InvestorQ : What could be the implications of Paytm getting the insurer broker license from the IRDA and will it impact the prospects of Paytm?
vidhya Laxmi made post

What could be the implications of Paytm getting the insurer broker license from the IRDA and will it impact the prospects of Paytm?

Answer
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6 months ago


Paytm was already a corporate agent but has now secured the license to act as an insurance broker. The difference is more to do with the scale of business that it can do. For example, as a corporate agent, Paytm can only handle 3 life insurers and 3 general insurers and this limits the products that they can sell in the market. However, as a licensed insurance broker, Paytm can sell insurance products of all the insurers on its platform. The Paytm platform has picked up in a big way ever since the digital push was given post demonetization. With its vast captive audience that is already digitally savvy, the Paytm wallet can now be used for buying insurance in just one click. In terms of distribution, this can make a big difference to the financial business front end of Paytm.