The licence will allow PhonePe to distribute products from all insurance companies and offer personalised product recommendations to users.
Representative image (Source: ShutterStock)
Digital payments and financial services fintech PhonePe on August 30 said it has been issued an Insurance Broking licence from the Insurance Regulatory and Development Authority of India (IRDAI).
Last year, PhonePe had entered the insurtech sector with an insurance corporate agent licence, which allowed the company to partner with only three insurance companies per category i.e. health, life and general. With this direct broking license, the company can distribute insurance products from all insurance companies in India.
The new broking licence also allows PhonePe to start offering personalised product recommendations to its over 300 million users, and offering a much more diverse portfolio of insurance products for Indian consumers, the company said.
Since it entered the insurance segment in January 2020 as a corporate agent, PhonePe has launched offerings across general insurance, term insurance and health insurance. The company said that the overwhelming response to its early insurance product launches from customers encouraged it to apply for an Insurance Broking licence so it can rapidly expand its insurance offering for consumers.
Gunjan Ghai, Vice President & Head of Insurance at PhonePe said, “This licence is a big milestone in our insurance journey. PhonePe is India’s fastest growing insurtech and this move to broking will give us further momentum and accelerate our growth in this space.”
“We are building a robust, full-service platform for our deeply engaged customer base through products in partnership with high quality insurers. This move will lead us closer to our goal of becoming a one-stop destination for all the insurance needs of our customers,” he added.
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