POLICY BAZAAR

GROWTH
STRATEGY
TABLE OF CONTENT
The structure of the presentation is to understand business, identify the current bottlenecks, and then
devise a strategy to overcome and grow sustainably while generating profits for all stakeholders

About Company

5C's Analysis

Business model canvas & service breakup

Problem identification

Root cause analysis (Balance sheet ,P&L statements)

Issue tree & competitive landscape

Strategy plan & recommended solution

Market Analysis

Opportunity and future roadmap

Executive summary
5C'S ANALYSIS OF POLICYBAZAAR
Company: Policy Bazaar is an Indian insurance aggregator founded in 2008 by Yashish Dahiya, Alok Bansal, and Avaneesh
Nirja. This fintech company offers multiple insurance plans under its portfolio such as life insurance, health insurance,
motor insurance, travel insurance, and group plans. Moreover, it claims to have processed 25% of India's life and 7% of
India's health coverage plans.

Collaborators: Insurer partners, Credit advisory bodies, lending partners, &Financial service partners

Competition: Policy advisor, Bank bazaar, Coverfox,acko, easy policy, insurance pandit, etc

Customers: Corporates, Any individual looking to purchase insurance plans for his/their family's health, motor,
travel, and life plans currently residing in the Indian boundary

Context: The Companies' integration & adoption of technology with effective marketing have helped them in
acquiring and increasing the number of active userbases. The company's vision is to bridge the high 83%
protection gap which underlies India while maneuvering in synergy with legal and optimizing high cost, lease,
interest,& IPR the challenges they will have to overcome.
 Business Model Canvas
CUSTOMER SEGMENTS
KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER
Traditional Marketing
PROPOSITIONS RELATIONSHIPS
Investors
Client relationship One stop solution for policy High repetitive customer Indian citizen looking to
Insurance companies listed
Information update purchase i.e. higher satisfaction purchase insurance
Marketing agencies Employee benefits Tie up with leading rate Looking to expand in SEA &
Software providers Government compliance insurance providers Better after Sales middle east so their
Brokers Process design Easy UI/UX Community Gathering demographic
Corporate firms
Brand equity developed by 24*7 Telesales assistant
Government
decade experience(Trust)
Big Retail Companies
Information flow
Tencent
Aftersales service
Banking firms Recovery cycle minimum
Leasing firms KEY RESOURCES Technology enabled CHANNELS
Time and money saving
Trusted Brand Word of Mouth
Hassle and document free
Information Database Website/app
Employees Telesales marketing
Website/app Social Media(SEO,SEM)
Supply Chain Offline Advertising: TV &
Strategic alliance radio ads( kapil & akshay
Effective UI kumar,pankaj tripathi)

COST STRUCTURE REVENUE STREAMS

Product updates & software licensing Policy sales

Marketing & advertising Lead generation (customer data)
General Operational & salaries Advertising
Infrastructure
Research and Development
Lease provider and Employee benefits
 Policy bazaar service breakout
Insurance Tax saving
14.2% 14.2%

Retirement plans Life insurance

14.2% 14.2%

Tax saving Health insurance

14.3% 14.3%

Car insurance
14.4%
ROOT CAUSE ANALYSIS
Policybazaar has negative cash flow from investing, operating & financing.
The 3major issues that policy bazaar has been facing are clearly witnessed in its balance sheet and profit & loss statements
(Highlighted in upcoming slides)
The Aggressive marketing budget has bolstered its User acquisition strategy but the right marketing mix is still unclear
The business has been impacted by the COVID-19 emergency as travel insurance came to a halt
The business model of policy bazaar is in a highly competitive landscape with less control and bleak margins. This enables providing
more employee benefits for retention, business growth, and privacy which indirectly has increased its expenses.
The trade receivables from the credit industry have been concerning as the loan recovery and IPR charges.
The significant percentage of loss the company is witnessing to IRDAI guidelines and compliances along with the recurring software
renewal and subscription costs.
The Income tax penalties sided with IT consulting fees have been surging yearly.
The negative cash flows from operating activities for Fiscal 2019 and 2020 were due to operating losses.. Net cash outflow from
operating activities was ₹2,821.16 million in Fiscal 2019, as compared to a restated loss before tax of ₹3,374.30 million for the same period.
This difference was primarily due to an Employee share-based payment expense of ₹505.74 million in Fiscal 2019. (As per RHP report)
Net cash outflow from investing activities was ₹12,017.54 million in Fiscal 2021, primarily due to investments made in bank deposits of
₹13,714.12 million which was partially offset by redemption of bank deposits of ₹2,522.08 million in Fiscal 2021. Net cash outflow from
financing activities was ₹233.91 million in Fiscal 2019, primarily from payment of principal and interest elements of lease liabilities of
₹233.91 million in Fiscal 2019. (As per RHP report)
Policy bazaar P&L Statement
Policy bazaar Balance sheet
ISSUE TREE : POLICYBAZAAR
COMPETITIVE LANDSCAPE
 MARKET ANALYSIS
The life insurance industry is expected to increase
at a CAGR of 5.3% between 2019 and 2023. India’s
insurance penetration was pegged at 4.2% in FY21,
with life insurance penetration at 3.2% and non-life
insurance penetration at 1%.
In terms of insurance density, India’s overall density
stood at US$ 78 in FY21. Premiums from India’s life
insurance industry is expected to reach Rs. 24 lakh
crore (US$ 317.98 billion) by FY31.
Union Budget 2021 increased FDI limit in insurance
from 49% to 74%. India's Insurance Regulatory and
Development Authority (IRDAI) has announced the
issuance, through Digilocker, of digital insurance
policies by insurance firms.
 FUTURE ROADMAP
Policybazaar has to follow a three-pronged strategy to improve its The money raised through IPO can be
2023
revenue model:- utilized for Marketing spent especially
a. Advertising model: Policybazaar needs to partner with B2B clients and for programmatic mobile marketing.
run programmatic ads on their platform for mobile gaming studios in the Launch retail operations in tIer-2,tier-3
early phase, Along with it to improve user experience by implementing cities of india.
AI/ML user interaction. Additionally, forming a subscription model for
premium customers with additional features.
b. Diversifying Investment: As the insurance segment is low margin high The operational and variable costs
2024
volume game, policy bazaar can experiment and form their fintech product require structuring, post-new user
to provide life insurance to under-poor segments which constitute largely acquisition from phase 1. Launching a
with government help. It can also use its existing database and imitate this fintech product for rural market while
in SEA and MENA regions. tie-up with government and
c.Technology and customer-centric: Although policybazaar has followed introducing subscription model for
this approach long back before any entrant. It needs to reduce TAT for premium user
customer credit processes and implement AI to reduce manpower operation
and provide the right information to its customer with accuracy. Experimenting on the MVP formed
2025
and developing a patent product after
optimization and scaling while
diversifying investments.Scale in retail
format in Indian rural market and SEA
EXECUTIVE SUMMARY

Policybazaar has incurred losses due to its business model and large
Process 01
competitiveness in the market
Policy bazaar incurred heavy expenses when its advertising budget was Diversifying investment and reducing
accentuated. However, they were able to increase brand awareness between variable costs and formulating a TAT for
the growth and maturity phases of PLC. all the trade receivables and proper
Policy bazaar can experiment to reduce manpower and integrate AI validation on onboarding insurers
platforms to reduce employee costs and provide better information flow
The losses incurred were due to employee benefits, marketing, financing, and Process 02
investing.
They can ameliorate their financial standpoint by improving their three Corporate insurance is a bigger market
revenue streams and also look to build new strategies in the fintech sector. and it could turn profitable deal if policy
Policy bazaar should come up with a subscription model for the premium bazaar gets with lower margins
userbase
They need to formulate TAT for the credit, and loan recovery process. Process 03
They can utilize their daily active user base and brand trust in upcoming
projects.
Improving UX and developing a real
fintech product as they have customer
trust and humungous active user base
THANK
YOU