Online payments major Paytm plans to apply for a licence to operate life and general businessses, people aware of the matter said.
Paytm, which has set up two separate entities named Paytm Life Insurance and Paytm General Insurance, will file an application with the IRDAI for approval for the operations. Paytm’s move to chase the overall consumer finance sector is aimed at accelerating growth in its non-payments business, reported Times of India.
Backed by Japan’s Soft-Bank, Paytm will have to go through multiple levels of regulatory checks which may take another year before it starts offering its own insurance plans, people familiar with the matter said. At present, Paytm runs as a corporate agent for group insurance on its platforms in partnerships with insurers.
E-commerce major Amazon and Flipkart are also aiming for a slice of the Indian insurance market. Amazon was reportedly in talks to invest in an online only insurance startup Acko. The deal, if it goes through, will see Amazon co-create financial products with Acko, besides being its distributor.