Fintech company Paytm has acquired brokerage license for its wholly-owned subsidiary Paytm Insurance Broking Private Limited (PIBPL) to sell life and non-life insurance from the Insurance Regulatory and Development Authority of India (IRDAI). Paytm will now offer insurance products in two-wheeler, four-wheeler, health and life insurance categories. The company, in a statement on Tuesday, said PIBPL has already partnered with 20 insurance companies and would add 30 more in the coming few weeks.
Paytm had forayed into insurance space “over three years back when it entered the corporate agency business offering attachment products on Paytm transactions to evolve into a marketplace for all insurance products,” the company said. Paytm had recently surrendered its ‘corporate agency’ license to get the brokerage license. Along with insurance products, PIBPL would also provide policy management and claim services. The company said it would leverage on its merchant partner base of 16 million to sell insurance products. In order to expand the customers base in insurance products, Paytm will be “empowering millions of merchants with alternate income sources which they would earn through commissions on selling insurance products,” it said. It is currently selecting merchant partners to be trained to become Point of Sales Persons (PoSPs) as 2 lakh PoSPs are planned to be onboarded this year.
“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,” said Amit Nayyar, President, Paytm. The company currently has 300 million wallets, 100 million UPI handles, 220 million saved cards, and 55 million bank accounts, it said in a blog recently. It recorded 26 billion total transactions in 2019 across all payment methods with around 150 million annual transaction users out of around 210 million users in India…Read more>>