Following IRDAI’s approval of withdrawal of its application for general insurance company registration, One 97 Communications Ltd, owner of Paytm, has decided to focus its energies on distribution of third-party insurance products.
The company will focus on small-ticket general insurance offerings of partners, and leverage the strength of Paytm’s distribution to increase insurance penetration to a wider audience, it said in a stock exchange filing.
Paytm aims to innovate on small-ticket insurance products for consumers and merchants alike, it added.
Paytm General Insurance Ltd (PGIL), an associate company of Paytm, has conveyed to One 97 Communications that IRDAI, on Wednesday, has accepted its request for withdrawal of application for registration as a “General Insurance Company”.
The move to withdraw the application for being a manufacturer of general insurance products aligns with Paytm’s focus towards doubling down on insurance distribution across Health, Life, Motor, Shop and Gadgets segments. This is facilitated through its wholly-owned subsidiary, Paytm Insurance Broking Private Ltd (PIBPL), the stock exchange filing added.
Paytm shares were up 6.5 per cent on Thursday in morning trade at ₹ 428.55 after this announcement and also the one on the company’s partnership with Samsung.