PB Fintech, the parent company of Policybazaar, has signalled its intent to operate as a managing general agent (MGA) in the insurance sector once the Insurance Regulatory and Development Authority of India (IRDAI) notifies the final guidelines. MGAs are specialized intermediaries that handle underwriting and claims on behalf of insurance companies, giving them more operational control than typical brokers.
“I think MGA is the biggest transformation that can happen in the insurance sector, if allowed. And I believe that not just at Policybazaar level, but at a strategic level,” said Yashish Dahiya, co-founder and group CEO at PB Fintech, during a post-earnings call.
Currently, MGAs are not allowed to operate in India. In December 2025, the Centre passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, which recognised MGAs as insurance intermediaries for the first time. However, a final framework governing their operations has not yet been announced.
Addressing analysts during the Q3 FY26 earnings call, Dahiya said MGAs would do to insurance what non-banking financial companies (NBFCs) did to the banking sector.
“See, when the distributor who’s in touch with the consumer, who understands the consumer at that point becomes responsible for both the underwriting and the claim settlement, and at a wholesale level is working with the insurance company…This is exactly what NBFCs were to banking,” he said.
Sarbvir Singh, CEO of Policybazaar, said the MGA model fits neatly into the insurtech company’s business model, noting that it would allow the firm to make decisions on both underwriting and claims.
As an online insurance aggregator, Policybazaar primarily earns revenue through commissions from insurance companies for every policy sold on its platform. It also generates income through policy renewals and lead generation, while offering value-added services such as claim assistance.
Once it starts operating as an insurance MGA, it would be able to undertake additional activities, including helping design insurance products, supporting underwriting, and settling claims on behalf of insurers.
PB Fintech Mulls Fundraising to Pursue Acquisitions
In a separate exchange filing, PB Fintech said its board will meet on Thursday (February 5, 2026) to consider raising capital through a qualified institutional placement (QIP), to fund inorganic growth opportunities. These include potential acquisitions and strategic investments in domestic and international markets. The company added that no specific acquisition target has been identified so far.
During the post-earnings call, Dahiya declined to comment on the size of the proposed QIP, noting that the fundraise is subject to board approval. He added that all of PB Fintech’s businesses, including Paisabazaar and newer initiatives such as PB Partners and PB Pay, are generating cash.
“We may think about investing once we get the…
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