PB Fintech, which operates the insurance marketplace Policybazaar, will look to function as a managing general agent (MGA) once the modalities of the applications are released by the Insurance Regulatory and Development Authority of India (IRDAI).
MGAs, as a concept, did not exist in India. In December 2025, the Union government passed the Amendment of Insurance Laws Bill, 2025. The new law contains an enabling framework for the creation of MGAs.
ET had reported on August 10, 2023, that the first round of discussions between the industry and the insurance regulator had begun on MGAs in the Indian insurance sector.
“I believe MGAs can truly do to insurance what NBFCs did to the banking world. Once the regulator comes out with guidelines, there will be hundreds of them in the country, and we will surely like to be one of them,” said Yashish Dahiya, group chairman, PB Fintech.
The detailed scope of work for an MGA is yet to be outlined, but the government has identified them as intermediaries. Globally, MGAs work closely with insurance companies on risk sharing, underwriting, and other functions. However, in India, the insurance rules draw a line on risks lying only with the insurance companies.
Plans fundraise, acquisitions
In a separate disclosure to the stock exchanges, the company said that it is planning a qualified institutional placement (QIP) to raise fresh funds and undertake new growth initiatives through the acquisition route, perhaps in international markets.
“The MGA business for us is a very India-specific business; the fundraising is not for that. But given our belief in this transformative opportunity, whatever we acquire globally, we will push them towards the MGA model as well,” Dahiya told ET.
Commenting on the overall business performance of PB Fintech, Dahiya said that both term and health insurance products have picked up, and the company has brought 16 lakh new lives under protection to the insurance industry. IRDAI said that around 40 lakh new people were added to the sector in the last one year.
Dahiya spoke with ET after the company announced its December quarter results. It reported a consolidated net profit of Rs 189 crore in the December quarter of the current financial year, up 164% from Rs 71.5 crore a year back.
The company saw its operating revenue climb 37% to Rs 1,771 crore, compared to Rs 1,291.6 crore a year back. Revenues grew primarily on better margins, which stood at 11% compared to 6% last year. It also grew its insurance premium collection at a very fast clip.
However, its expenses went up in the quarter as well, mainly driven by marketing and employee costs. Dahiya said that the company is focussing on promoting four major products across health, term, pension, and children’s education, as all of them are social security products needed by the country’s growing middle class.
The new initiatives under Policybazaar have also done very well, the company said in its quarterly results. Around Rs 2,600 crore of premium collection took place under the new initiatives business, compared to Rs 5,362 crore in the traditional online business.
A significant chunk of this comes from Policybazaar’s point of sales persons (POSP) business, where it competes with the likes of InsuranceDekho and Turtlemint. In the POSP model, PB Fintech works with insurance agents, empowering them to distribute insurance products, mainly auto insurance.
“At the fundamental level, the POSP business is a volume driver and not a very profitable business. This channel does not help grow the market as such; as a standalone business, it is not that profitable,” Dahiya said.
On the credit disbursal side, Paisabazaar, the lending marketplace, has seen its overall loan disbursals rise 84% year-on-year (YoY) to Rs 9,985 crore. The growth primarily came from secured products, the ones newly launched by Paisabazaar.
Commenting on this business, Dahiya said that he is personally not a big fan of secured loans, given there is limited opportunity for a distributor in that business.
“The real opportunity lies in unsecured lending, but given the larger economic conditions, disbursals through our partners are still down,” he added.
Budget 2026
Critics' choice rather than crowd-pleaser, Aiyar says
Sitharaman's Paisa Vasool Budget banks on what money can do for you best
Budget's clear signal to global investors: India means business
ET had reported on August 10, 2023, that the first round of discussions between the industry and the insurance regulator had begun on MGAs in the Indian insurance sector.
“I believe MGAs can truly do to insurance what NBFCs did to the banking world. Once the regulator comes out with guidelines, there will be hundreds of them in the country, and we will surely like to be one of them,” said Yashish Dahiya, group chairman, PB Fintech.
The detailed scope of work for an MGA is yet to be outlined, but the government has identified them as intermediaries. Globally, MGAs work closely with insurance companies on risk sharing, underwriting, and other functions. However, in India, the insurance rules draw a line on risks lying only with the insurance companies.
Plans fundraise, acquisitions
In a separate disclosure to the stock exchanges, the company said that it is planning a qualified institutional placement (QIP) to raise fresh funds and undertake new growth initiatives through the acquisition route, perhaps in international markets.
“The MGA business for us is a very India-specific business; the fundraising is not for that. But given our belief in this transformative opportunity, whatever we acquire globally, we will push them towards the MGA model as well,” Dahiya told ET.
Commenting on the overall business performance of PB Fintech, Dahiya said that both term and health insurance products have picked up, and the company has brought 16 lakh new lives under protection to the insurance industry. IRDAI said that around 40 lakh new people were added to the sector in the last one year.
Dahiya spoke with ET after the company announced its December quarter results. It reported a consolidated net profit of Rs 189 crore in the December quarter of the current financial year, up 164% from Rs 71.5 crore a year back.
The company saw its operating revenue climb 37% to Rs 1,771 crore, compared to Rs 1,291.6 crore a year back. Revenues grew primarily on better margins, which stood at 11% compared to 6% last year. It also grew its insurance premium collection at a very fast clip.
However, its expenses went up in the quarter as well, mainly driven by marketing and employee costs. Dahiya said that the company is focussing on promoting four major products across health, term, pension, and children’s education, as all of them are social security products needed by the country’s growing middle class.
The new initiatives under Policybazaar have also done very well, the company said in its quarterly results. Around Rs 2,600 crore of premium collection took place under the new initiatives business, compared to Rs 5,362 crore in the traditional online business.
A significant chunk of this comes from Policybazaar’s point of sales persons (POSP) business, where it competes with the likes of InsuranceDekho and Turtlemint. In the POSP model, PB Fintech works with insurance agents, empowering them to distribute insurance products, mainly auto insurance.
“At the fundamental level, the POSP business is a volume driver and not a very profitable business. This channel does not help grow the market as such; as a standalone business, it is not that profitable,” Dahiya said.
On the credit disbursal side, Paisabazaar, the lending marketplace, has seen its overall loan disbursals rise 84% year-on-year (YoY) to Rs 9,985 crore. The growth primarily came from secured products, the ones newly launched by Paisabazaar.
Commenting on this business, Dahiya said that he is personally not a big fan of secured loans, given there is limited opportunity for a distributor in that business.
“The real opportunity lies in unsecured lending, but given the larger economic conditions, disbursals through our partners are still down,” he added.