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After the resignation of Coverfox’s CEO and CTO in early 2020, Sanjib Jha, CEO of Coverfox claims to have reduced the company’s monthly net burn by half from April 2020 to March 2021.
Jha attributed this shift to the company’s increased focus on digital automation. Coverfox started off as a pure call centre selling insurance products assisting the customers to purchase the insurance products. But today, it has pivoted from a call centre heavy burn model to an e-commerce model which is said to have brought over 6x efficiency to the company’s operations.
“We have implemented strategies like a lead scoring system using data analytics to optimise the performance of our call centre and shift to a fully digital journey along with the launch of our B2C mobile application. The use of data and advanced analytics has helped to create a bridge between the behavioural characteristics of customers and their spending habits in insurance buying products, providing a true fodder for machine learning models,” Jha told BusinessLine .
The company’s new B2C app currently has 100K installs and has contributed to an upwards of 1 crore of business in the four months of its launch. He added that, for decades, insurance has been sold as a push product by agents in India. There has been less product knowledge, no transparency, and no proper claim management system.
To address this, Coverfox increased effort on the product side to move to a fully digital sales model which minimises call centre effort. Be it chatbots, Artificial Intelligence (AI) based voice bots, Machine Learning based document scanning, end to end digital flows, lead scoring etc.
Coverfox.com currently has over 3 million monthly visits and plans to expand its catalogue soon to serve a broader audience in need of digital insurance products, particularly bite-sized ones. The company’s services include motor vehicles (both personal and commercial vehicles such as taxi and GCV), health, term life, as focused insurance products.
Revenue and profit
Commenting on the company’s revenue number and profitability, Jha said “We are in structural space and can state that the company is on sound footing now and has achieved gross margin profitability on retail product lines - motor, health and term insurance products.
We have been able to maintain positive gross margins since January 2021, owing to our continuous efforts in optimizing the operations and becoming a customer-focused insurtech.”
Coverfox used to be a prominent player in the insurtech space and had raised capital from marquee investors such as Narayana Murthy’s Catamaran Ventures, SAIF partners, and Accel among others. Coverfox’s direct competitor, PolicyBazaar has recently got the SEBI’s approval for a ₹6,017 Cr IPO and may raise around ₹750 crore through a private placement of equity shares.
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