written by
Renjit Philip

Lessons from speaking to Sarbvir Singh, Group CEO of PB Fintech (PolicyBazaar and PaisaBazaar)

Leadership Insurtech Business Model India 5 min read , July 27, 2024
Sarbvr Singh, FS Brew Podcast, renjitphilip.com
Sarbvir Singh on our episode artwork

1. Leadership Philosophy:

Sarbvir Singh emphasizes a collaborative leadership style that focuses on isolating key variables and maintaining consistent communication. He stresses the importance of:

a) Focusing on 2-3 key priorities each year and communicating them consistently.

b) Avoid micromanagement and empower team members to execute their responsibilities.

c) Building trust with colleagues and fostering an ownership mindset across the organization.

d) Balancing the needs of three key stakeholders: customers, employees, and insurance partners.

Key Learning: Good leaders do these things:

  1. Pick what's most important for the company
  2. Keep telling everyone about these important things
  3. Trust their team and give them power to make decisions

This way of leading helps keep everyone focused on what matters. It also lets the company be quick and come up with new ideas.

2. Transition from Investor to Operator:

Singh's background in venture capital and investing has significantly influenced his approach to running PolicyBazaar:

a) He applies an outsider's perspective to business operations, which helps in strategic decision-making.

b) His investor mindset aids in isolating key variables and focusing on what truly matters for the business.

c) He recognizes the longer timelines required for executing changes in an operational role compared to an investor role.

Key Learning: Being an investor before can help when running a company:

- Running a business takes more time than investing

- You have to deal with everyday problems, not just big ideas

3. Balancing Growth and Profitability:

Singh discusses the challenges of managing growth and profitability, especially as a publicly listed company:

a) He emphasizes the importance of maintaining a long-term perspective rather than reacting to short-term market pressures.

b) PolicyBazaar focuses on unit economics and contribution margins to ensure sustainable growth.

c) The company navigated through regulatory changes and one-time charges while maintaining its growth trajectory.

Key Learning: To grow in a healthy way:

1. Make sure you're making money on each sale (unit economics)

2. Think about what's good for the company in the long run

3. Don't just focus on quick wins

It's important to:

- Tell everyone why you're doing this, especially if your company is listed on the stock market

- Explain your plan to people who watch how well your company is doing

4. PolicyBazaar leverages AI and data science in several key areas:

a) Improving sales productivity through AI-powered call summaries and customer insights.

b) Enhancing risk assessment in insurance underwriting.

c) Automating video inspections for policies.

d) Focusing on solving specific business problems rather than implementing technology for its own sake.

Key Learning: Using new technology well means:

1. Only use new tech to solve real business problems

2. Focus on making important things better, like:

- Getting more work done

- Understanding risks better

- Making customers happier

Don't just use new tech because it's cool or new. Make sure it helps your business in a real way.

5. Customer-Centric Approach:

Singh emphasizes the company's shift from a transaction-focused model to building long-term trust with customers:

a) Ensuring that products offered are beneficial for customers and transparently explained.

b) Focusing on customer experience throughout the journey, from purchase to claims.

c) Recognizing the evolving expectations of Indian consumers and adapting services accordingly.

Key Learning: For an insurance company to grow and last:

1. It's really important to make customers trust you for a long time

2. To do this, you need to think about the whole customer journey:

- Make good products that customers actually need

- Explain things clearly when selling

- Help customers quickly if they have problems later

Happy customers who trust you are more likely to stay with you and tell others about you.

6. Regulatory Environment:

Singh provides insights on navigating India's evolving insurance regulatory landscape:

a) He views regulatory changes as opportunities for growth and innovation.

b) The company adapted to new regulations by expanding into new business areas (corporate and agent aggregation).

c) He emphasizes the importance of patience in seeing the impact of regulatory changes.

Key Learning: When rules change in your industry:

1. It can be a good thing if you're ready for it

2. Companies that can change quickly might find new ways to grow

To do well when rules change:

- Try to get along with the people who make the rules (IRDA in India)

- Think about how things might work out in the long run, not just right away

This is really important in businesses where there are lots of rules and regulations, like insurance or banking.

7. Scaling Challenges:

PolicyBazaar's approach to reaching smaller towns and villages in India includes:

a) Developing a robust POSP (Point of Salesperson) model with nearly 200,000 agents.

b) Providing these agents with access to a variety of products, training, and the PolicyBazaar brand.

c) Recognizing the continued importance of physical distribution channels alongside digital platforms.

Key Learning: To grow big in a country like India:

1. You need to use different ways to reach people

2. Mix new online methods with old-school ways of selling

3. Change your approach based on what works in different areas

In big, diverse countries, one size doesn't fit all. Be ready to change your plans to fit different areas.

8. Organizational Culture:

Singh emphasizes building a culture of ownership and accountability:

a) Encouraging employees to think like owners rather than just employees.

b) Focusing on guidelines and principles rather than rigid rules.

c) Empowering employees with information and decision-making authority.

Key Learning: Creating a good company culture means:

1. Helping employees feel like they own part of the company

2. Making sure everyone takes responsibility for their work

When people care about the company like it's their own, they work harder to make it better.

9. Metrics Beyond Financials:

PolicyBazaar focuses on several leading indicators beyond financial metrics:

a) Customer satisfaction and experience metrics.

b) Employee satisfaction and empowerment.

c) Insurance partner relationships and satisfaction.

Key Learning: A healthy business isn't just about money right now. It's also about making sure everyone involved is happy, which can lead to more success in the future.

10. Handling Career Setbacks:

Singh offers advice on dealing with career challenges:

a) Focus on the present and continue doing your job to the best of your ability.

b) Maintain the perspective that both good and bad times will pass.

c) Keep moving forward and don't disengage during difficult periods.

Key Learning:

Careers have ups and downs. Staying steady and working hard through both good and bad times helps you succeed in the long run.

If you do want to listen to Sarbvir in his own voice, listen to the episode on www.fsbrew.co>> link


Leadership India Insurtech