Mumbai, July 31, 2024: InsuranceDekho, one of India’s leading insurtech brand, 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 revolutionize insurance accessibility and distribution across India.
InsuranceDekho intends to add value in this segment by placing a portion of insurance risk of an Insurance company on a reinsurance company and securing competitive pricing for insurers. The company aims to boost insurance penetration in the nation by harnessing technology and applying data analytics to innovate in the reinsurance industry.
Mr. Ankit Agrawal, CEO and Founder 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. We are committed to balancing innovation with practical business strategies, always prioritizing the needs of both insurers and the people they serve.”
The reinsurance sector has seen significant growth, with industry premiums reaching INR 547 crores in FY2023, with B2B products consistently seeing higher reinsurance compared to retail products. For InsuranceDekho small and medium enterprises (SMEs) represent one of the fastest growing segments and the company earned a premium of INR 300 crore in the current financial year (FY24), becoming the fastest growing and largest insurtech in SME space. In line with its aggressive strategy to penetrate the SME business, InsuranceDekho has also made acquisitions in the SME space 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.
InsuranceDekho has earned around INR 3,300 crore in premiums for the current financial year (FY24) and is expecting to grow to approximately INR 5,000 crore over the next 12 months. InsuranceDekho’s vision is to increase insurance penetration by reaching 6 Lac villages in India. Expanding into the reinsurance broking sector will enable the company to bolster insurance penetration in the nation by establishing deep distribution networks, enabling digitization, diversifying into new product lines, and going deeper into the value chain to support their 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 being a composite insurance broker license 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.
Having transformed the insurance space through its tech-backed solutions, InsuranceDekho is now revolutionizing the reinsurance space.