India’s Policybazaar, a subsidiary of PB Fintech, has obtained authorisation from the Insurance Regulatory and Development Authority of India (IRDAI) to operate as a composite insurance broker.
This upgrade from a direct insurance broker will allow the company to offer reinsurance products in addition to its existing general and life insurance services.
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In a stock exchange filing, PB Fintech said: “Insurance Regulatory and Development Authority of India (IRDAI) vide its letter no. IRDA/COR 742/2024 dated 16 February 2024, has granted in-principle approval to Policybazaar Insurance Brokers, 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.”
The company believes that this approval is a significant step towards increasing insurance penetration in India.
It plans to leverage technology, process control and data analytics to bring innovation to the reinsurance sector.
The new licence will enable Policybazaar to broaden its services to include risk management, the arrangement of reinsurance product sales and the maintenance of claims data.
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By GlobalDataIn the financial update for the December quarter, PB Fintech reported its first net profit of Rs372m, a substantial improvement from a net loss of Rs870m in the previous quarter. The company’s revenue from operations saw a growth of 43% year-on-year, reaching Rs8.71bn.
In related news, Japanese technology investor SoftBank fully divested its stake in PB Fintech.
According to the Economic Times, SoftBank sold its remaining shares in a transaction in mid-December, netting approximately Rs914m.
Overall, SoftBank realised returns of around $650m from its investment in the Gurugram-based insurance aggregator, culminating in profits of roughly $450m.
In November 2023, reports emerged that PB Fintech invested Rs3.2bn in Policybazaar to bolster its overall financial health.
