As Indian masses come online, Warren Buffett, the master of traditional businesses, is betting big on Indian consumers. Ironically.
He wants to sell insurance online. Currently, Berkshire India sells motor, travel and health insurance products online at BerkshireInsurance.com. Now it wants to market life insurance as a corporate agent of Bajaj Allianz Life Insurance. It started with just 8 employees and in 2011 and is already upto 100 employees in India.
Headquartered in Gurgaon, the company uses internet as the sales mode in India. And it is now betting big on the online modes in India – as the use of smartphones rises in the country.
“…Over half of India’s total Internet user base will access Internet solely through mobile or tablet devices by 2015. Since our direct model of business employs telephone and Internet, we are positioned to enjoy a great advantage,” BerkshireInsurance.com CEO Arun Balakrishnan said.
“We are confident of our business model and are continually developing it to make it even more efficient and cost effective,” he said.
It is interesting that someone like Warren Buffett is seeing something that the Indian companies aren’t – ie; rise of the social media and smartphones to sell business products.