SUBSCRIBE NEWSLETTER
  • Change Language
  • English
  • Hindi
  • Marathi
  • Gujarati
  • Punjabi
  • Tamil
  • Telugu
  • Bengali
  • Insurance IRDAI to simplify norms to attract more agents/intermediaries

    IRDAI to simplify norms to attract more agents/intermediaries

    The insurance regulator will review the existing guidelines for agents, broker and other intermediaries.
    Nishant Patnaik Jan 24, 2024

    Listen to this article

    IRDAI has proposed revision of regulations with respect to appointment of insurance agents and registration of other intermediaries like corporate agents, insurance marketing firms and insurance brokers.

    The aim is to simplify the existing norms and attract a greater number of agents and intermediaries. 

    In a minutes of the board meeting released recently, IRDAI said, “It was presented that the Powers of the Authority under the following regulations which were delegated in the earlier Authority meetings are proposed to be revised for speedier disposal of the matter and to ensure operational efficiency, while also seeking delegation of powers in few stipulations afresh.”

    As part of this initiative, IRDAI will review 10 regulations impacting distribution landscape like IRDAI (Insurance Brokers) Regulations, 2018, IRDAI (Registration of Corporate Agents) Regulations, 2015, IRDAI (Appointment of Insurance Agents) Regulations, 2016, IRDAI (Registration of Insurance Marketing Firm) Regulations, 2015,

    IRDAI (Web Aggregators) Regulations, 2017, Guidelines on Insurance e-commerce, 2017 and Guidelines on Motor Insurance Service Provider, 2017.

    The insurance regulator has also informed the members of insurance advisory board that the AUM of the industry has reached Rs.60 lakh crore in March 2023 from Rs.54 lakh crore in March 2022, a growth of 11%.

     

    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

    Click to clap
    Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.
    1 Comment
    InvestAir Funds · 8 months ago `
    Why don't the Insurance Industry introduce concepts like Insurance Distributors (in line with Mutual Fund Distributors) instead of Agents and Insurance Brokers? In the financial landscape, the distinction between Mutual Fund Distributors (MFDs) and traditional agents or brokers is significant. The insurance industry should adopt an MFD-like concept instead of an Agent/Broker to distribute Insurance. Some points to show the difference between the services of MFDs and Agents are here :

    πŸ‘‰ Scope of Services:

    MFDs: These professionals facilitate the sale of mutual fund products across various Asset Management Companies (AMCs). They provide clients with access to a wide array of investment options.

    Insurance Agents: In contrast, insurance agents typically represent a single Life or General Insurance Company. Their focus is limited to selling policies from that specific insurer.

    πŸ‘‰ Client Perspective:

    MFDs: Clients who engage with MFDs benefit from a broader spectrum of investment choices. MFDs can guide them through the entire mutual fund landscape.

    Insurance Agents: While insurance agents play a crucial role, their offerings are confined to the products of a single insurance company. This model may not always align perfectly with the client’s best interests.

    πŸ‘‰Agent Mobility:

    Challenges for Insurance Agents: When an insurance agent transitions to another insurance company, existing clients may face disruptions. The agent’s departure can impact the continuity of service and personalized advice.

    MFDs and Mutual Funds: In the mutual fund space, an MFD need not switch as it can work with multiple AMCs. Clients can continue their investment journey seamlessly, as MFDs operate across multiple AMCs. Moreover, even if an MFD has switched to another business, the clients are not affected and can service their investments online, through AMCs and RTAs. They may even take guidance from their erstwhile MFD or new MFDs.

    πŸ‘‰ Comparing Services:

    Mutual Fund AMCs vs. Insurance Companies: Clients often notice differences in service quality between Mutual Fund AMCs (or Registrar and Transfer Agents, RTAs) and insurance companies. While both sectors aim to serve investors, the level of service and transparency can vary.

    In summary, the industry’s move toward MFDs-like Insurance Distributor aims to enhance investor choice, streamline services, and prioritize client welfare. However, ensuring consistent quality across all financial intermediaries remains a critical goal for investor protection.
    Login or Sign up to post comments.
    More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

    Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.
    Cafemutual is an independent media platform and focuses on providing knowledge and information for the benefit of finance professionals. We do not promote any particular brand or asset category.