As part of the agreement, IPO-bound LIC’s products will now be available on the online insurance policy aggregator’s platform
Shares of PolicyBazaar’s parent PB Fintech rose nearly 4 percent to the day’s high of Rs 972.4 on NSE in the morning trade on February 4 and closed in on the initial public offer price of Rs 980 a day after the company announced a partnership with life insurance giant LIC.
As part of the agreement, IPO-bound LIC’s products will now be available on the online insurance policy aggregator’s platform and help it expand its reach.
The partnership will also see state-run insurers use a private aggregator to distribute its products to further boost its online presence.
LIC, the country’s pioneer in life insurance, and Policybazaar.com have joined hands to offer a wide range of term and investment products to consumers,” a joint statement by both the companies said on February 3.
The partnership is seen as highly beneficial for PolicyBazaar. Ahead of the company’s IPO, analysts had pointed to a potential partnership with LIC as a key catalyst for the further growth of the online platform.
In a report in November, brokerage firm JM Financial had said that if LIC comes on-board even by FY24, “we see digital penetration in life insurance reaching up to 4.4 percent by FY31 and Policybazaar’s market share of overall digital insurance distribution also rebounding to reach 47.3 percent by FY27”.At 10.8 am, Shares of PB Fintech, however, pared some of the gains and were trading 1.5 percent higher at Rs 950.6 on the National Stock Exchange.
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