Policybazaar.

com Marketing Analysis

MKTM503: Marketing Management – I

Academic Assignment 2

Name: Ashish Rathore

Section: Q2145
Reg No: 12101635
Roll No: RQ2145B31
Group No: 2
Submitted To: Dr. Ajay Bamba
Date of Submission: 04/10/2021

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Annexure-V- Cover Page for Academic Tasks

Course Code: MKTM503 Course Title: Marketing Management – I

Course Instructor: Dr. Ajay Bamba

Academic Task No:2 Academic Task Title: Assignment-2

Date of Allotment:13 /09/2021 Date of submission:23/10/2021

Student’s Roll no: RQ2145B31(Ashish Rathore) Student’s Reg. no: 12101635

Evaluation Parameters:

Learning Outcomes:

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other
student’s work or from any other source except where due acknowledgement is made explicitly
in the text, nor has any part been written for me by any other person.

Student’s
Signature:
Ashish
Rathore

Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: Max. Marks: …………………

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 Policybazaar.com

Introduction:

Policybazaar.com is India’s largest web aggregator and marketplace of all insurance products.
Policybazaar helps customers in researching and comparing various insurance policies, helping
them in making an informed decision. It offers everything from life insurance, health insurance,
motor insurance, and other insurance such as travel insurance and group insurance etc. It has tied
up with 50+ insurance companies and has almost 500+ insurance services and insurance products
on the platform. The platform is designed so that customers can easily compare insurance plans
based on their insurance requirements which is not chargeable.

Company profile:

Company Policybazaar.com
Headquarter Gurgaon
Industry Financial technology
Founded June 2008
Founders Yashish Dahiya, Alok Bansal and Avaneesh
Nirjar
CEO Yashish Dahiya
Employees 10000+

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Valuation $5.5-6B
Total Funding $766.6M
Logo and Tagline:

"Insurance Compare Kiya?"

Products and services:

The company showcases mainly the following insurance products of almost 50 insurance
providers:

• Life Insurance
• Term Insurance
• Health Insurance
• Vehicle Insurance
• Investment Plans
• Insurance Renewable
• Home Insurance
• Travel Insurance

Elements of Insurance Industry:

• Customer (Insured)
• Insurance Companies (Insurer)
• Insurance regulatory and Development Authority of India (IRDA), (Regulator)
• Web Aggregators
• Banks
• Surveyors
• Third Party Administrators

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 • Referral Providers
• National Securities and Depository Limited (NSDL), (Depositor)
• Distribution Channels
▪ Insurance Agents
▪ Insurance Broker
▪ Online portals
▪ Corporate Agent

Industry overview:

India’s total insurance market size FY2020 $280bn

Insurance density $78bn
Total insurance penetration FY2020 3.76%
Life insurance penetration FY2020 2.82%
Non-life insurance penetration 0.94%
Expected market CAGR between 2019 - 2023 5.3%

Segmentation:

Purchasing an insurance policy, unlike other markets, is not a hasty decision. As a result, selling
insurance online is quite different from selling retail online, and data is crucial in "pitching the

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appropriate product to the right buyer." Predictive analysis is used to determine when to contact
clients, which is crucial in the world of online insurance. Segmentation is done on various levels.

Segmentation by Geography: In 2016-17, Maharashtra, Delhi, Haryana, Karnataka, Uttar

Pradesh, Andhra Pradesh, Tamilnadu, Gujarat, and Rajasthan accounted for almost 80% of
Policybazaar's revenue. Even though these nine states are key contributors to the offline motor
insurance market, there is a gap. There is one significant distinction. In terms of states, the
Policybazaar portfolio has a positive skew. Haryana, Uttar Pradesh, and Karnataka are three states
in India. Maharashtra's, Tamilnadu's, and Kerala's relative shares Andhra Pradesh is significantly
less expensive than the offline market.

Surprisingly, the South-West belt of Andhra Pradesh, Karnataka, and Maharashtra is

Policybazaar's most profitable region, accounting for 1/3 of total revenue with a 61% loss ratio.
UP, Haryana, and Gujarat, on the other hand, were the worst-performing states, with a combined
score of 0 out of 100. With an 82% loss percentage, over a quarter of the whole business is lost.
Delhi showed a significant improvement. It outperformed its surrounding areas (in UP and
Haryana) and was ranked among the best in the country. The most profitable and largest segments.
However, breaking down loss ratio performance by large cities reveals the huge range of
performance and opportunities that exist even within these states. While the profitable states saw
a fair and significant share of cities with strong performance (e.g. Maharashtra with Mumbai and
Pune), the less profitable states saw a smaller share of cities with good performance.

Segmentation by Digital Behaviour: Without factoring in their real activity online during the
purchase process, a comprehensive analysis of digital customer behavior is impossible. This
segmentation centred on two critical parts of the consumer journey while purchasing a vehicle
insurance policy: (1) the number of days until the policy expires, and (2) the need for assistance
throughout the purchase process. The length of time until the existing policy expires appeared as
a critical variable. People who renew their motor insurance coverage at least four days before it
expires have a 20-25 percent lower loss ratio than those who renew within the last four days or
later. The loss ratio for the former group was 60-65%, compared to 80-85% for the latter group.

Target market:

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PolicyBazaar primarily targets customers in India who wish to buy insurance but have little to no
experience with the industry. The majority of Indians do not have insurance for a variety of
reasons, including mis-selling or lapsed coverage. When Policy Bazaar began, it was primarily a
lead generation firm. Previously, they would pass on information to partners anytime they
encountered people who were interested in insurance products. As time went on, they understood
they needed to shift their focus to aggregation, and that's when they began to gain traction.
Customers have diverse demands and choices when it comes to insurance goods, thus their entire
operation revolves around how they interact with them. Policy Bazaar is an online marketplace
where customers may compare various insurance plans and assess and analyze their value. And
that is how Policy Bazaar markets its business: by supporting customers in learning about various
insurance packages and giving them the flexibility to make informed decisions.

The company has partnered with insurance brokers to obtain information directly from them, such
as pricing, benefit, and insurance coverage, for customers to compare. The customer then selects
the best choice based on the information presented. This service is provided at no cost to the
customer. The policy bazaar has been rapidly expanding. Every month, they answer millions of
phone calls from customers. They used Amazon Polly, a text-to-speech tool that helps with voice
broadcasting, important voice warnings, and inbound calls, to lessen this workload. The
organization was able to replace long phone calls with pre-defined solutions to client inquiries
thanks to Amazon Polly. It allowed Policy Bazaar to send targeted responses to clients, improving
their experience.

Positioning of PolicyBazaar:

PolicyBazaar is positioning itself as customer-centric. The latest in the series of marketing

campaigns depicts moments of doubt that customers may have when purchasing protection
products. It answers these questions and emphasizes the significance of nurturing a relationship
with customers to create customer happiness. The first-ever localized marketing campaign for the
Kannada market has been launched by India's leading insurance marketplace and comparison web.
The new regional marketing campaign was devised to target Karnataka's 2 million-plus two-
wheeler riders, highlighting the convenience of renewing online and on time. Despite the fact that

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vehicle insurance is required in India, the majority of two-wheeler users on the roads do not have
legal insurance, including those in Karnataka, where over 50% of two-wheelers on the roads do
not have valid insurance.

In the TV commercial, Policybazaar.com emphasizes the simple process it has implemented on its
website for renewing a lapsed two-wheeler policy, in which all a customer has to do is take a
picture of the registration certificate and upload it to the website to compare all the plans available
for purchase and complete the transaction.

Policybazaar.com is working hard to tap into the two-wheeler insurance market's potential in the
southern states. It is the first open architecture marketplace to launch a specific multilingual
interface to assist two-wheeler customers in tier-II and tier-III cities in researching and purchasing
products online in their native language.

Huge Level of Television Advertisements: The corporation is a firm believer in advertising on

television because it sees a lot of promise in the Indian insurance market. PolicyBazaar's purpose
is to educate the general public in our country about insurance, including the need for it and its
benefits, and they feel that televisions can help them achieve this goal. Because the target
demographic spends the majority of their time viewing new channels and film channels, these are
the most commonly targeted channel genres for commercials.

Partnering at IPL: Cricket and the Indian Premier League (IPL) are huge in India. Advertising and
partnering with something as large as this is a fantastic marketing tactic in and of itself. Policy
Bazaar has always believed in IPL and believed that it might help them expand their audience,
which it did. The online insurance aggregator teamed up with IPL in 2020, and Akshay Kumar
was named as their brand ambassador. The organization feels that the IPL and television have
aided in the development of brand trust, which has helped them convert leads into actual buyers.

Competitive Analysis:

The web-based protection marketspace is exceptionally unique and profoundly serious in terms of
competition. Insurers are now compelled to ensure their pricing is competitive and can present
valuable products to the consumer to remain relevant. By enhancing the levels of transparency in

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product features, cost, and services, digital channels are leveling the playing field. Traditionally
the threat for online policy aggregators like PolicyBazaar are the other similar players who offer
similar services, but companies like Coverfox and Acko own their products on online platforms
giving tough competition. To grow in this highly competitive market, the company is rethinking
its business models to attract its young and future customer base.

The insurance industry is rapidly is shifting from traditional agent-based service to digital web-
based service, still, there is more dependence on traditional methods. In a report report by PWC,
27% of the insurance buyers still relies on Word of Mouth, 22% on Agents, this forms almost 50%
share of users who still go online for their insurance needs. The rest of the 50% market is very
fragmented, only 20% of the consumers rely on online aggregators such as Policybazaar, this 20%
are shared among all the companies in the market. With the changing consumer behavior and
macro-level disruptions, it is difficult to grow in competitive market without new business model
and innovation. As digital technologies are becoming more cost-effective and user-friendly
competition is continuously increasing in the online insurance sector.

Companies like Bank Bazaar and Acko are PolicyBazaar's main competitors in the internet policy
marketplace. To stay relevant in this market, businesses must be able to provide value for money
to consumers. However, the Policy Bazaar has improved its transparency in terms of product
features, costs, and services. To stay ahead of the competition, major market players are realigning
their business strategies to meet the requirements and expectations of future target groups of
consumers. Ecosystem services can help you not only establish loyalty but also improve earnings

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over time. The insurance market in India is changing, but it remains traditional to some extent, and
another challenge is encouraging customers online. According to a PWC survey, 275 percent of
insurance consumers still rely on word of mouth, while the remaining 22% trust agents, totaling
50 percent of online users. The remaining 50% rely on web aggregators, with 20% choosing Policy
Bazaar to design a future-ready approach. As digital technologies become more prevalent year
after year, they lower entrance barriers such as prohibitive costs and enable on-demand scaling of
businesses. As a result, the competitive landscape is likely to shift quickly.

PolicyBazaar strategy to compete: Policy bazaar presently sells 70% of all online insurance,
with the online lead generation market, where insurance aggregators sell leads to insurers,
accounting for the remaining 30%. According to them, it dominates the market with 4 out of 5
leads coming from the internet. Each year, more than 100 million people access the sites, which
provide more than 250 insurance policies. As a result, the company's focus should be on recruiting
additional users to increase beneficial network effects. There is a multi-homing fee, but users are
not charged. The user can also easily move between platforms, allowing them to offer their users
a distinct value proposition from various insurance firms. Policy bazaar also focuses on providing
other services in addition to insurance policies, intending to be a one-stop shop. It also intends to
launch a new vertical in financial services.

Market Segment which not been catered by Company:

PolicyBazaar is a leading company and their market is the whole of India. They need to be more
focused on the customer segment and they can do this digitization.

THE INSURANCE SECTOR IS BEING DIGITALIZED: The financial and insurance sectors
have benefited greatly from the digitalization of the insurance industry since it has given a huge
portion of the people simple access to policy purchasing and a proper understanding of all the
products available on the market. Insurance firms can also research a customer based on his digital
footprint, which includes his online presence, thanks to the digital realm. HDFC Life Insurance,
for example, uses the digital domain to identify current trends and offer products and coverage that
address them. One of the most prestigious instances of this is 'Cancer Care,' which offers not only
a wide range of coverage but also a range of services. In addition to digitizing the industry to bring

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it closer to consumers, the insurance industry has guaranteed that the most common reasons for
not purchasing insurance are addressed. There are several policies that have daily premiums as
little as Rs 10-15 and can be enhanced depending on the situation. However, the sector considers
it critical for customers to have correct documentation and identification evidence in order to avoid
fraud. In recent years, insurance firms have worked to make the process of purchasing an insurance
policy a more personalized experience for the customer. Most insurance businesses offer a variety
of products and distribution methods via which they can reach a wide range of customers. They
have simple, tailor-made goods that can easily persuade a millennial to purchase insurance
coverage. It is simple for the consumer to choose from a variety of products accessible at monthly
prices of Rs 500. Insurance companies frequently collaborate with small finance banks to reach
out to consumers in rural areas of the country.

New Product opportunity:

By carefully analyzing Policy Bazaar and their competitors, I was able to identify a new product
opportunity for Policy Bazaar, which is a request to home service, which will allow them to focus
more on people who are unable to compare policies because they are not used to it and also because
they do not know how to compare or where to start.

Request to home service: Successfully connecting with customers on an emotional level is the
key to establishing a human (or personal) connection. This entails displaying concern for
customers in your activities and having empathy for them during customer discussions. When you
focus on what your consumers believe, want, and feel, and when you put them first, it's easier to
establish a personal connection with them. Delivering a product or service that proves you've
listened to and understood a customer's specific demands will reassure them that they're in good
hands and have discovered the human-to-human connection they've been looking for. Getting
close with consumers gives service workers a tremendous opportunity to create inventive, unique
solutions to customer problems and serve up memorable interactions that customers will want to
tell their friends about.

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Customers should be treated as individuals: It's critical to remember that each customer is unique.
You'll see a huge rise in revenue if you recognize this and start providing customized, personalized
care to each customer as soon as possible.

To find out what your customers want, ask them questions: It's simple to quickly and efficiently
find what your customer needs from you and your business by asking targeted questions in a
conversational approach. As a fantastic service provider, it's your job to build a comfortable
connection with clients so they're satisfied and willing to provide important information to you.
The more you can 'dig down' to find out what's motivating their purchase, the more likely you are
to give a highly personalized product that they won't hesitate to buy.

Customers should be actively listened to: During talks with service employees, customers
frequently provide hints about what they truly desire. Unfortunately, if service personnel do not
pay attention, these crucial signs may be overlooked. Make an effort to actively listen to your
consumers and use the knowledge they provide—however oblique—to help you select the best
product or service for their requirements. When you get the product right, it shows the customer
that you've been paying attention and are committed to providing a solution that is tailored to their
needs.

Emphasize a product's or service's benefits: During client engagements, one of the best methods
to ensure customers are entirely delighted with their purchase is to convey the personal benefits of
the product or service. A client may be interested in a product's attributes (such as more battery
life or a wider color selection), but what they want to know is how the product will benefit them
personally. So, if a buyer says they're looking for a blender to prepare quick and easy breakfast
options, emphasizing a product's 'Five-second smoothie' function and 'rinse and go' cleaning
method will make the product instantly appealing—and personal—to the customer.

REFERENCES

https://startuptalky.com/startup-story-policy-bazaar/

https://www.policybazaar.com/travel-insurance/student/

https://link.springer.com/article/10.1057/gpp.2009.35

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https://startuptalky.com/policy-bazaar-marketing-strategy/

https://www.policybazaar.com/pblife/whats-new/policybazaar-is-the-story-of-persistence-
culture-brand-building-harsh-pamnani

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