IRDA is currently reviewing the existing Banacassurance model (agency distribution arrangements through banks) and has set-up a seven-member committee to study the subject. Mr Kannan said that the regulator was aiming for an open architecture and added that the tie ups between banks and insurance companies must be operationally feasible, administratively possible and at the same time must also take care of policyholders’ interests.
Insurance Regulatory and Development Authority is considering whether to allow products. IRDA Member (Actuary) R Kannan told reporters here in Mumbai, “Initially, we will be a little cautious… it (tie-ups of banks with insurance companies can be two or three. We will then revisit the experience and come back.
IRDA is currently reviewing the existing Banacassurance model (agency distribution arrangements through banks) and has set-up a seven-member committee to study the subject. Mr Kannan said that the regulator was aiming for an open architecture and added that the tie ups between banks and insurance companies must be operationally feasible, administratively possible and at the same time must also take care of policyholders’ interests.IRDA is also planning to come out with a circular for insurance companies to draft policy documents in regional languages in the next three months and has also set-up a committee to look into the new direct tax code implications for insurance companies.