I read your recent post on Policy Bazaar.
Can you, if possible, please elaborate further your thought process on my below verbose.
- Why is Government entering the domain which is more suited for private players? I mean, it can regulate the charges or commissions, frame policies but directly build a platform is a bit stretching. At one end, it is looking to privatize PSUs saying business is not its domain while Governance & regulation is. Is the success of UPI behind this, you think? ONDC is also a case in point of overreach I think.
Particularly when these platforms involve customer service, fraud detection, push products, rewards, returns (ONDC), delivery, seller vetting etc.
If the Bima Sugam’s intention is not any of these then it may not be of much direct competition to aggregators like PB.
When insurance is a push product, agents would not be interested in sales when the commission drops by a 80% overnight. Then it is defeating the purpose of increased insurance penetration by leaps & bounds as is what IRDAI saying publicly. People won’t line up to buy a product just because the commission is lower now.
Coming specific to PB, below 400 the valuations are lucrative for 18% CAGR unless the Bima Sugam overdrives & destroys with unmindful regulations. So, I bought it again around 385. It broke-even decidedly & at the current growth rates operating leverage should catch up definitely. With recurring premium of 285 crores at 80% minimum contribution margin, the numbers are clear.
Looking at Delhivery’s price action coming week. At some price of irrational selling, it makes a buying case. I’m monitoring.
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