BofA Securities has maintained its neutral rating on PB Fintech, setting a target price of ₹1,980 per share, implying modest upside from the current market price of ₹1,885.10. The brokerage believes the company’s ongoing transition to the Customer-Owned Relationship (COR) model in health and term insurance positions PolicyBazaar more strongly as a long-term partner to insurers.
According to BofA Securities, concerns around commission caps on insurance distribution are unlikely to materially hurt PolicyBazaar’s business model. The brokerage highlighted that the COR framework, combined with PolicyBazaar’s already lower-than-industry-average commissions, helps mitigate regulatory and margin risks that could affect traditional distributors.
The brokerage also expects Q3 to be a strong quarter, supported by healthy growth momentum across insurance verticals. It noted that operating trends remain favourable despite regulatory changes, with the platform continuing to benefit from scale, data-driven underwriting partnerships, and deeper insurer integration.
Over the longer term, BofA Securities sees the proposed Insurance Bill as a structural positive for the sector, as it is expected to boost insurance penetration in India. This, in turn, should aid PolicyBazaar’s growth trajectory, given its dominant digital distribution presence and alignment with insurer-led product innovation.
Disclaimer: This article is for informational purposes only. The views expressed are those of the brokerage cited and do not constitute investment advice or recommendations.
