IRDA to cap annual sales by bank-promoted insurers

India Infoline News Service | Mumbai |

IRDA is expected to come out with the final norms soon under which banks will be able to sell insurance products of multiple insurers

The Insurance Regulatory and Development Authority (IRDA) is working on guidelines to cap total annual sales by bank-promoted insurers, according to a media report.

This means banks which opt to be insurance brokers cannot sell products from their own group companies beyond 25% of the total annual sales, the report added.

Banks such as ICICI Bank, HDFC, SBI, IDBI Bank, Bank of Baroda have promoted insurance companies.

With many banks having their own insurance subsidiary or venture, upcoming non-bank promoted insurers are finding it difficult to find distribution partners with a wide network.

In order to prevent mis-selling of policies through the bank channel, IRDA will specify norms which require extensive training of the bank personnel selling insurance products, besides a strict compliance with KYC norms, the report further said.

IRDA is expected to come out with the final norms soon under which banks will be able to sell insurance products of multiple insurers.
 

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