IRDAI has constituted a six-member committee to float insurance service centres across the country to increase touch points for policyholders in a cost effective manner.
These service centres will be company neutral which means they will accept request forms of all insurance companies from policyholders and submit them to their respective insurance companies. Simply put, these service centres are expected to act as registrar and transfer agents, say industry experts. However, it is not clear if these service centres will be allowed to distribute insurance policies to the policyholders directly.
In its order, IRDAI has said, “One of the approaches that can be considered is to have service centres that are company neutral. These service centres will not only increase the touch points that will become available to the customers but will bring insurance at the doorstep of the customer. The insurance companies would also gain by saving on investments to be made in the traditional brick and mortar offices.”
The committee will evaluate legal form, capital requirements, geographical spread, operational model, cost structures and revenue model, service standards including turnaround times, fit and proper criteria, interface with the insurance and system integration and other issues related to establishment of these service centres.
The IRDAI committee headed by Rajesh Relan, former Managing Director, PNB Metlife Insurance Company, is expected to submit its recommendations on this by April 15 2016. Other members of the committee include Munish Sharda, CEO, Future Generalli Life Insurance, Neelesh Garg, CEO, Tata-AIG General Insurance, Anuj Gulati, CEO, Religare Health Insurance, R Jayaprakash, Development Officer, LIC India and Bindu Sukeshni, former Compliance Officer, Tata Motors Insurance Broker.
