Insurance Flipkart to sell insurance, to foray soon into MF distribution

Flipkart to sell insurance, to foray soon into MF distribution

The company has received corporate agency license from IRDAI.
Nishant Patnaik Oct 8, 2018

Come October 10, investors can buy insurance policies while they shop on the big billion-day Flipkart sale.

India’s largest e-commerce giant Flipkart has received corporate agency license from IRDAI on September 26 and will soon start distribution of insurance policies. IRDAI has given composite license to Flipkart that allows the company to sell insurance policies of three life, three non-life and three stand-alone health insurance policies.

Flipkart will mainly face competition from banks, as most of the banks are corporate agents. Currently, there are over 400 corporate agents in India.

A newspaper report published in ‘The Economic Times’, says that Flipkart has partnered Bajaj Allianz General Insurance to offer customised insurance solutions to power its mobile phone protection programme for all leading mobile phone brands that are sold on its platform.

To begin with, Flipkart is said to target its sellers to distribute financial products.

Chinese e-commerce giant Alibaba followed a similar strategy where they  deployed the surplus funds of their sellers in liquid funds through their wealth advisory arm Ant Financials (then Alipay), which proved to be a big success. Later, the company expanded their distribution business by offering other mutual fund schemes and financial products.

Other e-commerce giants already own stake in online distribution and robo advisory firms e.g.  Amazon in BankBazaar and Snapdeal in Rupeepower.

Recently, One97 Communications more popularly known as Paytm Money received the corporate agency license to solicit insurance policies. In fact, the company has started its mutual fund distribution business.

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Hemant Arora · 6 months ago
This step of selling MF by Flipkart & Paytm will prove very healthy for the IFA's,as it will create awareness among the people,which otherwise are not so aware.In the long run it will prove fruitful to both investors & AMC
Hunny chawla · 6 months ago
Welcome move!! Good for IFAs. ultimately people will understand difference between advisory and Product buying.
Prashant · 6 months ago
Solicit insurance? Does banks know the meaning of solicitation and will these companies what is solicitation? Also all brokers sell the products of those companies which give them highest commissions and corporate agents sell policies which give them highest commissions. Only and only agents are genuine people( most of us barring few whereas all brokers and banks are missellers only).
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