Startups in queue for insurance licence face stricter norms
Irdai) is increasing its scrutiny of venture-funded startups that are aiming to become insurance companies, following the spate of financial irregularities at several new-economy firms, people aware of the matter said.
To begin with, companies seeking a licence are required to liquidate any holding company structures and instead accept investor funding directly in the entity that is submitting the application, they added.
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Offering CollegeCourseWebsiteIIM KozhikodeIIMK Advanced Data Science For ManagersVisitIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitMITMIT Technology Leadership and InnovationVisitIrdai also wants applicants to be backed by a large domestic investor, preferably. And, for the promoter and company founder to have considerable net worth in order to qualify for a licence to manufacture insurance products, according to a person cited above.
Around 19 companies had applied to Irdai for an insurance manufacturing licence at the end of 2023.
On March 23, Irdai granted a licence to Galaxy Health and Allied Insurance Company to offer health insurance. Prior to that, Narayana Health had also secured the regulator’s nod.
However, startups such as Onsurity, Loop Health and Kenko that had also applied for a licence between 2022 and 2023 have been unable to secure approval as yet.
Emailed queries to the Irdai remained unanswered till press time.
“Typically, founders bring in venture investors who hold
