US-based venture fund TDA Capital Partners and investment bank, Edelweiss, have taken a "significant stake" in the insurance site InsureMagic.com, according to Ajay Arora, managing director, Datacomp Web Technologies, the company which has promoted the site. Arora did not disclose the quantum of investment made by the investors.Explaining the rationale for the investment Venkat Ramaswamy, co-founder Edelweiss Capital said: "The only sector we are currently bullish on as far as the Internet goes, is finance-and insurance we feel has significant growth potential and distribution of investment products on the Net is extremely scalabale."
InsureMagic aims to be a one-stop shop for all insurance-related needs, beginning with information. "Insurance agents invariably wind up pushing policies where the premium is high and they are the contact point for the customer. As a result there is a huge information gap as far as the customer goes, and this is precisely the gap we want to fill to start with," says Madhu Awatramani, Datacomp Web Technologies.
Interestingly, the company has about 15 years of experience in creating software for the insurance sector and the site incorporates software which will be made available to agents for a subscription fee. The software which is available in this ASP model has been branded WonderPlans and for a maximum fee of Rs 3000 per annum, agents can avail of applications ranging from Breakeven Charts to Plan Comparisons, General Applications (multiplan, investment, growth and endowment charts) to Special Plans. "We plan on charging only Rs 1000 for users who already use our software products," explains Mr Arora.
Datacomp's key insurance software products in the market currently are Visual Magic Pro which offers tools for policy services, commission tracking, client services, proposal follow up, performance monitoring and task management features among several others on a Windows Platform and Visual
Do Magic which offers tools for agent information and analysis, policy records and premium reports services among others.
About 3000 agents across the country use Visual Magic Pro according to Mr Arora. He adds that agents will be able to create their own homepages for free on the site and can also export data from their systems which are already based on Datacomp software to the site. Clients will be awarded passwords and can access their policy details on these agent micro sites according to Arora.
"With privatization of the insurance sector, there will be considerbale clutter in terms of information and we want to cut through that clutter with a focussed information and services site," sums up Ms Awatramani.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.