Gurugram-based insurance marketplace InsuranceDekho has received a combined insurance brokerage license from the Insurance Regulatory and Development Authority of India. This will allow the company to offer reinsurance services to customers other than insurance brokers.

Reinsurance is a system whereby some of the risks on an insurance company's books are transferred to another insurance company.

“Our goal is to leverage our technological prowess and deep industry expertise to bring enhanced value to our clients and partners. This approach not only improves the insurance landscape but also strengthens our market position,” InsuranceDekho chief executive Ankit Agrawal says.

InsuranceDekho joins rival marketplace Policybazaar, which received basic approval to launch its reinsurance brokerage business in February of this year.

InsuranceDekho operates an insurance marketplace, selling insurance products to consumers through agents; Policybazaar was primarily an online and telecall-driven insurance marketplace but expanded into an agent-driven business about a year ago. Another major company operating in this space is Turtlemint.

InsuranceDekho processed about Rs. 3,300 crore in premiums for insurance companies last fiscal year and expects to boost this figure to Rs. 5,000 crore over the next year. The SME business is one of the fastest growing areas for the company, recording Rs. 30 billion in premiums in FY24.

InsuranceDekho is directly integrated with 48 insurance companies and offers more than 630 insurance products across categories including auto, health, life, fire, and marine.

“The composite insurance broker licence will enable the company to leverage its technology and data analytics to place reinsurance business at competitive prices. This move will aid in expanding contribution margins and directly increase the Ebitda margin for InsuranceDekho” Agrawal says.