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Insurance Flipkart to sell insurance policies, soon to venture into mutual funds distribution

Flipkart to sell insurance policies, soon to venture into mutual funds distribution

The company’s recent ROC filing said that it would act as a corporate agent to distribute insurance policies.
Team Cafemutual Nov 24, 2017

The competition in the online insurance distribution space is heating up. India’s largest e-commerce giant Flipkart is likely to start distribution of financial products like insurance and mutual funds, say a few media reports.

To start with, the e-commerce firm will start its insurance distribution business. In its RoC filing, the company said, “The company intends to venture into the new line of business viz. solicitation and servicing of insurance policies by acting as a Corporate Agent. In this regard, the company is required to alter its objects clause in order to align its main objects clause in line with the new line of business the company proposes to undertake,” the media report stated.

Currently, corporate agents can sell insurance policies of three life, three non-life and three stand-alone health insurance policies. Flipkart will mainly face competition from banks, as most of the banks are corporate agents. Currently, there are over 400 corporate agents in India.

However, the company has not received a nod from IRDAI. Recently, One97 Communications more popularly known as Paytm received the corporate agency license to solicit insurance policies. With Flipkart following its footsteps, the disruption in the financial services space is certain.

 

 

2 Comments
Prashant · 5 months ago
One more misselling hub is getting created because you hwve written that they want to solicit insurance policies. What is the meabing of solicit? Online policies and policies sold by banks are just not solicitation by any means but it is purely misselling and misselling is not solicitation by any means.
Ashok · 5 months ago
Great opportunity for IFA, initially we might lose business but the reach will be fast later all the people who invest through e-commerce will face advise and service issues and then they will look after IFA and reach us
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