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Prakash Shah

Director at Shreyash Insurance Brokers
by Surendra Sharma - Apr 21, 2020
Prakash Shah, Interview, KonexioNetwork.com

Prakash Shah is a Graduate from Mumbai University and today is a familiar name in the Insurance Industry. He has been closely associated with majority of the General Insurance Companies. Despite being a successful entrepreneur, he is very humble and a down to earth person.

It was in the year 2004 when he decided to quit his Stationary Business and ventured into the General Insurance business. With almost 16 years of experience, he has expertize in Retail segment with Telesales & POSP.  He successful ran insurance ventures which were highly appreciated by insurance companies, clients and partners. In the year 2019 he joined Shreyash Insurance Brokers Private Ltd as Director with an aim to take the venture to new heights. Shreyash Insurance Brokers Pvt Ltd is a leader in fleet & Infrastructure Insurance. 
Further find below excerpts of our conversation with him with regards to growth and new developments of his venture Shreyash Insurance Brokers Pvt Ltd (SIBPL)  

Share few words about Shreyash Insurance Brokers Pvt Ltd

SIBPL was established by Ashish Bansal  (founder member of SIBPL with decades of experience in insurance broking) in the year 2002 with corporate office in Ludhiana and today it has presence in Delhi NCR, Mumbai, Punjab & Haryana……….
We started with an annual premium of 15 Crore in 2002 and today in 2020/21 we are eyeing at a annual premium of 600 crore plus. We are leaders in fleet and infrastructure insurance today.
We are a Direct Insurance Broker, accredited by IRDA for providing wide range of Insurance Services including Life & General. We are authorized to offer all types of Insurance products, consultancy, risk management and policy servicing in India. It is one of the most services centric organization in the Insurance Industry providing tailor made solutions to Insurance requirements. We have been proudly serving many renowned corporates and fulfilled their insurance needs. Over a period of time we have developed expertise in Retail, Health, Motor, Tele Sales, Distribution through POSP and excellent liasoning with the top management of insurance companies. 
To enhance our business further Amit Singh Thakur has joined us as Chief Distribution Officer this year, he comes in with wide expertise in distribution of non life insurance.

How are Brokers better than Individual Agents & why?

In current scenario regulator wants industry to be more and more customer centric and benefiting customers. Basic difference between an agent and a broker is representation. Agent represents an insurance co. whereas broker represents a customer. So obviously broker will be able to give more options. Broker is not an individual but an institution which build in house competency to serve their customer. Broker can give more professional services and advice compare to an agent. 

We at SIBPL are now coming up with an online platform. With an aim to serve the client better, the portal will give multiple options with respect to his requirements and fair comparison of the options. Customers can opt for the product basis his requirement and the suggestive comparison analysis, thus ensuring no biased influence. Customer anyways, will always be able to avail professional services on this web aggregator platform, which will be our USP.

What are the Policies which an individual ideally should look for? And share the benefits?

Life is very uncertain, unpredictable and risky, even if you don't take a chance, today's fast lifestyle, global warming, viral diseases like corona, new technology has made life full of uncertainties. In my opinion every individual must have get few risks transferred to the insurance companies and ease of the burden.

Health Insurance: It is one of the most important insurance which every individual should have. It helps in ensuring the best medical care and facility without a strain on the finances. Today medical science have drastically improved and there is treatment for almost all diseases These health insurance plans offer a protection against high medical costs. These high medical costs if incurred leave a hole in your pocket, thus making it imperative to have Health Insurance. Health insurance product has various sub products like basic cover, top up, super top up, critical illness, accident cover. Once the policy has been taken customer should ensure the policy is reviewed and renewed regularly on annual basis.

Term Life Insurance: One of the most important policy for every individual as every individual wants to ensure financial security for their family. Term plan basically gives compensation for unexpected death and this policy give financial aid to the deceased’s family.

Motor Insurance: It is mandatory for all vehicles to be covered under an appropriate insurance policy before they ply on the road as per the Motor Vehicle Act of 1988. Motor insurance comprises of two parts third party damage and own damage. Third party insurance is mandatory and without it one cannot ply on road. Own damage is a customized motor insurance designed to protect you and your insured vehicle from your own damages. Various value added innovative product like zero depreciation, engine cover, key replacement etc are now available. Various insurance companies offers different combinations at different prices. Broker’s role here becomes  important as they can negotiate with insurance companies and pass on benefits to the customers. Motor dealer offers such covers but they don't forward benefits to the customers as they have vested interest in claim settlements.
Travel Insurance: Traveling has become essential part for exploring business opportunities or to maintain a better life style. People travel frequently and in a way expose themselves to various risks, while travelling domestically or internationally. Basic policies generally only cover emergency medical expenses while overseas, while comprehensive policies typically include coverage for trip cancellation, lost luggages, flight delays, public liability and other expenses. We strongly recommend one should not travel without adequate travel insurance.

Home Insurance:  This is the most ignored segment. This is generally purchased by people as a bundled product with the home loan, if made mandatory by the financer. 
Always buy insurance from your professional insurance advisor and not from you tax consultant, medical advisor, motor dealer or travel agent. They may give you easy solution but not the professional solutions.

Why even today insurance is Push Sale and not Pull Sales? 

Very unfortunate but true, insurance is still a push product and this is basically due to lack of awareness and traditional approach towards risks. The main reason for lack of awareness is lack of penetration. We as an industry need to focus and reach each and every remote location and ensure an ease in buying these products. 

 Majority of people are either uninsured or under insured. Under insured is a worst situation then being uninsured.It was only after our Prime Minister Sh.Narendra Modi announced a health insurance of 5 lacs sum insured the awareness increases, prior to that people were reluctant to buy a higher value of health insurance. 

You are stalwart of the Insurance Broking Industry. What is the difference between your early days and today’s Insurance market? 

Fortunately yes, we are changing ,evolving and growing at a fast pace. After 2014, Modiji's vision for social security gave a huge push to insurance industry in India, specifically the retail product. New Motor Act, IT platform of road authority gave massive jump in vehicle insurance. It has also increased awareness of buying insurance, control on fraudulent channels and more importantly the need of buying insurance at the right time.  

Today’s generation is very much serious about term plans and health insurance. We are moving towards a more mature market with digital platforms and brokers are playing a pivotal role in this growth story.

How are the insurance companies dealing with Covid 19? Are they adding the premium or they are adding the risk without adding the premium?

As per IRDA guidelines, all insurance companies will be offering hospitalization cover similar to the case of any other viral illness without any additional premium. However few companies have come up with innovative and affordable product specifically to cover Covid-19. This specific cover gives compensation for positive test report as well as for quarantine period. In addition it also  compensate for loss of pay or loss of job due to Covid-19.

In my opinion more innovative products like these are expected in future for safeguarding uncertainties of  human lives in midst of such events.

Which are the two Best Insurance Companies as per you and why?

We cannot classify the insurance companies and figure out best as the customer’s demand and the product and services offered by various companies may vary. As a company we basically look at the following like ease to buy, simple and easy to understand product, friendly after sales services and customer centric claim settlement. However every individual will give a different feedback for each of the services basis their experience.
We review products, premium and the available claims data with IRDA from time to time. Basis this we provide expert advice to the customers.

Where do you see the insurance company should work and why?

Insurance is an intangible product and it involves the trust factor. Building trust by insurance companies and insurance agents is extremely critical as in insurance we are selling a promise.In my opinion following to be focused upon :
1. We should have simpler products which layman can understand. 
2. Innovative products which can cover the maximum risk an individual is exposed to, not keeping things in exclusions. 
3. Use of Digitalization for distribution, servicing, record maintaining, this will help in easy availability, easy products, quick servicing, no duplication of documentation for servicing and claims.
4. Last but not the least, despite of all automation and digitalization every claim should be looked at with compassion.