New product innovations, tech, new players to spur InsurTech growth: Devesh Joshi

The insurtech industry has revolutionised the insurance industry in India, elevating the traditional or insurance processes, saving much time, resources, and capital leading to an increase in the overall profit levels of the industry. It has helped to enhance the insurance experience for the customers as well as the providers.

In 2024, the insurance industry in India is estimated to be reaching a market size of $210.6 billion, with life insurance dominating the sector at $105.70 billion. Moreover, there is a rise in demand for health insurance policies due to the increasing focus on healthcare in India.

RenewBuy is an insurtech company offering a diversified set of general and life insurance policies and other financial products. It simplifies the insurance process by leveraging technology and innovation, catering their products and services to the customers’ needs.

In a conversation with Adgully, Devesh Joshi, Chief Marketing Officer, RenewBuy, speaks about how new age insurance companies are getting into Tier 2, 3 markets using limited branding mediums and expenses. He also sheds light on how RenewBuy is tailoring its marketing efforts to resonate with the local cultures and preferences in Tier 2 and tier 3 markets, the way it is leveraging digital channels like social media, online advertising, and mobile marketing to reach customers in these markets, with limited budget, how it is offering simplified or customized insurance products, catering to the specific needs of customers in Tier 2 and 3 markets, and more.

How is RenewBuy tailoring its marketing efforts to resonate with local cultures and preferences in Tier 2 and 3 markets?

Tier 2 and 3 cities were once seen as the hinterlands with limited growth potential, but they have now emerged as vibrant centers of socio-economic change. With a growing middle-class demographic focused on securing their financial future, these cities are experiencing a significant shift. Over the past three to four years, especially in the wake of COVID-19, there has been a heightened awareness of the importance of insurance.

However, we recognized the immense potential in this market and envisaged the vast, untapped opportunities within smaller cities and towns, years before. This was the idea behind the foundation of RenewBuy and in the last eight years, we are present across 1500-plus cities, reaching out to 5.5 million consumers. More than 70% of our business comes from Tier 2, 3 cities, and beyond.

We built an InsurTech company that disrupts the traditional insurance ecosystem. We focused on building a tech-driven branchless model, which gets further channelized by our national network of insurance advisors. Our insurance advisors reach out to their consumers across the country, armed with the RenewBuy Mobile App, which recreates fully what an insurance company branch can do – and not just for 1 but multiple insurance companies.

With a limited budget, how are you leveraging digital channels like social media, online advertising, and mobile marketing to reach customers in these markets?

Our primary marketing strategy revolves around maximizing the potential of the RenewBuy app and insurance advisors. Over the years, we have continuously raised awareness through our digitally empowered advisors. These advisors went beyond simply offering insurance policies; they have educated consumers on the importance of insurance and guided them toward the most suitable options based on their individual needs. By building on community engagement through our network of insurance advisors, we have established a strong foundation and grown from there.

Through our analysis, we have found that by embracing digital insurance and empowering insurance advisors, the industry can achieve a growth rate of 30-35% in the short term. Additionally, this approach has the potential to make insurance agents three times more productive and efficient.

Additionally, we focused on developing a group of insurance advisors who had the passion and drive to become influencers. This initiative was designed to build a network of trusted.

RenewBuy influencers who not only strengthened our brand presence but also expanded our consumer base while boosting their productivity. Though implemented for select advisors, these individuals have been instrumental in raising awareness, generating word-of-mouth among consumers, and building a positive perception around the need for insurance.

Our next step is to develop a consumer-focused app, designed as a policy servicing and upselling platform. This app will empower our network of insurance advisors to better engage with and serve consumers, enhancing the overall customer experience.

Is RenewBuy offering simplified or customized insurance products that cater to the specific needs of customers in Tier 2 and 3 markets?

Yes, we had co-created customized and low-cost insurance, both in the life and health categories to help consumers in Tier 2, 3 markets and beyond. By leveraging technology and analyzing micro-consumer behavior data and buying patterns, we have developed and launched low-cost insurance products tailored to meet the needs of today’s consumers, breaking price barriers in those markets.

RB Health was launched in 2022, offering a host of benefits in pre-hospitalization and OPD treatments. The products are simple, easy to understand, 30% cheaper than the usual plans, and a permanent solution to non-hospital costs. It offers OPD benefits, along with a host of other benefits (under certain T&Cs). Over the last two years, RB Health received very encouraging responses from consumers across the country.

We recently introduced RB Suraksha, an affordable term life insurance plan specifically designed for consumers in smaller cities, particularly targeting the 'Missing Middle' who need coverage but find it financially out of reach. Traditionally, insurers have overlooked this segment due to low ticket sizes and high issuance costs. Addressing these challenges, we have created a straightforward and cost-effective product that is significantly cheaper to issue—at just 1/20th of the typical cost.

We plan to introduce similar products in the future to better align with the policies that consumers seek today. This approach is the most effective way to expand our reach and address the insurance gap across the country.

How is RenewBuy balancing pricing competitiveness with profitability in these markets?

For standard insurance products, we distribute the policies of our insurance partner companies. As an InsurTech distributor, we specialize in offering a wide range of insurance products for our insurance partners.

For our own low-cost, customized insurance products, our key advantage is operating without physical branches, which reduces our operational costs by 35-40%. Unlike most insurance companies, which struggle to enter smaller markets due to the low ticket size and high issuance costs, our lean model allows us to offer more competitive pricing, often below the market average.

What initiatives is RenewBuy taking to educate customers about insurance benefits and their importance in these markets?

In the insurance sector, we have seen that most consumers do not understand insurance products and have many questions, which stalls their decision. Every consumer has different needs even when it comes to standard products but especially in Health & Life category where the needs can be very specific.

This is where RenewBuy’s digitally enabled insurance advisors act like a catalyst. Our AI-driven, proprietary digital platform has empowered our 1.3 lakh insurance advisors to deliver personalized guidance to consumers. The advisors have not only helped consumers understand insurance products in detail but also provided unmatched convenience, offering a choice of multiple insurance companies, instant policy issuance, and seamless service during claim settlements.

To educate consumers, we are also leveraging social media through targeted awareness initiatives. Instead of frequently bringing in new brand ambassadors, we are utilizing our internal experts on our social media platforms; these experts provide genuine advice, helping consumers grasp at least the basics of insurance.

How is RenewBuy engaging with customers through offline events, activations, or community programs?

We have an internal team dedicated to regularly engaging with consumers and gathering feedback on our product offerings and services. These feedback and surveys enable us to gain deeper insights into consumer needs and expectations, allowing us to refine and enhance our products and services accordingly.

Could you share any challenges RenewBuy has faced while marketing in these markets and what you've learned from them?

Our biggest challenge in the early days was the lack of awareness amongst consumers. Even those who were aware were hesitant about buying insurance due to a significant trust gap in the market. Many consumers were skeptical, questioning whether insurance was a necessity or just an unnecessary financial expense. In the initial phase, we focused a lot on educating the public about the importance of insurance and how it can be protected during times of uncertainty and loss.

What is RenewBuy’s plans for expanding your reach in Tier 2 and 3 markets?

Currently, we have a presence in over 1,500 cities, towns, and districts, and in the coming years, our goal is to extend our reach to every village in the country. Our advisor network is rapidly expanding, and consumer outreach is accelerating in smaller markets.

Please share inputs on the trends, challenges, and opportunities in the InsurTech industry. How has RenewBuy’s performance been in FY 2024, and what are the growth targets for 2025?

InsurTech today is increasingly helping in product simplification, consumer communication, and last-mile activation. Beyond transactions and regular insurance, the InsurTech industry is also working towards automating risk underwriting and claim processing, which will further simplify the end-to-end insurance process. Tailored products will also shape the future of insurance and InsurTech in the country. There will be spurts of low-cost insurance, tailored to the smaller cities, towns, and rural communities.

InsurTech is set to thrive and stand out in the years ahead. InsurTech players are actively disrupting the traditional insurance landscape, driving innovation and efficiency. There is a surge in consumer interest in InsurTech solutions, reflecting a growing demand for more accessible and streamlined insurance products and services. Economic indicators such as GDP and per capita income are on the rise, indicating favorable conditions for increased insurance penetration. So, the sector will grow multi-fold, and we can envisage better consumer awareness, trust, and outreach in the next few years.

Regarding RenewBuy, in the next few years, we are focused on RenewBuy’s growth, in terms of tech development, product offerings, and accelerated consumer outreach. The business is growing, and performance is aligned with the company's vision. We want to increase our distribution reach across the country and strengthening technology is vital for increasing our presence in the smallest markets.

The use of artificial intelligence, machine learning, and automation is transforming every aspect of our insurance value chain; we are working towards improving claim settlements, and underwriting processes for which, we acquired Artivatic (cutting-edge, AI- Artificial Intelligence based InsurTech company). We are enhancing our distribution portfolio with more health and life products and doubling down on technology to improve the product & technology functions. We will come up with a consumer-centric platform, to improve consumer outreach and build better consumer experience.

The future looks promising for both RenewBuy and the InsurTech sector as a whole. We anticipate a wave of new product innovations, technology advancements, and the emergence of new players in the industry in the coming years.

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