Delhi, March, 2020 : One97 Communications Ltd (OCL), which owns India’s largest payments and financial services platform Paytm, today announced that its wholly-owned subsidiary Paytm Insurance Broking Private Limited (PIBPL) has secured its license to sell life and non-life insurance from the Insurance Regulatory and Development Authority of India (IRDAI). This license will allow the company to roll out insurance products to millions of consumers across India.
Through its 100% subsidiary PIBPL, the company will now offer insurance products across four categories including two-wheeler, four-wheeler, health and life. PIBPL has already tied up with 20 of the leading insurance firms in India and would be integrating with 30 more companies over the next few weeks.
OCL’s journey in the insurance space started over three years back when it entered the corporate agency business. The company started with offering appropriate attachment products on Paytm transactions to evolve into a marketplace for all insurance products. It recently surrendered its ‘corporate agency’ license for obtaining the brokerage license.
PIBPL over the last several months has been working extensively to understand the needs of customers for insurance products and will be offering innovative insurance products in a seamless and easy to understand the online journey. The company would also provide policy management and claim services for customers.
Other than online initiatives, the company would be leveraging on its 16 million-strong merchant partner base to sell its insurance products all over the country. Building a large network of PoSP, PIBPL plans to increase the reach of insurance products to a large customer base. The firm would be empowering millions of merchants with alternate income sources which they would earn through commissions on selling insurance products. The company is in the process of shortlisting merchant partners who would be trained to become Point of Sales Persons (PoSPs). The company plans to rope in 2 lakh such PoSPs this year.
Amit Nayyar, President- Paytm said, “Our entry into Insurance Broking is in line with our commitment to broaden our footprint into financial services and offering numerous and customized choices to millions of our customers. This would enable us to offer a wider suite of product offerings from a large set of insurance partners. The potential of the insurance business is huge as the market is still under-penetrated in India. Paytm Insurance is going to give millions of our users the option of buying bite-sized insurance products at a competitive price. As a company, we fully rely and trust on our merchant partners, selling insurance products and augmenting their income options while driving penetration.”