India to improve bancassurance regulation

The Indian regulator (IRDAI) has decided to review the current bancassurance intermediation model. This is intended to improve regulation and increase the efficiency of this distribution channel.

The results for the year ending March 2023 indicate that bancassurance accounts for 5.93% of non-life premiums and 17.44% of new life underwriting.

A task force made up of representatives from IRDAI, banks and insurance companies has been specifically set up to address this issue. This newly formed team will be working towards introducing international best practices into local regulations.

The task force was given a two-month deadline starting 31 October 2023 to submit its recommendations.