Paytm Gets License To Sell Insurance In India; 1.6 Million Paytm’s Offline Merchants Will Sell Insurance!
This can be described as a new beginning in the insurance sector. Paytm, India’s biggest mobile wallet with 35 crore users can now sell insurance plans in India.
They have received the license to sell insurance plans, and this changes everything.
Paytm Gets Insurance License
Insurance Regulatory and Development Authority of India has received the license to sell insurance plans in india.
As of now, Paytm has secured license to sell insurance across 4 sectors: two-wheeler insurance, four-wheeler insurance, health insurance and life insurance.
The journey of getting the much-coveted license to sell insurance was not easy for Paytm.
Few months back, they had received the corporate agency license to sell insurance, due to which, they had launched a marketplace of insurance products. Partnerships with around 20 insurance providers was made.
However, in order to get the license to sell insurance products, they had to surrender their corporate agency license, and hence, they can now directly sell insurance products to all Indians.
1.6 Crore Offline Merchants Will Be Roped In
Paytm has a unique advantage: More than 1.6 crore offline merchants are right now using Paytm app for accepting payments.
Soon, these offline merchants will be roped in to sell insurance products, directly to the users of Paytm app. Based on the units sold, these offline merchants will also get commissions directly credited to their bank accounts.
Amit Nayyar, President, Paytm said, “The potential of the insurance business is huge as the market is still under-penetrated in India. As a company, we fully rely and trust on our merchant partners, selling insurance products and augmenting their income options while driving penetration.”
Interestingly, Paytm wanted to acquire CoverFox, an online insurance aggregator, but the talks fell through.
Now, since they already received the license, Paytm will directly compete against them, as well as other insurance aggregators such as PolicyBazaar and ET Money.
Along with Paytm Banks, and Insurance, Paytm has now transformed into a full-fledged financial services company, and this marks a new era in the fintech industry in India.