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IRDAI Chairman Debashish Panda said that the insurance regulator is considering allowing perpetual license for distributors. He was speaking at the CII Insurance Summit held recently in Delhi.
While distribution license of agents comes with lifetime validity, a few life insurers insist that agents renew it every three years. Other intermediaries like brokers and insurance marketing firms have to renew their license every three years. The proposed perpetual distribution license will do away with the requirement of time to time renewal and ensure long term business continuity.
Further, to meet the distribution challenge, the regulator has increased the number of tie-ups that insurance companies can undertake with banks. Besides, the government is encouraging the use of technology platforms to reduce distribution costs and enhance the affordability of insurance products, said the chairman.
Panda further said that the regulator has moved away from the micro-management of industry expenses, for example the cost of intermediaries, operating cost of management, etc.; created an overall limit for life, non-life, health insurance based on weighted average of 5-6 years, among others. Such reforms have facilitated the ease of doing business, promoted healthy competition and encouraged the use of technology, he added.
Panda said that IRDAI is also working towards creating a UPI-like moment for insurance. This is being proposed through the Bima trinity — Bima Sugam, Bima Vistar and the woman-centric Bima Vahak.
