In the last blog, we did the detailed SWOT Analysis of MetLife Insurance, today let’s explore the SWOT Analysis of PolicyBazaar.
PolicyBazaar is an Indian insurance aggregator and multinational fintech company located in Gurgaon. It offers a digital platform application that entitles users to compare the financial services of significant insurance companies. The company is one of the largest insurance aggregators in India and has expanded into the United Arab Emirates.
Another aspect that made PolicyBazaar the giant it is now in its marketing efforts. As the world connects, marketing changes, and when you are interested in learning about the latest – check out our Free MasterClass on Digital Marketing 101 from IIDE CEO and Founder Karan Shah.
Do you want to learn how PolicyBazaar became so successful in the financial technology industry? In this blog, we will learn about the SWOT Analysis of PolicyBazaar and decode the answer.
But, before we begin with the SWOT Analysis of PolicyBazaar, let us learn more about PolicyBazaar the company, founding, products, financial status, and competitors.
Founded in the year 2008 by Yashish Dahiya, Alok Bansal and Avaneesh Nirjar, PolicyBazaar was first started as a price comparison website and a knowledge platform for learning about insurance and insurance programs. Lately, it expanded to become a marketplace for one of the most valuable insurance policies bazaar in the world
They envisioned a place where consumers can find completely transparent insurance information and have the opportunity to research and compare insurance products so they can buy what they want.
With this great ambition as a life goal, this diverse team began their journey to what is now Policybazaar.com. Even today, the goal is customer first and sustained profitability for the entire insurance ecosystem.
Recently, PolicyBazaar shares were up almost 23% over the issue price, making the company jump three times greater in the private markets.
Quick Stats About PolicyBazaar
|Founder||Yashish Dahiya, Alok Bansal & Avaneesh Nirjar|
|No. of Employees||13,000|
|Market Cap||Rs 52,070.33 crore (2021)|
|Annual Revenue||$120.8 Million (2020)|
|Net Income/ Profit||Rs 957 crore (2021)|
Products of PolicyBazaar
PolicyBazaar has evolved from a policy comparison website to an insurance sales operation. Its products include:
- Life insurance
- Health insurance
- Auto insurance
- Travel insurance
- Group plans
Close Competitors of PolicyBazaar
- Easy policy
- Greenlife Insurance
Now that we understand the company’s core business, let’s delve into the SWOT analysis of PolicyBazaar.
SWOT Analysis of PolicyBazaar
(Source: Google Images)
A SWOT analysis determines the strengths, weaknesses, opportunities, and threats of a company. It is a proven management paradigm that allows PolicyBazaar to benchmark its business and performance against that of its competitors and the industry as a whole.
This is a great tool for identifying where the business is doing well, where it is failing, developing countermeasures, and determining how the business can grow.
From the SWOT analysis of PolicyBazaar, let us first start by expanding on the strengths of PolicyBazaar.
Strengths of PolicyBazaar
The unique skills of a company that gives it an edge in gaining more market share, attracting more customers, and maximizing profits are known as its strengths. The following are PolicyBazaar’s strengths:
- True Innovation: Policy bazaar has been capable of doing this for quite a decade now. Technology must help identify and meet several specific insurance needs, and not just for the internet business. This would ensure that insurers design websites that are easy to use and ensure that transactions go smoothly.
- Various Services: A customer portal in PolicyBazaar offer various services to customers who can save time and even buy policies online. Customers can now calculate premium, bonus amount, tax calculation, check the status of their policy, calculate loan amount, download form and pay premium online.
- Brand Reputation: The company has built a strong brand reputation that offers a wide variety, transparency, and convenience to its customers. So, if you also want to build & promote a positive brand image, enrol in our online reputation management course to become an expert in it.
- Financial Position: PolicyBazaar high renewal rates provide a clear view of future business and offer excellent profitability. It uses a capital-efficient model with low operating costs.
Weaknesses of PolicyBazaar
Weaknesses are aspects of a company or brand that need to be improved. The main defects of PolicyBazaar are as followed:
- Diversity of Employees: At PolicyBazaar, the workforce is dominated by locals, with few workers from other ethnic groups. Lack of diversity makes it difficult for employees of different ethnic backgrounds to adapt to the workplace, leading to a loss of talent.
- Often Slow to Respond to Changing Needs: A lot of customers nowadays doubt their policies & insurances and PolicyBazaar has been unable to serve them on time.
- Low Current Ratio: The company’s current metric, which measures its ability to meet short-term financial commitments, is below the industry average. This could mean that the company will face liquidity problems in the future.
- Privacy issues: A lot of customers nowadays have privacy issues regarding whether to invest in such policies or not so this can be one of the weaknesses that PolicyBazaar could face.
Opportunities for PolicyBazaar
Opportunities are potential focus areas for a business to improve the bottom line, increase revenue, and ultimately profit.
- Social Media: Huge organisations are leveraging such tools to stay relevant and are seeking specialists for the same, so if you are interested in the field, check out our social media marketing course to get started.
- Technological Advancement: Technology provides numerous benefits in a variety of fields. Costs can be saved by automating operations. Technology allows for the better data collection on customers and improves marketing efforts.
- Lower Cost: Policybazaar shifted to digital distribution as the market changed and competition increased. These changes have resulted in a significant decrease in the average cost of distribution services.
Threats of PolicyBazaar
Threats are environmental factors that can affect the growth of a business. Below are some of the threats for PolicyBazaar:
- Competition: Competition in the industry has increased, which is putting pressure on prices. If the policy market does not adapt to price changes, it may lose market share.
- Government Regulation: Government regulations on topics like health care, mould, and terrorism can quickly change the direction of insurance. Rising expenses and shrinking profit margins will hit smaller agencies and insurance companies hard.
- New Comers: Several new players have entered the market and are gaining market share by taking market share from existing companies. PolicyBazaar is at risk because these new entrants could steal its customers.
This ends our detailed SWOT analysis of PolicyBazaar. Let us conclude our learnings below.
PolicyBazaar tries and tests all possible methods to provide its users with a pleasant and stress-free experience. All efforts are paying off as PolicyBazaar is expanding its user base across India.
To enable this rapid growth, they must ensure that more and more people buy insurance online. The only way to achieve this is to better serve customers to support the company’s growth.
With increasing competition in a saturated market like fintech, companies must fight back by winning over their customers through better marketing efforts. In a changing landscape where digital marketing is paramount, knowledge of the field is a must for all marketing enthusiasts. If you are interested in learning more and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
If you like such in-depth analysis of companies just like the SWOT analysis of PolicyBazaar, find more such insightful case studies on our IIDE Knowledge portal.
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