Steven
Just to layer on top of that. Nick, is that the use case for the technology as Rohan just said, you can purchase these companies infuse it with the technology,
and youve just had a radical transformation in the metrics of that firm. But whats also happening is the firm was born in India, but has now moved outside of India. The majority of revenues are outside of the Indian context, but the
overall cost structure of insurance, and therefore the margins associated with insurance in India are much, much tighter, much smaller, and the gross figures are much larger outside of India being the largest here in the US. Second so in Europe. And
the technology stack is equally applicable to whats happening here as in whats happening in India. So, it has implications for M&A that are massive, but it has really big implications for what the margins could be as the company
continues to expand throughout more high-cost insurance jurisdictions. And Im wondering, Rohan, if you could just give a couple of bars on that, because I think that the numbers are really striking.
Rohan
Yeah, I think theres some clear metrics. As
Steve said, we were born, though were a Delaware company, but we started operating in India first. And the numbers are India is a smallish market, right? But $65 is the average premium for an auto insurance policy in India. In the UK,
its around $700. And in the US. Its double of that too. So, what happens is we built the technology in a low cost, low margin environment, but as we expanded through M&A, through organic growth in the UK., Europe and the US. We saw
meaningful acceleration both in ticket size, because everything is downstream of your premium. So meaningful acceleration in ticket size, but largely an incredible acceleration in the margin profile of the business. And as of now, 70% of our revenue
comes from Europe, UK, and the US. And we expect that to continue. And our cost basis still remains the lab, the technology, the AI research we are building in India. So, we are using this leverage to grow into a large and profitable business moving
forward.
Nick
Yeah, thats really interesting.
And looking at those big markets, you know, India, Europe and the US. And you mentioned youve already used some M&A to anchor yourself and some of those and looking at more, do you have know, even within Europe, I imagine each jurisdiction
at least somewhat slightly different. Do you have some priority areas youre looking to get into, whether organically or inorganically? And how much are you feeling like theres still a lot of work to become denser where you are?
Rohan
So, I think each market is slightly different.
India is there are 23 insurers. We already work with 20 of them, and we are continuing to expand in the market. India is a smallish market, roughly ten to $15 billion auto insurance market, but growing very quickly, almost 7-8% a year growth. And India is also one of the fastest growing economies in the world. So, youre going to see India move from really a developing economy to a developed economy over the next 30, 40 years.
And we want to ride that growth. We have a substantial base out there. We also have a base in the UK. UK is kind of a very important geography for