IRDAI gives in-principle nod for Policybazaar to upgrade license, to enter reinsurance selling

The Insurance Regulatory and Development Authority of India (IRDAI) has given its in-principle nod to PB Fintech's Policybazaar Insurance Brokers.

The nod enables the company to transition from a direct insurance broker to a composite insurance broker. This upgrade broadens Policybazaar's scope, allowing it to delve into reinsurance products, risk management, and claims data maintenance, marking a pivotal shift from its current operations.

"We are pleased to inform that Insurance Regulatory and Development Authority of India (“IRDAI”) vide its letter no. IRDA/COR 742/2024 dated February 16, 2024, 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 & General) to Composite Insurance Broker under IRDAI (Insurance Brokers) Regulations, 2018 (“Regulations”). This will allow us to deepen the insurance penetration in the country by bringing more technology, process control and data analytics based innovation into re-insurance capacity," the company informed in an exchange filing.

Enhancing insurance penetration

With this approval, Policybazaar aims to deepen insurance penetration in India by integrating advanced technology, process control, and data analytics into reinsurance. The move is seen as a strategic step towards innovating within the reinsurance capacity, potentially transforming the insurance landscape in the country. 

Is PolicyBazaar profitable? 

For the first time, PB Fintech reported a net profit of Rs 37.2 crore for the quarter ending December 31, 2023. The company's revenue from operations saw a significant uptick, growing 43% to Rs 871 crore in the same period, highlighting the firm's robust financial health and operational growth.

Planning to return capital to shareholders 

The company's chairman and co-founder, Yashish Dahiya, said that the company plans to potentially return capital to shareholders through mechanisms like share buybacks or dividends. Additionally, with an eye on further enhancing customer service efficiency, Policybazaar is considering applying for a payments aggregator license, which would streamline instant settlements for customers in events like insurance policy cancellations.