{"id":8184,"date":"2021-09-04T06:11:23","date_gmt":"2021-09-04T06:11:23","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=8184"},"modified":"2021-09-04T06:11:26","modified_gmt":"2021-09-04T06:11:26","slug":"irdai-issues-insurance-broker-license-for-phonepe","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/irdai-issues-insurance-broker-license-for-phonepe\/","title":{"rendered":"IRDAI Issues an Insurance Broker License for PhonePe"},"content":{"rendered":"\n<p class=\"has-drop-cap\">On August 30 2021, IRDAI issues an Insurance Broker License for PhonePe. Last year, PhonePe had entered the insurance sector with an insurance corporate agent license, which allowed the company to associate with only three categories of insurance companies such as health insurance, general insurance, and life insurance. With this <strong><a href=\"https:\/\/swaritadvisors.com\/insurance-broker-license\" class=\"text-primary\">Insurance Broker License<\/a><\/strong>, the company can distribute insurance products from all insurance companies all over India.<\/p>\n\n\n\n<p>By issuing Insurance Broker License for PhonePe by IRDAI, they can begin offering personalised product recommendations to its more than 300 million users in India and providing a much more varied portfolio of insurance products for Indian consumers. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ab3963442a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ab3963442a\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/irdai-issues-insurance-broker-license-for-phonepe\/#Insurance_Broker_License_%E2%80%93_An_Overview\" title=\"Insurance Broker\nLicense \u2013 An Overview\">Insurance Broker\nLicense \u2013 An Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/irdai-issues-insurance-broker-license-for-phonepe\/#PhonePe_%E2%80%93_About\" title=\"PhonePe \u2013\nAbout\">PhonePe \u2013\nAbout<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/irdai-issues-insurance-broker-license-for-phonepe\/#Insurance_Broker_License_for_PhonePe_%E2%80%93_Background\" title=\"Insurance Broker License for PhonePe \u2013 Background\">Insurance Broker License for PhonePe \u2013 Background<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/irdai-issues-insurance-broker-license-for-phonepe\/#Business_Model_of_PhonePe_Include_Various_Financial_Services\" title=\"Business Model\nof PhonePe Include Various Financial Services\">Business Model\nof PhonePe Include Various Financial Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/irdai-issues-insurance-broker-license-for-phonepe\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Insurance_Broker_License_%E2%80%93_An_Overview\"><\/span>Insurance Broker\nLicense \u2013 An Overview<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before\nwe move forward to the latest news regarding IRDAI issued an Insurance Broker\nLicense for PhonePe, it is necessary to know about Insurance Broker License. An\nInsurance Broker is a company or an individual that protects policies for the\nclient; Insurance Brokers would protect commission from an insurance company on\nvarious types of policies they offer customers. A company that wants to become\nan Insurance Broker would have to apply to the IRDAI for a license.<\/p>\n\n\n\n<p>There are specific prescribed rules regarding Insurance Brokers in India. Such rules are planned by the IRDAI. These rules would comprise the <strong><em>IRDA Act, 1999<\/em><\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.irdai.gov.in\/ADMINCMS\/cms\/frmGeneral_Layout.aspx?page=PageNo108&amp;flag=1\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> and <strong><em>IRDAI (Insurance Brokers) Regulations, 2018<\/em><\/strong>. Thus, once an Insurance Broker License is protected by the applicant, they would have to comply with the necessities of the above rules &amp; laws. A broker would act as a mediator between the public and insurance companies. <\/p>\n\n\n\n<p>There\nare three different types of Insurance Brokers in India:<\/p>\n\n\n\n<ol><li>Direct Brokers<\/li><li>Re-insurance Broker<\/li><li>Composite Broker<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"PhonePe_%E2%80%93_About\"><\/span>PhonePe \u2013\nAbout<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>PhonePe\nis a mobile payment platform where you can transfer money by using UPI, pay\nutility bills, recharge phones, and many more. It works on the <strong><em>UPI\n(Unified Payment Interface)<\/em><\/strong> system, and all you need to feed in your\nbank account information &amp; create a UPI ID. There is no requirement to\nrecharge the wallet because the money will be directly deducted from your bank\naccount at one click in a secure and safe manner.<\/p>\n\n\n\n<p>The\nmobile application of PhonePe is safe &amp; secure that will help provide all\nyour banking requirements under a single roof in a suitable manner. You don&#8217;t\nneed to go through the burdensome process of registering a beneficiary; all you\nneed to get is a <strong><em>VPA or Virtual Payment Address<\/em><\/strong> using which money can be sent at\nany time and from anywhere.<\/p>\n\n\n\n<p><strong>Phonepe App<\/strong><\/p>\n\n\n\n<p>PhonePe\nPrivate Limited is the foremost e-commerce payment platform in India. The\ne-wallet company was established in 2015. This e-commerce payment platform\noffers different services in over 11 languages. As a user, you can use the app\nand pay the bills, buy tickets, book cabs, etc. You can carry out transactions\nin the app by various methods like UPI Credit Card, UPI Debit Card, through\nlinked Bank Account, using PhonePe Wallet.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Insurance_Broker_License_for_PhonePe_%E2%80%93_Background\"><\/span>Insurance Broker License for PhonePe \u2013 Background<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Last\nyear in January, 2020 PhonePe forayed into the insurance sector as a corporate\nagent and has since launched offering various insurances. The great response of\nits initial insurance product launches from millions of clients boosts the\ncompany to apply for an Insurance Broker License so it can quickly expand its\ninsurance offering for customers, as said by PhonePe.<\/p>\n\n\n\n<p>As\nwe already know that PhonePe is the fastest growing insurtech in India, and\nthis move to broking will give them more speed and boost their growth in the\ninsurance sector. They are building a strong, full-service platform for their\nhighly engaged client base via innovative products in partnership with\nhigh-quality insurers. The Vice President and Head of Insurance at PhonePe Mr.\nGunjan Ghai, said, <strong><em>&#8220;This step will lead us closer to our target of becoming a one-stop\ndestination for all the insurance needs for our clients\u201d.<\/em><\/strong><\/p>\n\n\n\n<p>Also,\nlast year, <strong><em>One97 Communications Ltd<\/em><\/strong>. received its Insurance Broker License\nfrom the <strong><em>IRDAI (Insurance Regulatory &amp; Development Authority of India), <\/em><\/strong>allowing\nit to offer various insurance products such as health, life, and auto.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_Model_of_PhonePe_Include_Various_Financial_Services\"><\/span>Business Model\nof PhonePe Include Various Financial Services<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According\nto Mr. Ghai, the company is developing a complete full-service platform for its\nclient base by collaborating with high-quality insurers to create unique\nsolutions. The network has an exceeding 20 million users, with 80% of them from\nNon-Metropolitan areas.<\/p>\n\n\n\n<p>As\nper reports, the goal of the company is to achieve 900 million people in the next\n8 to 10 years. In 2021, the PhonePe entered the financial sector with the\nintroduction of gold, giving customers a safe and fitting way to get 24-K gold\non their website. It has also developed a number of mutual funds &amp;\ninsurance products, including liquid funds, foreign travel insurance,\ntax-saving funds, and Corona Care, a Covid-19 specific insurance programme. It\nalso debuted its Switch platform in 2018, permitting customers to order from\nover 600 applications directly from the PhonePe mobile app, comprising Swiggy,\nMyntra, RedBus, IRCTS, OLA, and many more. For the last five years, PhonePe has\nsupported 8-10 languages. Currently, the company completed five years on 28\nAugust 2021.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Earlier, the PhonePe had a limited insurance corporate agent license which allowed them to collaborate with only three insurance companies. But, after getting Insurance Broker License for PhonePe by IRDAI, they will be able to offer more insurance products to their users across India.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/insurance-companies-foreign-investment-amendment-rules-2021\/\">Insurance Companies (Foreign Investment) Amendment Rules 2021 \u2013 An Overview<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On August 30 2021, IRDAI issues an Insurance Broker License for PhonePe. Last year, PhonePe had entered the insurance sector with an insurance corporate agent license, which allowed the company to associate with only three categories of insurance companies such as health insurance, general insurance, and life insurance. With this Insurance Broker License, the company [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":8185,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[44],"tags":[838],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/8184"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=8184"}],"version-history":[{"count":8,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/8184\/revisions"}],"predecessor-version":[{"id":8194,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/8184\/revisions\/8194"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/8185"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=8184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=8184"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=8184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}