PriyaPatel
TLDR:
Paytm has withdrawn its application for a general insurance license and will focus on a distribution-only model for small-ticket insurance products. This move will allow the company to conserve cash and strengthen its partnerships with various insurance companies.
Key Elements of the Article:
- Paytm withdraws general insurance license application
- Focus on distribution-only model for small-ticket insurance products
- Conserving cash and strengthening partnerships with insurance companies
Troubled fintech Paytm has decided to focus on distributing small ticket-size insurance products such as life, health, motor, shop, and gadgets instead of pursuing a general insurance license. The company’s decision to withdraw the application will allow it to conserve Rs 950 crore in cash, previously earmarked for the investment in PGIL. Paytm aims to increase general insurance penetration by leveraging its distribution strength and partnerships with insurance companies such as Digit, Acko, ICICI Lombard, and more. In the quarter ended March 2024, Paytm reported widening losses and a decline in revenue from operations, partly due to regulatory actions against Paytm Payments Bank. Overall, the company is strategically shifting its focus towards a distribution-only model to optimize resources and drive growth in the insurance sector.
