Policy Bazaar’s Venture into the Reinsurance Sector

Attention India
3 Min Read

Policybazaar Insurance Brokers, a subsidiary of PB Fintech, has obtained in-principle approval from the insurance regulator for an upgraded license, enabling its foray into the reinsurance domain.

Approval for Upgraded License

In an exchange filing, PB Fintech announced the receipt of an in-principle approval from the Insurance Regulatory and Development Authority of India (IRDAI) to elevate Policybazaar Insurance Brokers’ license from Direct Insurance Broker to Composite Insurance Broker under IRDAI Regulations, 2018.

Strategic Implications

The approval signifies Policybazaar’s strategic move to deepen insurance penetration in India through technological advancements, enhanced process control, and data analytics-driven innovations in reinsurance capacity.

Role of Reinsurance Companies

Reinsurance entities play a vital role in consolidating policies for insurers, thereby mitigating risks and enabling them to manage customers with coverage limits that would be otherwise challenging to handle independently.

Regulatory Environment

IRDAI’s recent amendments to reinsurance regulations aim to foster a conducive business environment, attracting more reinsurers to establish operations in India.

Financial Milestones

PB Fintech achieved profitability for the first time in the December quarter, marking a significant milestone in its journey. The company reported a profit after tax of INR 37 Cr, propelled by growth in insurance premiums, improved renewals with higher margins, and enhanced contributing margins.

Financial Performance

PB Fintech witnessed a notable surge in total operating revenue, which escalated by 43% year-on-year to INR 871 Cr in the reported quarter. However, on a quarter-on-quarter basis, there was a marginal increase from INR 812 Cr in the preceding quarter.

Core Business Growth

The revenue from PB Fintech’s core online business, encompassing platforms like Policybazaar and Paisabazaar, witnessed a robust growth of 39% year-on-year to INR 593 Cr in Q3 FY24. Additionally, the contribution margin from this vertical improved to 44% during the quarter.

Investment Development

SoftBank, a Japanese conglomerate, reportedly exited PB Fintech last month, marking a significant investment milestone. The exit yielded returns of approximately $650 Mn for SoftBank, underlining the attractiveness and potential of PB Fintech as an investment opportunity.


In conclusion, Policybazaar’s venture into the reinsurance sector, facilitated by an upgraded license, reflects its commitment to driving innovation and expanding its footprint in the insurance landscape. Combined with its financial achievements and strategic investments, PB Fintech is poised for continued growth and success in the evolving insurance market.

-Prisha Jaiswal

Share This Article
Leave a comment

Leave a Reply