Paytm ditches insurance license to focus on distribution strategy.

June 2, 2024
1 min read


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Paytm has withdrawn its application for a general insurance license and will focus on a distribution-only model for small-ticket insurance products.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.


Latest from Blog

Your Daily InsurTech Briefing – 2024-06-24

Let’s see what’s in the news today. Labor Insurance Supplies Market Latest Trends, Technological Advancement, Driving Factors and Forecast to 2030 The Labor Insurance Supplies Market has witnessed continuous growth in the

CRC Group boosts leadership team

TLDR: CRC Group, a leading wholesale specialty insurance distributor in North America, has appointed three new executives to its leadership team. Jessica Marshall is now the chief marketing officer, Mike Baeurle is

Your Daily InsurTech Briefing – 2024-06-23

Let’s see what’s in the news today. Why actuarial expertise is now key for insurers As the insurance sector undergoes a rapid evolution in regard to its pricing challenges, José María Castelo

Technology claims: industry adapts.

Claims Technology Adaptation in the Insurance Industry TLDR: Key Points: Rapid advancements in Insurtech and technology have disrupted the insurance industry, particularly in claims processing. The adoption of technology in claims processes,