Cover­fox 3D strat­egy - Data, Dig­i­tal, Dis­rup­tion

Banking Frontiers - - Insurance -

Deven­dra Rane, founder & CTO, of Cover­, an IRDAI au­tho­rized in­sur­ance broking firm, out­lines the firm’s busi­ness strate­gies:

Ravi Lal­wani: Which cus­tomer seg­ments are show­ing max­i­mum growth?

Deven­dra Rane:

Our cus­tomers are mil­len­nial, ur­ban and tech savvy; they mainly use the mo­bile plat­form to buy in­sur­ance poli­cies and for claim set­tle­ments. We mainly target peo­ple in the 28-35-year age group and we get good busi­ness from this seg­ment. As you will know most of the peo­ple of this age bracket in In­dia own bikes and cars.

Which new cus­tomer seg­ments are you plan­ning to tap in the com­ing years?

We have launched an app, `Cover­drive’, last year and around 60,000 cus­tomers have down­loaded it. The app helps in­sur­ance agents to sell in­sur­ance prod­ucts on be­half of Cover­fox. Most of our agents in the tier 2 and 3 cities are us­ing the app to sell in­sur­ance prod­ucts. It helps faster de­ci­sion­mak­ing as all the avail­able op­tions to the cus­tomers can be shown on the de­vice. Car deal­ers also use the app to sell car in­sur­ance poli­cies.

What are you plans to tap HNI cus­tomers?

We have been or­ga­niz­ing spe­cial cam­paigns for this seg­ment of cus­tomers to give de­tails of the prod­ucts that are avail­able. ULIP and term in­sur­ance are the pop­u­lar prod­ucts among HNI cus­tomers. In­dia-based HNI cus­tomers and NRIs are the two seg­ments we are tar­get­ing. It is dif­fi­cult for us to target In­dian HNI cus­tomers on­line, as mostly bankers and their own fi­nance man­agers take de­ci­sions on their be­half. Most of­ten they pur­chase in­sur­ance poli­cies through these sources. How­ever, we have spe­cial sales pro­cesses for the NRI cus­tomers. We have a team that works in night shifts to target NRI cus­tomers. Our ex­pe­ri­ence has been that most of the NRI cus­tomers buy health cover or term in­sur­ance for their par­ents in In­dia, where we help them se­lect the right prod­ucts.

Which are the pop­u­lar in­sur­ance prod­ucts in tier 2 & 3 cen­ters? Do you see any dif­fer­ence in the pur­chas­ing be­hav­iour of ru­ral and ur­ban cus­tomers?

Mo­tor in­sur­ance is pop­u­lar in metro cities while ULIP and term in­sur­ance get sold in the tier-2-3 cen­ters of In­dia. Cus­tomers in met­ros know about us and our ser­vices, while cus­tomers in the tier 2-3 cen­ters are familiar with our ac­tiv­i­ties. Our ex­pe­ri­ence has been that peo­ple in the metro cities are largely law abid­ing; but there is lesser ob­ser­vance of manda­tory laws in tier 2-3 cen­ters when it comes to is­sues like buy­ing mo­tor in­sur­ance. So, for us more busi­ness comes from the met­ros.

In terms of prod­uct ca­pa­bil­i­ties, how dif­fer­ent is Cover­fox from com­pe­ti­tion?

We are a tech­nol­ogy-driven com­pany. Most of our com­peti­tors fo­cus on call cen­ters to of­fer their ser­vices to the cus­tomers. Also they are more fo­cused on ULIP prod­ucts and on op­er­a­tion-driven sales and ser­vices. They are also us­ing tra­di­tional busi­ness mod­els, as they are get­ting scal­a­bil­ity in it.

How of­ten does your organizati­on con­vert leads into ac­tual sales?

In tra­di­tional in­sur­ance sales, it of­ten takes 3 days for mo­tor in­sur­ance and 15-20 days for term and health in­sur­ance leads to get con­verted into ac­tual sales. But, our sales team takes just 30 min­utes on an av­er­age to con­vert bike in­sur­ance leads into ac­tual sales.

How are you en­sur­ing loy­alty of your ex­ist­ing cus­tomers?

We have in­tro­duced an ex­press claims fa­cil­ity for our cus­tomers, in which the cus­tomer claims are set­tled within 72 hours. We have also in­tro­duced a nom­i­nee as­sis­tance pro­gram for our cus­tomers, in which we col­lect all the doc­u­ments of the nom­i­nees of the in­sur­ance pol­icy upfront and in un­fore­seen cir­cum­stances, it be­comes eas­ier for us to con­nect with the nom­i­nees and help them se­cure the claims. We have a very sim­ple and easy claim process. We also of­fer emo­tional and psy­cho­log­i­cal sup­port to the be­reaved nom­i­nees through our tieups with lead­ing psy­chol­o­gists.

Can you give some in­stances of in­no­va­tive prod­ucts and ser­vices you of­fer?

We are fo­cus­ing on data as there is lot of dis­rup­tion hap­pen­ing in data-re­lated tech­nolo­gies. We are fig­ur­ing out how tech­nol­ogy can be ef­fec­tively used to of­fer new ser­vices to the cus­tomers. We largely fo­cus on the ac­qui­si­tion side, for which we are get­ting a lot of help from the in­sur­ance com­pa­nies. We are also fo­cus­ing on cre­at­ing faster claims set­tle­ment pro­cesses. For ex­am­ple, in the Cover­drive app, we have in­tro­duced self-in­spec­tion ser­vice for our cus­tomers, which has poved to be very help­ful. Ama­zon is a long-term tech­nol­ogy part­ner for us. We are also us­ing blockchain tech­nol­ogy to check the au­then­tic­ity of cus­tomer data.

Deven­dra Rane men­tions that Cover­fox is now fo­cus­ing on data-re­lated tech­nolo­gies to de­velop new ser­vices fo the cus­tomers

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