‘Will expand non-insurance revenue within regulatory limits’: PB Fintech CEO

Irdai’s consultation paper, released last month, proposes opening up the distribution segment to more business and income opportunities through the distribution of non-insurance financial and non-financial products. ”It's a positive opportunity to be able to do non-insurance activities,” Dahiya said, recalling that such activities were permitted in the early 2010s before being discontinued and could potentially be allowed again.

“We have Paisabazaar already ready with lots of products, not just credit, but also the investment products. And we see that as a massive opportunity.” Last month, Dahiya had said that Irdai’s proposals, if implemented in their current form, could force Policybazaar towards insurance manufacturing. The regulator’s proposed commission reforms seek to introduce steep cuts in commission rates across life and non-life insurance products, taking into account the efforts involved in distribution.

PB Fintech shares plunged more than 36% in a single session after the management indicated that the proposed commission caps could reduce the company's core online insurance revenue by around 30% by FY28 while general insurance revenue could see a steeper decline of 33-40%. On the possibility of entering insurance manufacturing, Dahiya declined to elaborate, citing ongoing regulatory discussions, but ruled out acquiring minority stakes in insurance companies.

“There is clear precedent and laws out there. Of course we will engage with the regulator further and seek their guidance,” he said. ‘We are working on three fronts,” Dahiya said, highlighting non-insurance activities, cost discipline and customer focus to navigate the impact. However, he reiterated that Policybazaar would remain focused on insurance and ruled out entering the lending business. “Policy Bazar will continue to be centered on insurance.

It's not a money supermarket. It's an insurance supermarket,” Dahiya said. Dahiya also outlined a 1,000-day plan centred on improving customer service and maintaining cost discipline. “Judge us at the end of 1,000 day period after the day the final regulation comes out,” he said. Meanwhile, PB Fintech’s consolidated net profit rose 42.5% year-on-year to ₹192.4 crore in the September quarter of FY27, compared with ₹135 crore in the corresponding period last year.

Sequentially, net profit increased 18% from ₹163 crore. Operating revenue grew nearly 35% year-on-year to ₹2,177.7 crore during the quarter. Total insurance premium rose 38% year-on-year to ₹9,385 crore. Core online insurance premium also grew 38%, while new protection premium, comprising health and term insurance, increased 42%.