Renewbuy, an online motor insurance platform, seeks to usher in a new era in the Indian motor insurance segment and in the process, change the way motor insurance is bought in the country, sold and serviced by leveraging technology and becoming an enabler by streamlining and digitizing the motor insurance category, an initiative that was unheard off until recently. This startup platform is backed by proprietary technology that maps both car and bike models and instantly seeks the lowest available quotes from multiple insurers allowing consumers to save up to 60% on their automobile premiums.
RenewBuy was setup in January 2015 and launched its’s customer platform in July 2015 with a 20-member team that has now grown to 50. This new online platform is doubling its’s revenues month on month and they continue to be boot-strapped and cost efficient despite growing at this pace. Recently, the company has raised $ 500,000 worth of funding from Mount Nathan Advisors, a Singapore based firm and plans to invest the money to continue to grow the business and build more innovative solutions on claims so that they can serve their customers better.
The portal is operated by D2C Consulting services and has four co-founders – Balachander Sekhar, Indraneel Chatterjee, Devesh Joshi and Sandeep Nanda. The team consists of experienced professionals from Insurance leadership, Technology, Product Management, Marketing and Sales background from leading ecommerce and insurance companies.
The founders are visionaries in themselves and they plan to bring about the following three fundamental changes in the market:
• Changing the consumer habit for good by making them adopt digital medium to buy motor insurance.
• Understanding the level of acceptance of their products and service by consumers through real-time feedback and their ability to nimbly address the same.
• Adopting measures to evolve their products and services to stay ahead of the competition while being relevant to the consumer always.
The company boasts of having some prominent insurance partners such as Bharti Axa, Iffco-Tokio, HDFC Ergo and Bajaj Allianz, Reliance General. And the good news is that it has an insurance broking licence from the Insurance Regulatory and Development Authority (IRDA) and promises to offer the lowest premiums for insurance coverage for automobiles.
Though the company is just a year old that does not stop it to take baby steps towards success.
Currently, the car and bike insurance market is an INR 30k Cr category and given the huge increase in both car and bike sales, this category is likely to grow to a whopping INR 50k Cr in premiums by 2020.
Meanwhile, given the advent of smart phone and internet users in India, it is estimated that 25% of INR 50k Cr (INR 12.5k Cr) will be transacted online. In several developed economies, this percentage has already touched 50% and above. RenewBuy as a company, seeks to gain a substantial portion of this online market and become a category leader. Amidst huge success, there is a juxtaposition of constant challenges as well which the company have to constantly greet.
As one of its founder said, “Like any start-up, we face challenges big and small on a daily basis and have to be nimble enough to manage them effectively. The biggest challenge that most e-commerce organizations and hence online motor insurance category faces is consumers’ comfort and habit in transacting online. Today 99% of motor insurance is sold offline and is dominated by large brick and mortar conglomerates and financial services powerhouses. It will be a tough and long journey to gain consumer trust and change their habit.” Impossible is nothing, really.