships with over 39 non-traditional ecosystems along with possessing a multi-channel network, consisting of Insurance agents, Bancassurance partners, a Direct channel, Insurance Brokers, MFIs, SFBs and more, the journey of HDFC Life Insurance is fascinating indeed!

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    –

    Business Model Of HDFC Life Insurance Company

    HDFC Life Logo
    HDFC Life Logo

    The HDFC Life has already evolved from a product-centric to a customer-centric model of approach. It needed to set the customers in the middle of our business model, influence the vast quantities of customer data that is being produced and deliver specific offerings fitted to their unique necessities, which it is continuing to work on.

    Everything and everyone are required to be accessible anytime and anywhere. It implies that the services are needed to be created digitally first! The life insurance business models have improved over the last decade, ridden by the policyholders. The company is working on it and presently created a robust customer approval architecture; you would see businesses striding into the successive era of customer-centricity.

    The life insurance company of HDFC has classified its product portfolio that covers all the major five principal categories across the individual and company categories namely participating, non-participating insurance term, non-participating insurance health, other non participating, and unit-linked insurance products.

    Moving on to decoding the company’s business model, the company has two types of products and services. The first category includes lean products such as ULIP. The second category of products is the traditional products.

    Lean products contribute about 55% to the business model of the company. On the other hand, traditional products contribute about 45% to the business model of the company. The company also has tie-ups with many bancassurance, SFBs, MFIs which help in selling the products of the company on their premises.

    The company has a scaling-based business model, which means the profit during the initial years wasn’t much. HDFC Life Insurance Company started getting earnings from 2011. It’s the blend of perfect consumer-oriented architecture along with proper scaling and investment which has helped HDFC Life Insurance Company reach glorious heights.

    What’s unique about HDFC Life Insurance Company’s Business Model?

    HDFC Life Insurance Company is a cooperative business between HDFC Ltd and one of India’s leading housing finance associations, and Standard Life Aberdeen, an international investment company. It was established in 2000; HDFC Life is a prominent long-term life security solutions provider in India.

    1. Costumer-centered approach: Presently, one of the transformative ideas that propel customer-centricity to another phase is a customer approval architecture that chops across regions. The company’s visualization of the customer as the only authority to choose and decide when, how, and with whom to share the data is the key.

    It could be related to his/her health, finances, identity, location, driving records, and anything else produced (only) on the customer’s approval. While numerous leaders and entities could be behaving as the custodians of this data, they are not the owners – that authority would rest entirely only with the person. With such an architecture, insurers would be able to personalize, price better and even serve better!

    A consumer who provides the insurer access to their medical data constantly can be given bonuses for updating, enhancing, and maintaining their health metrics in a more organized way than the average consumer.

    Similarly, an individual who shares his/her driving data can look forward to discounts on machine protection on the back of their safe driving. The insurance company is taming success with such a consumer-centered approach.

    2. Coalitions & Tie-ups: On March 31st, 2020, the Company comprised 37 private and 11 group products in its portfolio, along with six discretionary rider benefits, catering to a different extent of customer requirements.
    HDFC Life proceeds to profit from its existence across the nation with 421 branches and more portions of touch-points through various coalitions. The coalitions include 270 bancassurance members, including NBFCs (Non-Banking Financial Companies), SFBs (Small Finance Banks), MFIs (Micro Finance Institutions), etc., and an additional 40 new ecosystem me.

    ‌It’s a prominent financial business company in India that has always been fulfilling and ensuring quality services. It has developed an enviable foothold in the market as a finance and insurance provider.

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    –

    How does HDFC Life Insurance Company make money?

    HDFC Life Insurance Company makes money primarily via its life insurance plans, which are laid out as:

    • Protection Plans
    • Health Plans
    • Children’s Plans
    • Savings Plans
    • Retirement Plans
    • SHAURYA Plans
    • ULIP Plans
    • Group Insurance Plans
    • Discontinued Insurance Plans
    • Rural and Social Plans

    Now, let us understand how HDFC Life Insurance Company makes money through its business strategy by taking a small example. They take money from overseas and increase capital through investing in ECBs, the domestic bond market, Masala Bonds, deposits, and a variety of references. Commercial paper is just one of the numerous sources through which they increase their money.

    They generate income in two ways: Charging bonuses in trade for insurance range and also re-investing those dividends into other interest-generating assets. Like all private companies, HDFC insurance companies, too, try to market productively and lowers managerial costs.

    The returns from the premiums of policies are also a part of how the company generated its revenue. The other miscellaneous charges from the customers also contribute to the business model.

    The profitability mainly depends on three factors. These factors are:
    1. Profit extracted from policyholders
    2. Rate of claim settlement ratio
    3. Mortality rate

    With a well-prepared business model, the company has generated healthy revenue. HDFC Life keeps checking the rate of inflow and outflow, which helps it manage its revenue. The company has reported a 3% increase in its net Q3 profits, which rose from INR 264.99 cr to INR 273.65, whereas the total revenue of HDFC Life has significantly decreased from INR 21126 cr to INR 14222 cr, as of January 2022.    

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    Conclusion

    The above study on HDFC Life Insurance Company states all its key products and services to the insurers by making it a profitable business through their planning and strategies. They even perfected their business model and provided greater access to a holistic suite of services, including bank accounts.

    HDFC Life has been thinking of widening its agencies and also enhance its assistance to bonuses from 12-13%. With that too, the proportioned level of 25% by moving beyond the top 25-30 cities.
    The company plans to develop the agency force and look out for LIC’s defense of its attrition to private peers.

    HDFC is India’s leading life insurance company which is extending its range to you individually as well as group insurance solutions—and tailored to fulfill your needs, life objectives, and plans.

    FAQs

    What is the full form of HDFC?

    HDFC stands for Housing Development Finance Corporation Ltd.

    When was HDFC Life established?

    HDFC Life is a leading long-term life insurance solutions provider in India which was established in 2000.

    Who is owner of HDFC Life?

    HDFC Ltd. and Standard Life, Abrdn are the owners of HDFC Life.

    Is HDFC Life a subsidiary of HDFC Bank?

    HDFC Life Insurance Company Limited is a joint venture between HDFC Ltd. and Standard Life Aberdeen, a global investment company.

    Which is the HDFC bank parent organization?

    The HDFC bank’s parent organizations are HDFC Ltd. and Standard Life, Abrdn.

  • LIC Case Study | Success Story of Life Insurance Corporation of India

    Sales of life insurance policies are a vital source of revenue for any life insurance company and their primary motivation for doing business. Because today’s business operations are so intertwined, claim settlement services significantly influence life insurance policy sales. People can use life insurance plans to cover a variety of hazards throughout life.

    The insurance industry grew rapidly in the first two decades of the twentieth century. In 1938, it increased from 44 firms with a total business-in-force of Rs.22 crore to 176 companies with a total business-in-force of Rs.298 crore.
    The call for the life insurance sector to be nationalised had been voiced before, but it gained traction in 1944 when a measure to modify the Life Insurance Act 1938 was filed in the Legislative Assembly. However, it was not until 1956 that life insurance was nationalised in India when the Life Insurance Corporation was passed by the Indian Parliament on June 19.

    Origin of LIC
    LIC’s Objectives
    Growth of LIC
    LIC’s at Present
    LIC’s Products and Services
    LIC Services for its Employees
    LIC’s Marketing Strategy
    Conclusion
    FAQs

    LIC Case Study | Success Story of LIC

    Origin of LIC

    LIC logo
    LIC logo

    The Life Insurance Corporation of India was established on September 1, 1956, by the Ministry of Finance of the Government of India, with the goal of making life insurance more widely available, particularly in rural areas, with the goal of reaching all insurable persons in the country and providing adequate financial cover at a reasonable cost.

    LIC’s Objectives

    The primary goal of LIC is to promote life insurance across the country, particularly in rural regions and among the socially and economically disadvantaged, to reach all insurable individuals and provide them with appropriate financial protection against death at a fair cost.

    Maximise people’s savings mobilisation by making insurance-linked savings sufficiently appealing. Another goal is to function as trustees for the insured public in their individual and collective capacities, meeting the community’s diverse life insurance demands as the social and economic environment changes.

    LIC intends to involve all employees to the best of their abilities to advance the insured public’s interests by delivering prompt and courteous service.

    Growth of LIC

    In 1956, LIC had 5 zone offices, 33 divisional offices, and 212 branch offices in addition to its corporate office. Because life insurance contracts are long-term contracts that require a range of services during the policy’s life, LIC felt the necessity to extend operations and open a branch office at each district headquarters in subsequent years.

    The LIC was reorganised, and it created a considerable number of new branch offices. It shifted servicing tasks to branches due to the reorganisation, and departments were declared accounting units. It had a significant impact on the company’s success. You can observe that from about INR 200 crores in new business in 1957, the company only exceeded INR 1000 crores in 1969-70, and it took another ten years for LIC to reach the INR 2000 crore barrier. However, after reorganisation in the early 1980s, LIC had already surpassed INR 7000 crores in Sum Assured on new policies by 1985-86.

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    LIC’s at Present

    LIC has practically monopolised the solicitation and sale of life insurance plans in India, having existed as a massive insurance business for almost 60 years. LIC has expanded its operations outside of India to 14 countries to meet the insurance needs of Non-Resident Indians.

    With an asset value of INR 2,529,390 crores, LIC is now India’s largest life insurance business, controlled by the government. LIC’s headquarters are in Mumbai.

    It currently operates eight zonal offices and 113 divisional offices around the nation. It has 2,048 branches across India in various towns and cities.

    In addition, LIC maintains a network of over 15 million agents that sell life insurance to the general population. The LIC had a total life fund of $28.3 trillion as of 2019. In the 2018–19 fiscal year, the total value of sold insurance was $21.4 million. In 2018–19, LIC resolved 26 million claims. With 290 million policyholders, it is the largest insurance company in the world.

    The Life Insurance Corporation of India (LIC of India) is one of India’s largest financial organisations, providing comprehensive financial solutions for all aspects of life. It has a customer base of around 23 crores, making it the largest insurance company globally. After Indian Railways, it is the second-largest real estate owner in the country. The LIC advertises through newspapers, radio, television, billboards, and other media.

    LIC’s Products and Services

    The Life Insurance Corporation of India (LIC) offers a variety of life insurance plans. As a government-owned Life Insurance Firm, LIC’s policies are in high demand and appeal to a broad spectrum of consumers.

    LIC For endowment, LIC offers the Jeevan Pragati, LIC Jeevan Labh, LIC Single Premium Endowment Plan, LIC’s New Endowment Plan, New Jeevan Anand, LIC’s Jeevan Rakshak, LIC’s Limited Premium Endowment Plan, LIC’s Jeevan Lakshya, LIC’s Aadhaar Shila, and LIC’s Aadhar Stambh.

    LIC Jeevan Umang specialises in life insurance.

    LIC’s Bima Shree, LIC’s Jeevan Shiromani, LIC’s New Money Back Plan- 20 years, LIC’s New Money Back Plan-25 years, LIC New Bima Bachat, LIC’s Jeevan Tarun are some of the money-back plans available. Money-back plans include LIC’s Anmol Jeevan II and LIC’s e-term Plan.

    Their pension schemes include the Pradhan Mantri Vaya Vandana Yojana, LIC New Jeevan Nidhi, and LIC’s Jeevan Akshay.

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    LIC Services for its Employees

    Agents are being offered home loans.

    The LIC of India’s Agents Housing Scheme provides house loans to the company’s agents. It has a separate subsidiary, LIC-HFL, from which many housing plans are moved for fairer distribution.

    Employees are given meal coupons.

    In September 2010, the Life Insurance Corporation of India (LIC of India) introduced a one-of-a-kind benefit for all workers. The number of meal vouchers is determined by each team member’s position in the hierarchy.

    Team member participation in sports is encouraged.

    Employees of the LIC of India are encouraged to participate in various sporting activities to improve their physical fitness and overall personality. Employees have also spoken on behalf of the company at different national and international levels. It has recruited numerous workers from its Sports Recruitment Quota to maintain competitive excellence in sports and to compete on an equal footing with other businesses.

    Training its employees

    LIC has begun to provide training to its staff at all levels of the organisation. It has established a distinct Human Resources Development / Organizational Development (HRD/OD) Department to develop and enhance capabilities, commitment and foster a learning and performance-focused culture.

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    LIC’s Marketing Strategy

    LIC Life Insurance’s marketing approach is pretty basic. Its primary goal is to educate consumers about the company’s different policies and brands. Personal selling, exhibits, demonstrations at events, advertising, and innovative schemes have all been used by LIC to achieve this goal.

    As presents and incentives, policyholders are given bags, diaries, and calendars. As promotional activities, advertisements are displayed on TVs, newspapers, and billboards.

    A mobile advertising van circulates across rural regions, raising awareness of the firm. LIC-Life Insurance has a website and a webpage where it provides thorough information on each potential inquiry to satisfy customers.

    LIC is continually working to strengthen “Brand LIC” and strengthen the brand’s link with growing market segments. It has done so by maintaining a regular media presence in national and regional outlets.

    It has also sponsored several national and international programmes and a variety of activities such as newspaper campaigns and continuous coverage of goods in several publications.

    FAQs

    Who is the founder of LIC?

    LIC has been founded by Government of India in 1956.

    What are the Subsidiary companies of LIC?

    LIC subsidiary companies are:

    • LIC Pension Fund Limited
    • LIC Cards Service Limited
    • IDBI Bank Limited

    What is the number of employees in LIC?

    There are 1,14,000 employees (2020) working for LIC, and over 10 Lakh LIC agents.

  • Wedding Insurance: An Emerging Business Model

    Having insurance for anything that goes wrong ensures that you are shielded. The insurance will pay you back the money. Looking in the times we are, having industry in place is a must. Insurance is available for everything. Ranging from insurance for your car to one for your home or even your wedding.

    A humongous task
    But what if your dream day turns into a complete nightmare?
    Why get a Wedding Insurance?
    Types of Wedding Insurance
    How Wedding Insurance is Emerging as a new Business Model?
    FAQ

    Planning a Wedding is a Humongous Task

    Planning a wedding is no joke, and people involved in the wedding business will tell you about it. Behind the scenes of a single wedding day requires months or even a year of planning in advance. Besides, you want everything to be perfect and dreamy as per your wishes.

    For so long, the industry that has been dealing with weddings has been a completely different sphere. It includes:

    • Dressing
    • Cakes
    • Decorators
    • Food
    • Booking
    • Music
    • Venue

    And you know, the list does not end here. You need to constantly be on the look-out for everything.

    But what if your dream day turns into a complete nightmare?

    You can plan everything, but at times some things are beyond our control. But still, at times, not everything works out according to what you plan, and there goes the months of planning and taking every minute detail of planning right in the bin.

    Weather

    The last thing you want is a snowstorm to hit and not being able to do anything about it. Now, the climate is something that is natural, and you can’t help it.

    Fireworks gone wrong

    All the while, you are walking and your guests are holding sparklers to make your entrance memorable. Your dress accidentally catches your wedding dress on fire.

    Health issues

    What if your other half faces an emergency health problem right on your wedding day. Or someone from your immediate family.

    Why get a Wedding Insurance?

    Insurances act as a shield when something goes wrong. Planning every tad tidbit. Covering all the minor and major factors that go into the planning and arranging of your wedding day. Walking down the aisle when everything is just perfect. Because you do not want a scandal while having the day that you dream of coming to life.

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    Types of Wedding Insurance

    Event cancelation coverage

    Now, this policy will pay you back if your wedding is canceled over some of the reasons like the following:

    • The bride or the groom needs to be immediately deployed to the military.
    • If any extreme weather does not allow you or most of your guests to attend the event.
    • If either person from the couple could be facing any serious emergency health issues or someone from their immediate family.

    Just in case if you need to reschedule, the policy may also help you reimburse your money if you already have paid for the venue and the caterers under unforeseen circumstances.

    Which also includes:

    • Wedding gifts, photographs, videos that are lost or damaged.
    • If your photographer does not show a refund.
    • Repair or replacement costs for your wedding attire and rings.

    Event liability insurance

    Majorly limited to a 24-28 hours period. It helps if you are planning on a rehearsal. It protects:

    • The rehearsal dinner
    • Wedding ceremony and reception
    • The set-up and removal within 24 hours of the event.

    It also covers the cost if you are legally accused of injuring someone at your wedding or causing damage to the venue.

    How Wedding Insurance is Emerging as a new Business Model?

    Need of the hour

    The pandemic caused much chaos in our lives. Delayed the reopening of our schools, colleges, restaurants, parks, and some of the most important days planned by many. It prolonged many people’s weddings.

    Establishing trust with the customers

    Providing people with that peace of mind. The segment of the market that is booking halls for their weddings are also trusting. These wedding insurance companies, that they will protect their investments if anything goes wrong during these uncertain times.

    Specifically tailored policies

    The couples have the policy to choose from which suits them according to their wants. With the flexibility to also add some packages along with either event cancelation coverage policy and the freedom to add some specific package to the policy if needed.

    Search Engine Marketing

    The wedding insurance industry is leveraging platforms like Google Ads to increase their organic search results (SERPs). So, for example, if someone is looking for a company, it will use the keywords like “wedding insurance” and organize your websites by topic. So that it increases the probability of coming up in the search results.

    Using pay-per-click (PPC) allows you to pay a fee to have your website on the search engine result page when people are looking for specific keywords or phrases in the search engine.

    Social media marketing

    Reaching out to young couples looking to plan a wedding on social media. Especially the brides who look for the options directly on social media when researching for what they are looking for.

    These companies use Pinterest as it is the go-to place to plan anything and everything.

    Ranging from ideas for DIYS; indoor decor to planning your weddings. They expand their boards using seasonal photos, and optimize the boards in a way so they gain visibility on Pinterest.

    Referrals and Digital marketing

    There is no one better advocate for your business than a satisfied customer. Wedding insurance companies now have their own websites. To make their presence visible online in the digital world.

    Sharply pairing up the space with a section of reviews from satisfied customers with the service, that in turn act as referrals.

    They also use E-mail marketing appropriately for their wedding business and getting into the right directories for digital marketing.

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    FAQ

    What is covered by wedding insurance?

    Wedding insurances usually covers the cost of the wedding ceremony and reception if something goes wrong.

    How much does wedding insurance typically cost?

    Wedding insurance policies ranges roughly around $215 to $1300.

    What are the types of wedding insurance?

    There are two types of wedding insurance, Event cancelation coverage and Event liability insurance.