PhonePe can now provide insurance products offered by all insurance firms as per the Insurance Regulatory and Development Authority of India (IRDAI)’s latest approval. The Wallmart owned PhonePe is one of the largest online payment providers in India. As an insurance brokerage firm, PhonePe can recommend personalized insurance product offerings to its huge userbase.
PhonePe is an Insurance Brokerage Firm
In 2020, PhonePe initiated insurtech sector services by availing the insurance corporate agent license, which allowed the payment giant to collaborate with only three insurance firms per category i.e. health, life, and general. And, this license was limited to corporate clients.
Now, PhonePe can offer insurance products from all insurance companies in India with its latest direct brokerage license. And, the fintech firm can now target its 300 million users to offer insurance services. The company will personalize the products as per users’ needs to attract customers. the license will allow PhonePe to distribute products from all insurance companies and offer personalized product recommendations to users.
PhonePe officially confirmed the above news of the direct brokerage license approval by IRDAI.
When PhonePe received an insurance license as a corporate agent, it got an overwhelming response. That success helped PhonePe to think about taking a direct brokerage license for all.
How Brokerage Licence will Help PhonePe?
Insurtech is one of the fastest-growing sectors in the Indian startup ecosystem. The current license will help PhonePe to become the noted firm in the insurtech industry due to its huge user base.
Talking about the same, Gunjan Ghai, Vice President & Head of Insurance at PhonePe said, “This license 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.”
He also informed that the current license will help PhonePe to become the one-stop destination for all insurance services. He added, “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.”
PhonePe aims to become the single platform that will offer full-fledged financial services providers. To achieve that, the fintech firm not only got insurance brokerage licenses, but it also received in-principle approval from the Reserve Bank of India (RBI) to operate as an account aggregator.
From the last few months, PhonePe has also continued its first rank in terms of the highest share of UPI transactions. The company started its financial services in 2017 when it started selling 24-karat gold on its platform. Later, it added Mutual Funds and insurance products. PhonePe also claims that over 80 percent of its customers belong to non-metro cities.