Insurance marketplace InsuranceDekho receives Composite Broking License from IRDAI

Gurugram-based insurance marketplace InsuranceDekho has received a composite insurance broking license from the Insurance Regulatory and Development Authority of India (IRDAI).

With this, the startup will be able to expand its services beyond insurance broking, including offering reinsurance services to its clients.

Reinsurance involves transferring a portion of the risk on an insurer's books to another insurance company, which can help mitigate potential losses.

Leveraging technology capabilities

InsuranceDekho plans to leverage its technological capabilities and deep industry knowledge to enhance value for its clients and partners.

"Our goal is to leverage our technological prowess and deep industry expertise to bring enhanced value to our clients and partners. This approach not only improves the insurance landscape but also strengthens our market position," said Ankit Agrawal, CEO of InsuranceDekho.

The startup aims to use technology and data analytics to offer reinsurance services at competitive prices, improving contribution margins and increasing its EBITDA margin.

Competing with major players

InsuranceDekho's move into the reinsurance market places it in direct competition with other major players like Policybazaar, which received in-principle approval to start reinsurance broking earlier this year.

InsuranceDekho, which operates through agents selling insurance products on its platform, claims to have processed around Rs 3,300 crore in premiums for insurance companies in the last financial year and aims to increase this to Rs 5,000 crore in the coming year.

The company's SME business is a rapidly growing segment, recording Rs 300 crore in premiums in FY24.

Offering a wide range of insurance products

The platform integrates with 48 insurance companies and offers over 630 insurance products across various categories, including motor, health, life, fire, and marine insurance.

The company's extensive reach covers more than 1,500 regions, encompassing 98% of pin codes across India. Notably, Over 90% of premiums come from Tier II and beyond regions.

InsuranceDekho's financial performance

For FY23, InsuranceDekho reported Rs 96.5 crore in revenue, more than double the Rs 47.9 crore reported in FY22. Interestingly, the startup was also able to reduce its losses by 28.6% to Rs 51.6 crore in the last fiscal year.