Policybazaar Insurance Brokers Earns IRDAI Broker License

Policybazaar Insurance Brokers, a subsidiary of PB Fintech, has become a composite insurance broker after receiving the final approval from the insurance regulator IRDAI. This will allow the company to sell reinsurance products along with general and life insurance products. The company aims to deepen the insurance penetration in India by bringing more innovation into reinsurance capacity.

About Policybazaar Insurance Brokers

Policybazaar Insurance Brokers, formerly known as Policybazaar, is one of India’s leading online insurance platforms that offers comparison and purchase of various insurance products. The company was founded in 2008 and has over 100 million registered users. The company is backed by investors such as SoftBank, Tiger Global, Info Edge, Temasek and others. The company offers products such as health insurance, term insurance, motor insurance, travel insurance, home insurance and others.

License Upgrade Process

The company had applied for the license upgrade in December 2023 and received the in-principle approval from IRDAI in February 2024. The certificate of registration as a composite broker came into effect from March 1, 2024, according to a stock exchange filing by PB Fintech. The company had to comply with various requirements such as capital adequacy, governance structure, professional indemnity cover and others to get the license upgrade.

Benefits of Composite Broker License

As a composite broker, Policybazaar Insurance Brokers will be able to sell reinsurance products, which are insurance products for insurance companies. Reinsurance helps insurance companies to reduce their risk exposure and increase their solvency. Policybazaar Insurance Brokers plans to leverage its technology, data analytics and process control to offer innovative reinsurance solutions to the insurance industry. The company expects that the license upgrade will help it to expand its product portfolio, diversify its revenue streams and enhance its customer value proposition. The company also hopes to contribute to the growth and development of the insurance sector in India by increasing the reinsurance capacity and availability.

Other Business Verticals

Policybazaar Insurance Brokers is a part of PB Fintech, which also operates Paisabazaar, an online credit marketplace. Paisabazaar offers products such as personal loans, credit cards, home loans, business loans and others. PB Fintech recently reported its first quarterly profit since its listing in November 2023. The company posted a net profit of Rs 38.05 crore for the quarter ended December 31, 2023, on a revenue of Rs 871 crore.

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