InsuranceDekho Earns Composite Broking Licence From IRDAI

The Insurance Regulatory and Development Authority of India (IRDAI) has granted a composite insurance broking licence to CarDekho’s insurance division, ‘InsuranceDekho’, enabling it to provide reinsurance services to its clients in addition to insurance broking.

Our objective is to provide our clients and partners with more value by utilizing our extensive industry understanding and technology prowess. Ankit Agrawal, CEO of InsuranceDekho, stated, “This strategy not only strengthens our market position but also enhances the insurance landscape.”

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.

Reinsurance, to put it simply, is the transfer of an insurer’s (or customer’s) risk to another business with the goal of reducing the likelihood of significant claim payouts.

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InsuranceDekho, an omnichannel insurance platform founded in 2016 by Agrawal and Ish Babbar, offers services including investment alternatives and tax schemes in addition to insurance options. The company offers over 630 insurance products for auto, health, life, fire, marine, and other categories, and it claims to have direct integration with 48 insurance providers in India.

Thanks to rapid business growth, InsuranceDekho reported a 29% decrease in net loss to INR 51.5 Cr in FY23 from INR 72.2 Cr in FY22. Meanwhile, operating revenue more than doubled to INR 96.4 Cr in FY23 from INR 47.9 Cr in the previous fiscal year.

“This strategy strengthens our position in the market and enhances the insurance landscape,” Agrawal continued.

The Delhi, NCR-based company first disclosed its reinsurance program plans in October 2023, at the same time that it was raising $60 million (more than INR 502.3 crore) for its current Series B fundraising round.

A week ago, the Insurance Regulatory and Development Authority of India granted a direct broking (general) license to Covrzy, an insurtech firm based in Bengaluru, enabling it to function as a direct insurance broker and provide business insurance solutions.

Aeries Financial Technologies, the company behind the AI-driven fintech firm CASHe, acquired Centcart Insurance Broking Services earlier this month in an attempt to break into the insurance broking market.

The license upgrade for InsuranceDekho follows the approval in February of “PolicyBazaar” Insurance Brokers, PB Fintech’s wholly-owned subsidiary, to upgrade its license and enter the reinsurance market.