Paytm Insurance Broking (PIBPL), a subsidiary of Paytm, has got a brokerage licence from the Insurance Regulatory and Development Authority of India (IRDAI) to sell life and non-life insurance products. It will offer insurance products across four categories: two-wheeler, four-wheeler, health and life. The Economic Times first reported this. We have reached out to Paytm for more details.
To get the brokerage licence, Paytm’s parent company One97 Communications had to surrender its “corporate agency” licence. Unlike brokers who are intermediaries between prospective customers and providers, a corporate agent sells policies on behalf of the insurance provider.
PIBPL has tied up with 20 insurance firms in India and will onboard 30 more companies over the next few weeks. The company will also provide policy management and claim services to customers. PIBL will also sell its insurance products through its network of merchant partners, who will earn a commission on each sale. It is planning to onboard 200,000 point-of-sale persons this year to sell its insurance products offline.
This isn’t the first time that Paytm has entered the insurance market:
- In 2018, Paytm had set up two insurance units of its own — Paytm Life Insurance Ltd, and Paytm General Insurance Corporation Ltd.
- In 2018, Paytm tied up with the Life Insurance Corporation (LIC) to enable insurance premium payments via the platform.
Paytm is not the only digital payments company to venture into the insurance sector:
- Earlier this year, Paytm’s competitor, PhonePe entered the insurance business, partnering with general insurer Bajaj Allianz.
- In 2018, MobiKwik launched accidental insurance on its mobile website and app. The following year, it started offering life insurance to users of its app.