Policybazaar CEO Sarbvir Singh Announces Plans to Enter Healthcare Sector by FY26

Policybazaar CEO Sarbvir Singh has unveiled plans to expand the company’s operations into the healthcare sector by FY26. The goal is to create an alternative healthcare model that goes beyond just initial healthcare costs, addressing the overall well-being of the customer. This new initiative aims to reduce healthcare costs while offering a more comprehensive approach to health, focusing on preventive care, secondary care, and tertiary care.

Strengthening Footing in Lending: A Shift Towards Secured Loans

Policybazaar’s lending platform, Paisabazaar, is undergoing a significant transformation. The platform, which has historically been centered around unsecured loans, is now pivoting towards a more balanced approach that includes both secured and unsecured loans. The company aims to optimize its loan offerings, ensuring a better mix as it moves forward into FY26.

Sarbvir Singh highlighted that Paisabazaar is digitizing its operations to streamline the lending process, making it more straightforward for users to secure loans through the platform. The shift towards secured loans, though currently resulting in fewer inquiries, is expected to have a larger ticket size, ultimately benefiting the business as the loan portfolio becomes more balanced.

Focus on Corporate Insurance and Expansion into Dubai

As Policybazaar gears up for FY26, the company is looking to expand its presence further in the corporate insurance space. The introduction of a corporate insurance business is part of a broader strategy to diversify revenue streams and enhance the company’s overall financial growth. Additionally, Policybazaar is continuing its successful expansion in Dubai, where the platform is growing its customer base and offering more services.

Efforts to Operationalize the Account Aggregator Platform

While the account aggregator platform is a relatively small portion of Policybazaar’s overall business, it plays a crucial role in enabling the platform’s main operations. Policybazaar is working on operationalizing this platform, which will help streamline financial management and lending operations. However, the company’s focus remains on its core business areas, with a growing emphasis on insurance and lending.

Turning to Healthcare: Preventive, Secondary, and Tertiary Care

The company’s planned expansion into healthcare will aim to reduce costs across the industry. By focusing on overall health and well-being, rather than just treating initial health concerns, Policybazaar seeks to revolutionize the way healthcare services are provided. This shift includes offering services such as preventive care, helping customers manage their health proactively, and guiding individuals on when hospital care is needed versus home treatment.

New Business Initiatives for FY26: International Expansion and Corporate Insurance

In FY26, Policybazaar plans to focus on three key new business initiatives. First, the company’s presence in Dubai is expanding, and it continues to grow in the corporate insurance broking space. Policybazaar is also focusing on helping insurance agents become more efficient through PB Partners. As these ventures develop, they are expected to increase revenue and improve EBITDA outcomes for the company.

Path to Improved Profitability: Renewed Focus on the Back Book

Sarbvir Singh discussed how Policybazaar's profitability has improved, thanks to the company’s strong back book, which has a high renewal rate and low loss ratios. As the company continues to grow, it expects this trend to continue, contributing positively to its bottom line. The company is confident that, as fixed costs grow slower than revenue, profitability will continue to rise.

Maintaining Profitability: Optimizing Revenue and Cost Management

Policybazaar has recently turned positive in terms of profitability, with expectations that this trend will continue in the long run. The company’s strategy is straightforward—maintaining profitability through careful revenue management and cost control. Singh expects the company to continue generating significant financial growth, with a Rs 150 crore-plus delta expected in the coming years.