Paytm To Focus On Insurance Distribution After IRDAI Accepts Registration Withdrawal Plea

Fintech major Paytm’s parent One97 Communications will now focus on distribution of insurance products of other insurers after the Insurance Regulatory and Development Authority of India (IRDAI) accepted Paytm General Insurance’s registration withdrawal application.

Paytm General Insurance Limited had approached the IRDAI for the withdrawal of its application for registration as a “General Insurance Company” to be a manufacturer of general insurance products.

“Further to our letter dated May 25, 2024, regarding the withdrawal of Paytm General Insurance Limited’s application for registration as a ‘General Insurance Company’ with the IRDAI for manufacturing general insurance products, we have been informed that IRDAI has accepted the withdrawal request, as per their letter dated June 12, 2024,” Paytm said in a regulatory filing.

The filing added that the decision aligns with Paytm’s strategy to enhance insurance distribution across health, life, motor, shop and gadgets segments through its subsidiary, Paytm Insurance Broking Private Ltd (PIBPL).

“We aim to innovate on small ticket insurance products for consumers and merchants alike, by focusing on small-ticket general insurance offerings along with our partners and leverage the strength of Paytm’s distribution to increase insurance penetration to a wider audience,” it said.

Earlier today, shares of Paytm’s parent entity One97 Communications Ltd extended their gains for another trading session, rising nearly 6% on Thursday (June 13) after announcing a partnership with Samsung Wallet for booking flights, buses, movies, and event tickets.

This also coincides with reports of Paytm undergoing restructuring. Earlier this week, it was reported that the company is looking to terminate a number of employees as part of a restructuring plan.