PhonePe, India’s fastest growing Insurtech company, today announced that it has been issued an Insurance Broking license from the Insurance Regulatory and Development Authority of India (IRDAI). Last year PhonePe entered the Insurtech sector with a limited insurance ‘corporate agent’ license, which restricted the company to partnering with only three Insurance companies per category. Now, with this new ‘Direct Broking’ license, PhonePe can distribute insurance products from all insurance companies in India.
The new broking license also allows PhonePe to start offering personalized product recommendations to its 300+ million users, and offering a much more diverse portfolio of insurance products for Indian consumers.
PhonePe forayed into the insurance segment in January 2020 as a ‘corporate agent’ and has since launched offerings across general insurance, term insurance and health insurance. The overwhelming response to its early insurance product launches from millions of customers, encouraged the company to apply for an Insurance Broking license so it can rapidly expand its insurance offering for consumers.
Speaking on the development, 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. We are building a robust, full service platform for our deeply engaged customer base through innovative 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 is India’s leading digital payments platform with over 300 million registered users. Using PhonePe, users can send and receive money, recharge mobile, DTH, data cards, pay at stores, make utility payments, buy gold and make investments. PhonePe forayed into financial services in 2017 with the launch of Gold providing users with a safe and convenient option to buy 24-karat gold securely on its platform. PhonePe has since launched several Mutual Funds and Insurance products like tax-saving funds, liquid funds, international travel insurance and Corona Care, a dedicated insurance product for the COVID-19 pandemic among others. PhonePe also launched its Switch platform in 2018, and today its customers can place orders on over 600 apps including Ola, Swiggy, Myntra, IRCTC, Goibibo, RedBus etc. directly from within the PhonePe mobile app. PhonePe is accepted at 20+ million of merchant outlets across India.