InsuranceDekho, an online insurance platform, has received approval from the Insurance Regulatory and Development Authority of India (IRDAI) to enter the reinsurance broking sector with a composite insurance broking license marking a significant milestone in the company's mission to revolutionise insurance accessibility and distribution across India.
Having transformed the insurance space through its tech-backed solutions, InsuranceDekho is now revolutionising the reinsurance space.
InsuranceDekho CEO and founder Ankit Agrawal said, "The IRDAI's approval is a significant strategic move for InsuranceDekho to achieve our vision of increasing insurance penetration and accessibility across India. 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.”
SMEs
For InsuranceDekho, small and medium enterprises (SMEs) represent a rapidly growing segment. The company said that it is the fastest-growing and largest InsurTech in the SME space. In line with its aggressive strategy to penetrate the SME business, InsuranceDekho has also made acquisitions in the SME segment in 2023.
The significant scale in premium sourcing, particularly within the SME space in FY24, makes the pivot to offering reinsurance brokerage services a strategic evolution for InsuranceDekho.
The reinsurance sector in India has seen significant growth, with industry premiums reaching INR5.47bn ($65.3m) in FY2023, with B2B products consistently seeing higher reinsurance compared to retail products.
Expanding into the reinsurance broking sector will enable the company to bolster insurance penetration in the nation by establishing deep distribution networks, enabling digitisation, diversifying into new product lines, and going deeper into the value chain to support its insurer partners.
InsuranceDekho has direct integration with 48 insurance companies in India, offering over 630 insurance products for motor, health, life, fire, marine and more. Thus, a composite reinsurance broking 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 move will aid in the expansion of contribution margins and directly increase EBITDA margins for InsuranceDekho.
InsuranceDekho is a brand name owned by Girnar Insurance Brokers, which was incorporated in 2016 and was granted the licence to act as a Direct Insurance Broker by the IRDAI in 2017. It enables its consumers to compare different insurance policies based on their requirements and helps them purchase the most suitable plan.