Online insurance platform for automobiles RenewBuy has raised Rs 60 crore from Bangalore-based mid-market growth capital fund Amicus Capital. The company will use the funding money to grow aggressively by expanding into new geographies, and adding new product segments like health, accident and term life, it said in a statement.
Founded in July 2105, by Balachander Sekhar, Indraneel Chatterjee and Sandeep Nanda, RenewBuy claims to be a motor Insurance specialist company which aims to solve problem of vehicle insurance renewal via online platform. The company says on its website that their platform enables consumers to find lowest quotes from insurers and save up to 60% on their renewal premium. The company claims to have an insurance booking license from Insurance Regulatory and Development Authority and tie-ups with multiple insurers including HDFC ERGO, IFFCO Tokio, Bajaj Allianz, Bharti AXA, and Reliance General. The company claims to have exceeded INR 100 Cr of annualized insurance premium with 2,50,000 consumers since its launch.
Earlier, RenewBuy had raised angel funding of Rs 3.3 crore in angel funding led from Mount Nathan Advisors in November 2015.
Online insurance space for automobiles
In April this year, CarDekho’s parent Girnar Soft received a licence from the Insurance Regulatory and Development Authority (IRDA) to launch an auto insurance vertical. The vertical named as ‘Girnar Insurance Brokers’ will provide insurance buying, locate cashless services garages, settle claims and offer documentation to car owners.
Meanehile, Times Internet launched ETinsure.com , an online insurance platform, in February this year. The platform offers car and two-wheeler insurance from partner companies, along with health insurance and term insurance etc.
In June, Online insurance company Coverfox raised $15 million (about Rs 96 crore) in a Series C round of funding from US-based insurer Transamerica, with participation from existing investors. Coverfox provides a platform for users to search, compare, buy and manage insurance, including car insurance, bike insurance, health insurance, travel insurance and term life insurance.
No point in starting an Insurance Web Aggregator in India
In June 2016, we pointed out that India’s insurance regulator IRDA has regressive draft guidelines (download), the IRDA is defining terms of contracts between Web Insurance Aggregators, which should only be viewed as marketing and comparison firms, defining the content that should be made available on their websites, disallowing advertising on these sites, and even determining the terms as per which leads should be transferred between a web insurance aggregator and an insurance company.
The IRDA also limits business model, as according to the guidelines, the Web Aggregator
-shall not have a referral arrangement with an Insurer.
-No charges shall be paid for transmission of leads by the Insurance Web-Aggregator to the Insurer.
-Leads which are converted into the sale of insurance policies will entitle the Insurance Web-Aggregator to earn remuneration as applicable to insurance intermediaries.
-No insurer shall pay and no Insurance Web-Aggregator shall receive any signing fee or any other charges by whatever name called, except those permitted by the Authority under relevant regulations, for becoming its Insurance Web-Aggregator.
-A web insurance aggregator cannot display other products or services (financial, FMCG or anything else) on their website.
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Note: The story has been updates, as we received a statement from the company.