Economic Times
 
Gurugram-based insurance marketplace InsuranceDekho has received the composite insurance broking licence from the Insurance Regulatory and Development Authority of India. This will allow the firm to offer reinsurance service to its clients beyond insurance broking.
 
Reinsurance is the system through which some amount of the risk on the books of an insurer gets transferred to another insurance company.
 
“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 chief executive Ankit Agrawal said.
 
In October last year, Agrawal told ET that he was looking to apply for a composite broking licence. InsuranceDekho joins rival marketplace Policybazaar, which had received an in-principle approval to start the reinsurance broking business in February this year.
 
InsuranceDekho runs an insurance marketplace and works through agents who sell insurance products through their platform to consumers. Policybazaar, which was primarily an online and telecaller-led insurance marketplace, also ventured into this agent-led business a year or so back. Another major company operating in this space is Turtlemint.
 
InsuranceDekho processed around Rs 3,300 crore in premium for insurance companies in the last financial year and is expecting to push this number to Rs 5,000 crore over the next one year. The SME business is one of the fastest growing segments for the startup, recording Rs 300 crore in FY24 premiums.
 
InsuranceDekho has direct integration with 48 insurance companies, offering over 630 insurance products across categories like motor, health, life, fire, marine.
 
The composite insurance broker licence will enable the company to leverage its technology and data analytics to place reinsurance business at competitive prices, Agrawal said.
 
This move will aid in the expansion of contribution margins and directly increase the Ebitda margin for InsuranceDekho, he added.
 
Goldman Sachs Asset Management and TVS Capital-backed InsuranceDekho last year raised $60 million in a round led by Japanese financial services major Mitsubishi UFJ Financial Group, Beams Fintech and others.