SecureNow will integrate nearly 50,000 small businesses by the end of March; 10 lakh in the next three years
The technology-based insurance brokerage SecureNow, primarily focused on providing commercial insurance to small and medium-sized enterprises (SMEs), aims to grow its customer base to 50,000 by the end of this fiscal year and 10 lakh over the next three years, the company co-founder said.
Being a ten year old company, SecureNow sees a great opportunity in selling insurance to small businesses. It’s a huge market and small businesses are underinsured relative to others in the country, the official said.
Selling insurance to SMEs in the traditional way is too expensive. So we’ve created a digital platform over the past 4-5 years where buyers can look at various options and see what suits their needs. We now reach over 30,000 clients (SMEs).
âThis exercise, we will end with nearly 50,000 customers. There are approximately 60 million (6 crore) businesses in the country registered as SMEs. And about 5-6 million (50-60 lakh) have some kind of insurance. For us, the milestone is to reach up to one million (10 lakh) small businesses over the next three years, âsaid Kapil Mehta, co-founder of SecureNow. PTI in an interaction.
Mehta said SecureNow adds 1,500 new customers every quarter and has hit the 30,000 mark at 150 locations nationwide very cost effectively in terms of gross margin in the insurance industry.
” Beyond catering to SMEs, a very large part of our activity consists of insuring doctors for their work. All physicians must take out professional liability insurance. For example, if doctors are sued or something like that arises, then there is litigation that is usually insured, ” the official said.
He said the company covers nearly 5,000 doctors and handles around 70 disputes.
Mehta said that in its all-digital business, around 15% of SecureNow’s transactions go through without any support from the company, while the rest, 85%, require support by phone or email. SecureNow has integrated around 15 to 20 general insurers on its platform.
He said the company was poised to become profitable within the next one and a half years.
On the measures of profitability, one is the gross margin of the business, the way we distribute the policies. We thus have a gross margin of 50%, which is very interesting.
âAnd overall, if you look at the corporate level, the net profitability after you have counted all the expenses, in the next 12 to 18 months we’re going to become profitable,â Mehta added.
In addition, SecureNow is also considering raising funds, he said, without providing further details. The insurance premium on the Secure Now platform stood at Rs 120 crore in the last fiscal year.
The main promoters of the company are Elevar Equity, Apis Partners and Charan Singh, founder of SelectQuote, an American insurance comparison portal.
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Posted on: Sunday December 19th, 2021 6:35 PM IST