Social Distancing Is Here To Stay, Businesses Should Keep That In Mind: Yashish Dahiya

It's no secret that the nationwide lockdown has crippled the country’s economy and led to a drop in revenues and profits of businesses. Way ahead, it's going to be a tough and long battle against fighting the pandemic for companies.

Yashish Dahiya, Co-Founder and Group Chief Executive Officer (CEO), Policybazaar believes that even after the lockdown is lifted, social distancing will stay and businesses need to keep that in mind.

A webinar titled “The world after COVID-19” was organized recently by Business Standard in which Dahiya answered questions from students of top B-Schools.

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Excerpts from the webinar:

Q. Historically, insurance companies have done well to post a pandemic. What is your view?
When an event like Covid-19 or SARS happens, people’s awareness of health and life insurance gets heightened. Our mind is designed to look at things that happened recently.  Motor insurance claims have really gone down and motor insurance has become a profitable business for most companies and even health insurance. Insurance becomes a fairly profitable business for the short while post an event like COVID-19 but insurance is a long-term business. But for two-three years, I think it will be a fairly profitable business and it will scale up.  

Q. Do you feel that the way businesses operate will go back to normal or will the impact of Covid-19 remain?
I think the lockdown is going to be over at some point. Maybe in a week or five weeks or in three months and we are economically going to be in a very difficult position. However, social distancing will carry on. My dad is 85 years old and my mom is 70 years old. They have locked their house from both sides and it is very unlikely that they are going to invite, let's say an insurance agent inside the house at least for a year. So, I think social distancing is here to stay and it's not six weeks or three-month affair but a 2-3 years affair and I think businesses need to take that into account as they start to think through things. It's like nine eleven post which there were tight security checks at airports across the world. So, there is going to be a long time impact of COVID-19.

Q. What are your views on entrepreneurship now and in the next two years to come? Is there a silver lining?
I think entrepreneurship is a great thing to do but you must know what the problem you are solving. You have to know that eventually, the target is the return on capital and not just growth. So, I think if you are confident about what problem you are solving and you're quite focused, the room for entrepreneurship is like never before. Capital is not a problem at all. I just think of it back in 2008, when we raised $5 million eyebrows were raised. Info-edge was built with Rs 7.3 crore which is now I think a 4-5 billion-dollar company. Till date, Policybazaar has used about $60 million to bring it up but it's very small compared to what many people have used. All I'm saying is you have to know that eventually, the target is a return on capital employed and not just growth.

Q. What would you advise students who are graduating this year or the next year? 
I would urge you to develop respect for the job you get whatever it be because I have seen it really harm people who are unemployed. At the same time, I’ve really seen it benefiting people who had that respect. We've had a few employees who joined us very young and became a few examples like Naveen Kukreja, Tarun Mathur, Jerry Bhutia. What was different about these people from others was that they respected their jobs and didn’t take it lightly. Have genuine capability, generate the intent for the company and the job, and don’t negotiate. It's going to be more difficult in the post Covid era. So, respect having a job.

(Article edited by: Sunny Lamba)

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