Razvan PAVEL, NETRISK Broker: "Online sales cannot become profitable unless long term investments in start-ups become available"

21 May 2012 — Mihai CRACEA
razvan_pavel_fiar2012"Online sales cannot become profitable unless long term investments in start-ups become available. Such a business can generate profit in the first five years only through streamlined processes and cost control", stated Razvan PAVEL, Director General, NETRISK Broker, owner of Asigura.ro portal.

The seed capital for any business for online sales of insurance policies amounts to EUR 30,000 for the IT component and another approximately EUR 30,000 for promoting the launch. Thus, the acquisition cost per visitor is RON 2, according to the research conducted by NETRISK Broker.

On the other hand, only 3% of the visitors buy an insurance policy, which means a RON 67 cost per policy. The operating costs amount to almost RON 20 per policy, while the average commission is RON 60 per policy. Thus, the aggregated loss for IT set-ups and 10,000 sold policies exceeds EUR 120,000.

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