According to PB Fintech, the approval will allow Policybazaar “to deepen the insurance penetration in the country” and bring “more technology, process control and data analytics based innovation into reinsurance capacity”.
“Insurance Regulatory and Development Authority of India (“IRDAI”) has granted In-principle approval to Policybazaar Insurance Brokers Private Limited (“Policybazaar”), a wholly owned subsidiary of the company for upgradation of license from direct insurance broker (Life and General) to composite insurance broker,” said PB Fintech in a stock exchange filing on Friday evening.
The upgradation of licence now allows Policybazaar to undertake a wider gamut of services such as risk management, selling reinsurance products and maintaining claims data, apart from just being a pure play insurance buying platform.
Last month, PB Fintech reported its first ever net profit of Rs 37.2 crore for the third quarter ended December. Following the guidance provided in the previous quarters, the company also reported profits of Rs 4.2 crore for the first nine months of FY24.
The firm’s revenue from operations grew 43% on year to Rs 871 crore in the third quarter. Its core online marketplaces Policybazaar and Paisabazaar reported a 39% increase in combined revenues at Rs 593 crore.
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In an interaction with ET, PB Fintech chairman and cofounder Yashish Dahiya said that the company is looking to return a part of its capital to shareholders either through a share buyback or dividends. The company expects cash reserves to touch Rs 7,500 crore in 2027, Dahiya added.
Dahiya said the company will look to apply for a payments aggregator licence to improve efficiencies around instant settlements to customers in case of cancellation of insurance policies.