COVERFOX INSURANCE – COVER KARO, KAAM AAYEGA !
CoverFox founded in 2013 with the aim to help offline agents go digital and grow their businesses.
Coverfox is one of India's most well-funded insurance start-ups, supported by prominent investors such as SAIF Partners, NR Narayan Murthy, the World Bank Group’s IFC among others.
It was The company resolves the issues pertaining to paperwork so that insurers are able to increase their operational efficiencies.
Currently the company is working with 35 partners to offer them packages related to health, general, life and travel insurance policies. The company has dispersed close to a million policies and recorded the growth of 300 percent in earned premium.
It also provides digital assistance and new age insurance platform to agents all across India via its digital application known as ‘Coverdrive’.
It allows any individual to make easy payment and keep all the records saved under one head. Further, it opens business opportunities for around 26 lakh insurance agents and helps them grow their business. So far, the application has recorded 80,000 plus downloads and it is expected to grow by 50 percent by 2021.
Coverfox is a start-up that has changed the ways insurance companies work, it has created a niche for itself and has managed to expand its service vertical.
It is more product centric and that’s what separates it from its competitors like Policy Bazaar as they are more people centric.
One of the major challenges was to gain the trust of people as they were sceptical about turning to digital platforms.
But today the company uses artificial insurance models to create a technology driven insurance platform that allows the user to compare the policy according to their budget from top insurance providers.
Its algorithm integrated system eases the process of policy issuance, endorsement, inspection and claims.
How Did Coverfox Build the Platform?
The company focussed on recognizing the type of products for agents, so that they sell the products which are relevant for the potential insurer. This was done with the help of a data scientist team who analysed wants and preferences of the customers.
Then, with the help of an advanced artificial intelligence model, the company was able to minimize the load of paperwork that helped in achieving the operational efficiency.
Lastly through analytics dashboard, automate tracking and maintenance of customer records became easy and more effective.
The CEO, Premanshu, said the model was like a SaaS solution for insurance agents that help them access the reports of customers on a daily, weekly, monthly basis.
The features like Premium Calculator made agents more active in dealing with customers as most of them could not calculate it accurately and later they used to fix it by paying from their own pockets.
Talking of revenue model, the company is working on fleshing out this part as it allows a commission model and earns 12 to 18 percent fee from its partners on sale of single policy and it also gets a commission when the insurances are renewed through their platform.
The platform is now reaching its efficient point to benefit both the end users and trying to scale up its market reach from the point of views of volume by venturing into the lucrative Tier 1 and Tier 2 cities.
It is continuing to add more insurance products into its line to build a complete insurance portfolio.
It has achieved digitization to a great extent with its general insurance product wherein most of the insurance took less than 4 minutes to insure. And in the next two to three years the company is also looking to venture outside India.
What Does the Future Hold?
The overall industry is expected to hit $280 Bn by 2020 but the digital penetration is merely 4 percent, there is a lot of untapped opportunity for the insurance companies to fill. However, the penetration is also expected to grow by 90 percent. But, experts say there is enough space to absorb a lot of players in the market.
The revolution lies in the changing the mechanism of policy buying in India, the buyers have now learnt to utilize the online platform and trust the online distribution channel.
From the company’s side, it is imperative to make sure that their buyers feel protected and safe at time of doing transactions. The only way to convince the people at large is to bring confidentiality in the data privacy and transparency in terms and conditions attached to it.
Just like how Flipkart and Amazon have taught the Indians to buy online, in the same way people will accept and adapt to the change in the online insurance sector.