Almost 40 banks have evinced interest to open up their branch network to extra one insurance company in the life, non-life and health segments. From April 1, new rules for corporate agency channels will come into place. Nilesh Sathe, member (life) at the Insurance Regulatory and Development Authority of India (Irdai), said still those banks that are supporters of insurance companies have articulated interest to go after an open architecture.
This means those with no bank partners or promoters can tie up with these banks. This will help them reach consumers in all over the country through these bank branches.
As per the rules of corporate agency, banks can tie up with up to three life, three non-life and three individual health insurers to sell their insurance products. However, with banks being given the final liability on any policy they sell, experts say the opening up may not provide any results in the near term.
Irdai has said that from FY17, bank boards will be essential to give a clear plan as to how and by when will they open up their branch network to further than one insurance company in each category — life, non-life and health insurance.