Payment giant Paytm has received a new insurance brokerage license from India’s Insurance Regulatory and Development Authority.
With this license, the company will release insurance products to consumers in India. Initially, the company will offer policies across four categories, two-wheeler and four-wheeler vehicles, health and life.
Paytm Insurance Broking has already established partnerships with 20 insurance firms in India and will integrate with 30 more companies in the next few weeks.
Its move into the insurance space began three years ago when it offered attachment products to Paytm transactions.
Over the past few months, the company has been working to meet the customer needs and offer a streamlined digital journey. In that vein, the company will also be offering policy management and claim services to customers.
To further support its insurance division, the company is leveraging its merchant partner base, which is around 16 million, to sell its insurance products across India.
The company is looking to build a network of point of sale persons (PoSPs) which will increase the reach of the insurance products. Merchants will also be able to use this to have alternative income sources which lets them earn commissions on selling insurance products. To support this, Paytm is shortlisting merchant partners to be trained as PoSPs.
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