Tech-enabled insurance broking firm SecureNow, mainly focussed on providing commercial insurances to small and medium enterprises (SMEs), targets to scale up its clientele base to 50,000 by the end of this fiscal and further to 10 lakh in the next three years, the company's co-founder said.
Being a decade-old company, SecureNow sees a big opportunity in selling insurance to small businesses. It is a huge market and small businesses are underinsured compared to others in the country, the official said.
''Selling insurance to SMEs in the traditional way is too expensive. So we have created a digital platform over the last 4-5 years where buyers can look at various options and see what is suitable to their requirements. We are now hitting over 30,000 (SME) clients.
''This fiscal, we will finish with close to 50,000 clients. There are about 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 a million (10 lakh) small businesses in the next three years,'' Kapil Mehta, Cofounder, SecureNow told PTI in an interaction.
Mehta said SecureNow is adding 1,500 new clients every quarter and it has reached the 30,000 mark across 150 locations in the country in a very profitable manner in terms of gross margin in the insurance business.
''Apart from catering to the SMEs, a very big part of our business is insuring doctors for their work. All doctors need to buy a professional indemnity which is liability insurance. For example, if doctors are sued or any such issue arises then there is litigation which typically is insured,'' the official said.
He said the company is covering nearly 5,000 doctors and handling about 70 litigation cases.
Mehta said in its all digital model business, around 15 per cent of the transaction of SecureNow happens without any assistance from the company, while the balance 85 per cent requires assistance through phone calls or through emails. SecureNow has onboarded around 15-20 general insurers on its platform.
He said the company is all set to turn profitable in the next one-and-a-half years.
''On the measures of profitability, one is gross margin business, the way we distribute the policies. That way we have a 50 per cent gross margin, which is very attractive.
''And overall, if you look at the company level, the net profitability after accounting all the expenses, in the next 12-18 months we are going to turn profitable,'' Mehta said further.
Besides, SecureNow is also mulling to raise funds, he said, without providing further details. Insurance premium on Secure Now platform stood at Rs 120 crore in the last fiscal year.
The company's main promoters are Elevar Equity, Apis Partners and Charan Singh, founder of SelectQuote -- a US based insurance comparing portal.
