Policybazaar gets IRDAI approval to become composite insurance broker

Policybazaar Insurance Brokers, which is a wholly owned subsidiary of PB Fintech , can now upgrade to functioning as a composite insurance broker after receiving approval from the Insurance Regulatory and Development Authority of India (IRDAI). The upgrade will allow Policybazaar to expand its insurance penetration by providing reinsurance products in addition to existing offerings.

As per the company's disclosure, in Q3 FY24, the revenue of their primary online marketplaces, Policybazaar and Paisabazaar, increased by 39% to ₹593 crore. The approval, in principle, upgrades the company’s licence from a direct insurance broker to a composite insurance broker.

A composite insurance broker, as per IRDAI, is an insurance broker that has been registered with the authorities and arranges insurance and/or reinsurance for customers who are based in India or elsewhere. Their responsibilities include offering risk management and claims consulting, as allowed by the IRDAI (Insurance Brokers) Regulations 2018.

Policybazaar plans to extend its service portfolio to include risk management, reinsurance product sales facilitation and claims data management with the updated licence. However, it is important to note that the IRDAI has presently issued an ‘in-principle approval’ and the final approval is awaited.

As per the disclosure, the company reported revenue of ₹871 crore and net profit of ₹37 crore in in Q3FY24.

Following IRDAI’s in-principle approval, company shares closed 7.8% higher at ₹1,006 levels on Monday, 19 of February 2024.