Insurance Regulatory and Development Authority of India constitutes task force to review bancassurance norms

The Insurance Regulatory and Development Authority of India (IRDAI) has constituted a taskforce to look into various aspects of the bancassurance channel, including mis-selling. “Despite the large network of banks through their branches across the country, banks as corporate agents contribute only 5.93 per cent of non-life premiums and 17.44 per cent of new business premiums for life insurance. To achieve this objective, the regulator felt that it is important to review the existing bancassurance intermediation model and take into account the interests of policyholders. Focusing on safety, it was 'necessary' to make amendments, if any, to the regulatory framework governing it. The terms of reference of the taskforce specifically included the market conduct of bancassurance partners in the wake of complaints of mis-selling and forced selling. The requirements include suggesting regulatory conditions, studying the effectiveness of the channel's existing model, and recommending ways and means of improvement. To examine the efficiency and international best practices in this model and suggest suitable modifications.