IRDAI has constituted a taskforce to ensure making available insurance products to the nook and corner of the country by leveraging the vast bank branch network. While banks have the option to set up a separate legal entity for distribution of insurance products as Insurance brokers, till date, such option has not been exercised by banks.
The terms of reference of the task force are as under:
- To suggest regulatory stipulations on the market conduct requirements of bancassurance partners, especially in view of mis-selling/forced selling complaints being received in this distribution model.
- To study the effectiveness of existing bancassurance model of insurance intermediation and recommend ways and means of improving the efficiency of the same iii) To examine the international best practices in this model and suggest suitable modifications, if any, to the domestic regulatory requirements iv) Any other relevant matter referred to this task force
The task force shall submit their recommendations within a period of two months from the date of this order.
