Gurugram-based insurance marketplace, InsuranceDekho, has received a composite insurance broking license from the Insurance Regulatory and Development Authority of India (IRDAI). This new license will enable the startup to expand its services beyond insurance broking, including offering reinsurance services to its clients.
Reinsurance Services
Reinsurance involves transferring a portion of the risk on an insurer’s books to another insurance company, which can help mitigate potential losses. With this new capability, InsuranceDekho aims to provide more comprehensive services to its clients, enhancing their risk management strategies.
Leveraging Technology Capabilities
InsuranceDekho plans to leverage its technological capabilities and deep industry knowledge to bring enhanced value to its clients and partners. “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,” said Ankit Agrawal, CEO of InsuranceDekho. The startup aims to use technology and data analytics to offer reinsurance services at competitive prices, improving contribution margins and increasing its EBITDA margin.
Competing with Major Players
InsuranceDekho’s move into the reinsurance market places it in direct competition with other major players like Policybazaar, which received in-principle approval to start reinsurance broking earlier this year. InsuranceDekho operates through agents selling insurance products on its platform and claims to have processed around Rs 3,300 crore in premiums for insurance companies in the last financial year. The company aims to increase this to Rs 5,000 crore in the coming year. The company’s SME business is a rapidly growing segment, recording Rs 300 crore in premiums in FY24.
Wide Range of Insurance Products
The platform integrates with 48 insurance companies and offers over 630 insurance products across various categories, including motor, health, life, fire, and marine insurance. The company’s extensive reach covers more than 1,500 regions, encompassing 98% of pin codes across India. Notably, over 90% of premiums come from Tier II and beyond regions.
Financial Performance
For FY23, InsuranceDekho reported Rs 96.5 crore in revenue, more than double the Rs 47.9 crore reported in FY22. Interestingly, the startup was also able to reduce its losses by 28.6% to Rs 51.6 crore in the last fiscal year.
InsuranceDekho acquisition of a composite broking license from IRDAI marks a significant milestone in its growth trajectory. By expanding into the reinsurance market and leveraging its technological capabilities, the company is well-positioned to enhance its service offerings and strengthen its market presence. As it competes with other major players, InsuranceDekho aims to continue its upward trajectory in the insurance industry.
