PB Fintech, known for operating insurance and credit aggregator platforms like PolicyBazaar and PaisaBazaar, on Monday, September 11, issued a clarification regarding its plans in the insurance sector. The company said it had no intentions of becoming a direct insurer or applying for such a license, emphasising its commitment to maintaining a harmonious relationship with existing insurance partners.
The clarification came days after CNBC-TV18 reported that PB Fintech is looking at bringing some significant diversification into its business lines. The report mentioned that the company is exploring options to enter the insurance manufacturing market.
CNBC-TV18's sources also pointed out that PB Fintech would look to start its reinsurance business by itself without having a foreign or domestic partner and only at a later stage of the business cycle explore the possibility of getting investments from a foreign or an Indian partner in its reinsurance business.
Responding to this, brokerage firm Morgan Stanley said, "The reinsurance market in India could be an interesting opportunity, unlike direct insurance which is a crowded market. PB Fintech has certain advantages in terms of access to significant data and better perspective, being a distributor. However, this is a risk and capital-consuming business, unlike its asset-light and low-risk distribution business; the latter commands much higher valuation multiples. Hence, we will reserve our opinion until there are more details from the company regarding the expected scale of operations, capital investment, etc."
First Published: Sept 11, 2023 10:36 AM IST
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