Insurance Regulatory and Development Authority of India (IRDAI), over the next three to four weeks, plans to finalise the norms for corporate agents under bancassurance.
Insurance Regulatory and Development Authority of India (IRDAI), over the next three to four weeks, plans to finalise the norms for corporate agents under bancassurance. The draft guidelines says corporate agents, instead of having tie-ups with a minimum of two insurers, may now choose from one to a maximum of three insurers in any particular line of the business.
As of now, banks are permitted to function as a corporate agency for only one insurer each in life and non-life sectors. “The guidelines have been approved by the board. After the approval, it has to go through the legal vetting before coming to the gazette,” said TS Vijayan, IRDAI chairman, on Thursday, after launching the sale of insurance policies of HDFC Life through common service centres (CSCs). The proposed norms will be effective from April 1, 2016, he added.
“The notification may come in three to four weeks time. But insurance companies will be given some time to adjust with the new norms. From April 1, the new norms will be in full force,” he added.
On the insurance industry, Vijayan said the sector may grow 15% in the current financial year. The domestic life insurance sector is biggest in the world with about 36 crore policies which are expected to increase at a compound annual growth rate (CAGR) of 12-15% over the next five years. The insurance industry plans to increase reach to 5% by 2020 and could top the $1-trillion mark in the next seven years, says an India Brand Equity Foundation (IBEF) report.