As internet penetration grows in India and a young generation of working professionals becomes increasingly comfortable to use the online platform to purchase products and services—from books, banking, payment of bills to buying insurance. The insurance sector is very much a part of this ecommerce growth story with the online insurance space fast gaining momentum.
According to a report by Boston Consulting Group and Google India, three in every four insurance policies sold by 2020 would be influenced by digital channels at either pre-purchase stage, purchase or renewal stages. And insurance sales from online channels will touch INR 15,000 Cr by 2020, with overall Internet influenced sales at INR 300,000-400,000 Cr.
Serving in the same domain with an aim to make the process of buying and managing online insurance easier, simple and transparent, this Mumbai-based startup, CoverFox has just got funded.
The startup has raised $12 Mn from venture capital funds Accel US, Accel India and SAIF Partners in its second round of funding. CoverFox, which represents the new crop of financial tech ventures, uses algorithms to help consumers select insurance products.
The fresh funding will be utilized for further enhancing its technology platform, brand building through mass media advertising, bringing on board new insurance products, and scaling up its customer assistance unit.
Glibberbug Technologies, which runs Coverfox.com, Founded in 2011 by IIT-Bombay alumnus Devendra Rane and Varun Dua, as a venture which used to build technology for insurance firms. After two years, the duo pivoted and started selling insurance online under the brand name Coverfox.