Hyderabad: New age insurance broking firm Coverfox has plans to set up a new centre in Hyderabad in about six months. It will look to employ about 100 technology support personnel and about 400 in the marketing department, according to Premanshu Singh, its Chief Executive Officer .
It also has plans to appoint more brokers for Telangana in addition to the 5,000 already operating in the State, he said.
Acknowledging the importance of regional languages in growing, the company will consider bringing its insurance lead generation platform in Telugu as well, he said.
“Hyderabad is a key market. Telangana is among the top ten markets for us. We are now working to build regional skills that will help deepen our presence here,” he said.
Hyderabad now accounts for about eight to ten per cent of the total premium of about Rs 700 crore it collects a year, he said. The city accounts for about ten per cent of the total agent base of 50,000. “Hyderabad behaves like a metro market. The market for us is growing between 27-30 per cent. This is double the national average of about 15 per cent,” he said adding that vehicle and health insurance top the volume charts.
“Pan India the percentage of men buying insurance from Coverfox is 80-85 per cent and women is 15-20%. In Telangana, men buying insurance account for 75 and women comparatively higher at 25 per cent,” he said about Telangana market. It is selling about one lakh policies a month in the country and about 8,000 to 10,000 come from the State, he said.
This indicates more women in Telangana are independent, take financial decisions and also drive a vehicle. “If we look at the two-wheeler insurance market specifically, the number of women users on Coverfox goes up to around 35 per cent in Telangana,” he said adding that the State ranks eight for it in terms of number of policies sold. The State also has the highest conversion rates for traffic to sale on Coverfox, he said.
In terms of ticket size, Telangana buys a cover that is 34 per cent higher than the average ticket size. This is just behind Chennai, which is 38 per cent above the average ticket size. “This is mainly due to high awareness about insurance, their overall earning power and the need to have an apt cover,” the official said.
It is now building a machine learning aided platform that will aid in quicker claims. The app, which will have video tool, that will calculate the damages. The company will negotiate with the insurance policy holders and deposit the same into users’ account. “In many cases, damages to vehicles will be exterior. There is no problem with vehicle movement and safety. The users also may not be looking to get it repaired. In such cases, we pay the agreed amount to the users,” Singh explained. Coverfox has a licence to act as an official intermediary for a customer to make claims. Users need not contact the policy issuing company.
Coverfox is run by Glitterbug Technologies, a technology company that has received Series A, B and C funding from global funds such as SAIF Partners, Accel, Narayana Murthy’s Catamaran Ventures, IFC and Transamerica.