Web insurance aggregator Policybazaar has received regulatory nod to operate as an insurance broker in India.
The broking licence will allow the company to offer services like claims assistance, offline services, and establish points of presence network.
The firm, however, will surrender its aggregator licence to the Insurance Regulatory and Development Authority of India (IRDAI).
“We received our licence to be a broker for which we have been in touch with the regulator for the last three years,” PolicyBazaar CEO Yashish Dahiya was quoted by news agency PTI as saying.
Dahiya added, as a broker, PolicyBazaar will also be able to earn commissions from sales.
Policybazaar distributed health, motor and term life insurance as an aggregator.
As per PTI’s report, Policybazaar has a 25% market share in life insurance, with 10% in the health insurance market.
PB Fintech, a credit comparison portal valued at over $1bn, is the parent company of Policybazaar.
PB Fintech also promotes the online credit comparison portal Paisabazaar.com.
PB Fintech is backed by the likes of Japan’s SoftBank, Info Edge, Premji Invest, Temasek, Ribbit Capital, Chiratae, Inventus Capital Partners, True North, Tiger Global, Wellington and Steadview.
Established in 2008, PolicyBazaar currently hosts over 100 million visitors a year and sells 400,000 insurance policies per month, says its website.
True North made an investment of around $50m in Policybazaar in 2017.
In April this year, True North divested a portion of its stake in Policybazaar to five independent buyers.
Buyers included Serum Institute of India, Ashoka India Equity Investment Trust, Triumph Global Holdings, IIFL Special Opportunities Fund Series 8 and India Acorn Fund.