InsuranceDekho Bags Composite Broking Licence, To Offer Reinsurance Services

CarDekho’s insurance arm InsuranceDekho has secured composite insurance broking licence from the Insurance Regulatory and Development Authority of India to offer reinsurance service to its clients beyond insurance broking.

“Our goal is to leverage our technological prowess and deep industry expertise to bring enhanced value to our clients and partners. This approach not only improves the insurance landscape but also strengthens our market position,” InsuranceDekho’s founder and chief executive Ankit Agrawal said.

Reinsurance, in simple terms, suggests the risk transfer of an insurer (customer) to another company in order to shrink the possibility of large payouts for a claim.

InsuranceDekho’s licence upgrade follows PB Fintech’s wholly-owned subsidiary PolicyBazaar Insurance Brokers receiving approval to upgrade its licence, allowing its entry into the reinsurance business, in February.

Also, this comes at a time when InsuranceDekho was in the last leg of discussions to acquire a majority stake through share swap in Bengaluru-based wealthtech startup BankSathi, in June.

Founded in 2016 by Agrawal and Ish Babbar, InsuranceDekho is an omnichannel insurance platform providing services such as investment options and tax schemes apart from insurance options. The company claims to have direct integration with 48 insurance companies in India, offering over 630 insurance products for motor, health, life, fire, marine, and more.

InsuranceDekho said in a statement that owning a composite insurance broker licence will enable the company to leverage its technology and data analytics capabilities and strong relations with Indian insurer partners to place reinsurance business at competitive prices.

This approach not only improves the insurance landscape but also strengthens our market position, Agrawal added.

Agrawal told Inc42, “Our long-term goals revolve around enhancing insurance penetration and accessibility throughout India. Our strategic expansion into reinsurance broking aligns seamlessly with this vision. This strategic move will enable us to utilize advanced data analytics and technology to place reinsurance business at competitive prices, thereby bolstering contribution margins and increasing EBITDA margins for InsuranceDekho.”

The Delhi NCR-based company initially revealed its plans of reinsurance initiative in October 2023, while raising $60 Mn (over INR 502.3 Cr) in its ongoing Series B funding round. 

Meanwhile, Bengaluru-based insurtech company Covrzy received direct broking (general) licence from the Insurance Regulatory and Development Authority of India, to operate as a direct insurance broker to offer business insurance solutions, a week ago.

Earlier this month, Aeries Financial Technologies, which runs AI-led fintech startup CASHe, bought Hyderabad-based Centcart Insurance Broking Services, to enter the insurance broking vertical.

InsuranceDekho reported a 29% decline in its net loss to INR 51.5 Cr in the financial year 2022-23 (FY23) from INR 72.2 Cr in FY22, on the back of a strong growth in its business, while its operating revenue doubled to INR 96.4 Cr during the year under review from INR 47.9 Cr in the previous fiscal year.

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