Online insurance marketplace Policybazaar has been granted the upgraded licence of ‘composite insurance broker’, by the Insurance Regulatory and Development Authority of India (IRDAI), enabling it to enter the reinsurance business.
The approval was granted to Policybazaar Insurance Brokers Private Limited, a wholly owned subsidiary of PB Fintech.
The upgradation from ‘direct insurance broker’ is said to enable to deepen its stronghold on insurance products in the country with the help of technology, process control, and data analytics in the reinsurance capacity, the company said in a filing with the stock exchanges on late Friday evening.
Reinsurance is an insurance policy bought from another insurance company to insulate itself from a major risk. It is a fast-growing market in India with the government making strides in making the country a global reinsurance hub.
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In August last year, IRDAI made amendments in the reinsurance regulations to enable a more favourable business environment and encourage the entry of a larger number of reinsurers. This included a reduction in the minimum capital requirements for foreign reinsurance branches to Rs 50 crore from Rs 100 crore in a bid to simplify reinsurance processes.
PB Fintech ended the third quarter of FY24 with a net profit of Rs 38 crore, against a loss of Rs 87.3 crore in the year-ago period, fuelled by an increase in revenue from its core marketplace businesses—Policybazaar and Paisabazaar.
Edited by Swetha Kannan
