One97 Communications, the parent company of Paytm, announced that it will concentrate on distributing insurance products from various insurers following the Insurance Regulatory and Development Authority of India’s (Irdai) acceptance of Paytm General Insurance Limited’s (PGIL) request to withdraw its application for a general insurance license.

Paytm General Insurance had initially sought to register as a general insurance company to manufacture insurance products. However, the company decided to withdraw this application, and Irdai approved the withdrawal on June 12, 2024.

In light of this development, Paytm will enhance its efforts to distribute insurance across health, life, motor, shop, and gadgets segments through its subsidiary Paytm Insurance Broking Private Ltd (PIBL). "This move aligns with our strategy to focus on insurance distribution, leveraging Paytm’s robust platform to increase penetration", said Paytm.

Paytm aims to innovate with small-ticket insurance products for both consumers and merchants, emphasizing its goal to make insurance more accessible and widespread. By partnering with various insurers, Paytm plans to enhance its offerings and utilize its extensive distribution network to reach a broader audience, thereby contributing to increased insurance adoption in India.