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Technology / Online Insurance Tech - PolicyX.com

« Last post by wiredlife on September 29, 2021, 10:07:02 AM »

Insurance industry has been a late participant of technology adoption from distribution perspective compared to other ecommerce platforms. However, in last few years witnessing a big thrust from both insurance and distributor side. In last few years people have become more aware about insurance and now engaging and evaluating products on their own and this is changing dynamics from push to pull. Further more and more insurers are now offering digital products, technological capabilities of Insurers have also improved over the years.

Conversion rate in Online Insurance Portals of India
While increasingly number of consumers are comparing products online, conversion rates are still very small compared other developed markets. In health insurance conversion rate is around 5% but this has almost doubled over last 2/3 years. Going forward expect more business will be done through D2C over next 10-15 either through web aggregators and Directly through Insurers. Web aggregators will have an edge as there consumers can compare price across all insurers.

Web aggregators are source of cleanest and high-quality business, it is evident from the fact that claim ratio for business sourced from web aggregators are very low compared to traditional channel. This is because of 1) lower fraud rates and 2) Insurers are able to collect high amount of data hence better underwriting and 3) Access to customers with higher income and education level

In terms of technology other insurers are not behind digital players such as Acko or Go Digit. Players like ICICILOMBARD and HDFCERGO are doing better job in term of technology adoption and have mindset like these digital players.

Insurance broker and Web aggregator are largely same except for two broad difference 1) Web aggregator cannot renewal commission and 2) Web aggregator cannot enter POS model. Broking license makes sense for players who would want to enter POS model in a big way. Offline model is very different compared to online where consumer behavior and cost of acquisition is very different. It’s a very cost heavy model and less lucrative compared to online market. However once certain size has been achieved in online channel then next step is to go to next available market like offline.

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5G / Wi-Fi / CPaaS - 15% Growth

« Last post by wiredlife on September 29, 2021, 08:54:24 AM »

Tanla's cloud-based platforms provide ease of connectivity to enterprises and aggregators with a plug-and-play approach. Tanla recently expanded the bouquet of services by acquiring Karix, the market leader in the Indian Communications Platform as a Service (CPaaS) space and Gamooga, a marketing automation company, in FY20. It also recently launched Trubloq, a blockchain based solution to filter spam SMSs. Trubloq processes 62% of India’s SMS traffic.

Tanla sees the existing Indian CPaaS market growing by 15% annually and the entry of new-age companies in ad-tech, ed-tech, fintech and gaming will add to market growth by more than 5%. The multiple use-cases of Trubloq and the above opportunities in conversational platforms and OTT channels would further expand the addressable market. The international opportunity will be in addition to these.

Tanla has been working on driving partnerships and expects to announce two significant partnerships soon. The company also sees sizeable opportunities in conversational platforms and OTT channels, and one of the above-mentioned partnerships would focus on these areas. Though we await more clarity, we believe these could add an extra leg to growth.

13

Smart Connected Devices / Connected Home Over IP

« Last post by wiredlife on September 19, 2021, 04:32:23 PM »

Due to the lack of unified Smart Home standards slows growth. Competing standards such as Bluetooth, Zigbee, Z-Wave, and Wi-Fi
complicate interoperability among devices. However, devices in a smart home are seldom used separately. Customers do not want to switch devices and technologies when controlling, e.g., their home entertainment or security systems. Given this, Apple, Amazon, Google, and the Zigbee Alliance formed a working group in 2019 called "Connected Home over IP" to create an industry standard for smart home connectivity.

The future of the Smart Home will be an integrated platform solution with a universal communication standard interlinking all smart devices.

The connection of all Smart Home devices, more sophisticated AI-driven services and the gathering of a gigantic amount of data presents a challenge for Smart Home development. In this respect, the implementation of 5G is vital. Sharing the data of homeowners with businesses will foster the growth of new individualized technologies and services in the market.

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Cable / DSL Services / Online Advertising to Reach $500 Billion in 2025

« Last post by wiredlife on September 18, 2021, 07:35:59 PM »

Global spending on Digital Advertising outpaced TV ad spending for the first time in 2017. Considering how great a role television used to play for generations of media consumers, this is quite a revolutionary development. And it shows how important Digital Advertising has
become.

The Big Demand for Ads - Search Advertising, Social Media Advertising, and Online Classifieds are categorized with in-page ads as Banner Ads, and in-stream ads – be it videos or text overlays – are part of Video Advertising.

Google the Global Leader commands a major share of the 45% Online Advertising Market in Search Advertising with a volume of US$159 billion in 2020. The global Social Media Advertising market size is about US$99 billion in 2020.

Although we can observe an advancement in the field of targeting solutions, Banner and Video Advertising still face the challenge of
reaching the right audiences. They have a much more random advertising environment than social networks and search engines.  With a volume of US$53 billion, Banner Advertising has a share of only 15% of the total Digital Advertising market. Video
Advertising has an even smaller share of 8%, corresponding to a market volume of US$27 billion.

Online Classifieds make the smallest contribution to overall market revenues with US$19 billion in 2020.

Together, in 2025 it is estimated that the following verticals will have a share of USD 500 Billion as under,
Search Advertising - 203 B
Social Media Advertising - 135 B
Banner Advertising - 73 B
Video Advertising - 50 B
Classifieds - 25 B

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4G / LTE / JioPhone Next - Android SmartPhone Strategy of Mukesh Ambani

« Last post by wiredlife on September 18, 2021, 07:23:44 PM »

The upcoming launch of JioPhone Next seems to worry Airtel investors – is it the beginning of a new price war?

Targeting the US$50 smartphone segment is neither here (average Android phone ASP US$165), nor there (average feature phone ASP US$18). Android volumes at US$50 are thin.

We have seen the smartphone premiumization trend in many emerging markets, India included. As such, we think that JioPhone Next probably targets the feature phone upgraders with an affordable 1st experience device.

Jio also has a problem to solve: the 132m installed base of JioPhones is now 2.5 years old on average and due for replacement. Contracts are expiring and JioPhone users free to move to another carrier. It is quite possible that JioPhone Next is the replacement device of JioPhone. Concurrently, Jio is also targeting premium 4G segments at Rs499 and we should not conclude that Jio’s strategy is only a race to the bottom.

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Web 2.0 / How eCommerce will Transtion Now ?

« Last post by wiredlife on September 18, 2021, 04:32:03 PM »

The growth of cross-border eCommerce is a hot topic in the Western markets, especially within the EU free trade zone. Geographic proximity and logistics make it possible for sellers to offer attractive shipping times and convenient returns to not only local buyers but to the entire EU population.

eCommerce marketplaces continue to gain momentum. Marketplaces such as eBay and Amazon have a firm grip on the market as they have long become primary product search engines. They enjoy a significant amount of repeat customers, who come back for best prices,
transparent quality, and easy returns. We expect marketplaces to become the primary shopping destination for almost all product
categories. The exception will be context-rich categories such as luxury goods, interior design, and fashion, where stand-alone shops will have their share of the market.

Mobile eCommerce is now the fastest-growing segment as customers enjoy shopping on the go and increasingly browse shops and place orders on their smartphones or tablets. Its scope is not limited to creating mobile-friendly shop interfaces or separate shopping apps. Rather, its major potential lies in AI applications, augmented reality, voice eCommerce, and customer profiling.

Both online-only players and traditional retailers are developing various multi-/cross-channel strategies to reduce inconvenience and increase customer satisfaction throughout the customer journey. Package delivery boxes and precise delivery times for working people, drone deliveries of time-sensitive products such as medicines as well as same day- delivery services are only a few of many ambitious innovations and optimizations in the area of product and service delivery.

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Web 2.0 / China World's Largest eCommerce Market

« Last post by wiredlife on September 18, 2021, 04:28:44 PM »

In 2020, the global eCommerce market was worth US$2.4 trillion. China was the biggest eCommerce market globally, with Gross Merchandise Sales of Whopping  US $1,116 billion. China's eCommerce market growth is fueled by both the increasing purchasing power of the local population and crossborder eCommerce. With revenues of US$411 billion in 2020, the U.S. constitutes the second biggest eCommerce market, followed by Japan with US$105 billion.

Chinese key market players such as Alibaba Group, JD, and Tencent jointly contribute to the comprehensive eCommerce ecosystem in China – and are increasingly penetrating other promising Asian markets such as Indonesia and India. The Chinese population is tech savvy and mobile first, and Chinese eCommerce giants are therefore constantly pushing technology forward. They have diversified into literally every sphere that comes in touch with online retail, from payments to logistics. Current developments in China will - to a large extent – define the next decade's global eCommerce

Many players from both online and offline retail are moving to multi-channel strategies and are continuously reinventing the way we shop online. Expectations are growing rapidly as customers discover more convenience on all levels – be it product customization, mobile-optimized search, quick checkout processes, and/or hassle-free delivery

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Technology / Explaining relationship between delivery partners and Zomato

« Last post by wiredlife on September 08, 2021, 08:18:52 PM »

Food delivery is highly complex as food is a perishable commodity, and requires careful handling while maintaining high levels of hygiene and real-time on-demand service. Zomato has invested in building technological and operational capabilities for real-time, demand  forecasting, fleet optimization, estimation of order preparation and food delivery time, and intelligent dispatch technology, enabling optimized matching of orders and delivery partners. Zomato's delivery network accounted for fulfillment of ~95% of orders received on the platform and the rest were delivered by the restaurant partners themselves in FY2021.

Nearly 95% of Zomato’s headcount is hired directly by it (via its small regional offices where riders can walk-in and get employed) and the remainder belongs to hyperlocal delivery companies such as Shadowfax. Zomato sources agents on its own as it doesn’t find the scale it needs in most cities with other logistics companies.

Per the company, it also maintains medical insurance for hospitalization and accident insurance for delivery partners.

How Zomato Does Earnings Management of Delivery Boys ?
Delivery staff is paid on a per order basis (pay is completely variable for delivery agents), and Zomato ultimately tries to control the overall money a delivery agent makes on an hourly basis such that benefits of higher productivity will be retained by the company.

Delivery cost can vary substantially between Tier-I and Tier-II cities as wage expectations of an agent can be very different. For instance, in a Tier 1 city, if a delivery agent devotes 8 hours a day to Zomato for 24 days a month, they would want to make Rs19,000.

The Social Security Code of India
the concept of workers outside traditional employer-employee work-arrangements (including in online and digital platforms such as Zomato), such as "gig workers" and "platform workers" and provides for the mandatory registration of such workers in order to enable them to avail benefits of life and disability cover, health and maternity benefits, old age protection etc.

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SmartPhones & Apps / Subscription Services of Food Delivery Apps

« Last post by wiredlife on September 06, 2021, 04:20:39 PM »

Food Delivery Apps indicated that subscription programs are improving consumer retention; driving higher ordering frequencies and helping in expansion of non-food categories. Food-techs therefore continue to push subscriptions despite an impact on revenue per order. Consumers are also increasingly joining these programs due to bundled benefits such as better value proposition, wider selection and quality options. In India, Zomato recently launched Zomato Pro Plus subscription program (presently an invite-only program) that promises unlimited free deliveries to its members (refer media report), while also retaining all the existing benefits of Zomato Pro subscription program. Swiggy too runs its own subscription program called Swiggy Super that offers free deliveries and incremental incentives.

Swiggy too saw strong growth momentum in Jun’21 with daily order volumes growing 2.5x on a YoY basis (~1.5mn orders per day in Jun’21). We expect near-term tailwinds such as reopening of corporate offices and upcoming sports events (such as IPL and T20 World
Cup) to continue to drive strong order volume growth for the industry.

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5G / Wi-Fi / How do you define 5G ?

« Last post by wiredlife on September 04, 2021, 02:10:49 PM »

5G is next generation wireless broadband access technology, which promises higher data capacity, high data speed (>10Gbps peak , 100 Mbps everywhere), low latency (<1ms), high reliability and low power consumption vs. 4G. 5G is expected to offer better economics as it can potentially reduce data costs per GB to almost 1/10th of 4G.

5G capabilities could open up opportunities for new use cases like autonomous cars, wireless broadband/fixed wireless, and IoT machine to machine communication, which could find applications in various industries like health care, education, and mining as well as be an incremental revenue stream for telco and non-telco over the next few years.