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    Insurance: Irda To Explore New Distribution Channels

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    The Insurance Regulatory and Development Authority of India (Irda) has decided to constitute a working group to study the report of the Govardhan Committee on distribution channels. The committee had examined channels like agency, corporate agency, bancassurance, and direct sales. It made recommendations to make these channels more effective, professional, and accountable. One recommendation was to allow distribution companies to have multiple insurer tie-ups, similar to independent financial advisors. In response, Irda will form a working group of life and non-life insurers to explore introducing a new distribution channel modelled after an insurance marketing firm. The group will submit its recommendations by February 28th.

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    Insurance: Irda To Explore New Distribution Channels

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    karishma2692
    113 views2 pages
    The Insurance Regulatory and Development Authority of India (Irda) has decided to constitute a working group to study the report of the Govardhan Committee on distribution channels. The committee had examined channels like agency, corporate agency, bancassurance, and direct sales. It made recommendations to make these channels more effective, professional, and accountable. One recommendation was to allow distribution companies to have multiple insurer tie-ups, similar to independent financial advisors. In response, Irda will form a working group of life and non-life insurers to explore introducing a new distribution channel modelled after an insurance marketing firm. The group will submit its recommendations by February 28th.

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    Goverdhan Commitee

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    Govardhan Committee

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    The Insurance Regulatory and Development Authority of India (Irda) has decided to constitute a working group to study the report of the Govardhan Committee on distribution channels. The committee had examined channels like agency, corporate agency, bancassurance, and direct sales. It made recommendations to make these channels more effective, professional, and accountable. One recommendation was to allow distribution companies to have multiple insurer tie-ups, similar to independent financial advisors. In response, Irda will form a working group of life and non-life insurers to explore introducing a new distribution channel modelled after an insurance marketing firm. The group will submit its recommendations by February 28th.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    113 views2 pages

    Insurance: Irda To Explore New Distribution Channels

    Uploaded by

    karishma2692
    The Insurance Regulatory and Development Authority of India (Irda) has decided to constitute a working group to study the report of the Govardhan Committee on distribution channels. The committee had examined channels like agency, corporate agency, bancassurance, and direct sales. It made recommendations to make these channels more effective, professional, and accountable. One recommendation was to allow distribution companies to have multiple insurer tie-ups, similar to independent financial advisors. In response, Irda will form a working group of life and non-life insurers to explore introducing a new distribution channel modelled after an insurance marketing firm. The group will submit its recommendations by February 28th.

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    Insurance

    Irda to explore new distribution channels


    feBureau | Hyderabad | Updated: Jan 24 2014, 21:17 IST

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    Insurance regulator Irda has


    decided to constitute a working group to study the report of the Govardhan Committee.
    SummaryThe committee had since submitted its report to the authority.
    Insurance regulator Irda has decided to constitute a working group having five members each from
    life and non-life companies to study the report of the Govardhan Committee on distribution channels
    and explore the possibility of
    introducing a new distribution channel on the lines of insurance marketing firm (IMF).
    The regulator had constituted a committee under the chairmanship of NM Govardhan, former chairman
    of LIC during September, 2007, to look into distribution channels - agency, corporate agency,
    bancassurance, referrals, direct sales, etc. The committee was asked to study and ascertain the manner
    in which these channels have been functioning - their efficacy, cost effectiveness, weaknesses and make
    recommendations on the changes to be made to make them effective, professional, accountable and

    serve the interests of the insured and facilitate provision of services all over the country in a costeffective manner, even for the low priced insurances.
    The committee had since submitted its report to the authority. One of the issues considered by the
    committee was to allow distribution companies to have multiple tie-ups with insurers, a model akin to
    independent financial advisors (lFA). "The authority has conducted meetings with representatives of life
    and non-life insurance companies and the issue of IMF was discussed at length. During the meetings, it
    was decided to constitute a working group having five members each from life and non-life companies
    to study the report of the Govardhan Committee and explore the possibility of introducing a new
    distribution channel on the lines of IMF,'' an Irda order said.
    The group will submit its recommendation by February 28, 2014, to the authority, the Irda order added.
    The group will study on the issue and recommend to the authority on the few issues of the proposed
    model of IMF. This includes: Requirement of capital, geographical spread within which the IMF can
    operate, distribution costs/remuneration/incentives to be paid to the IMF, fit and proper criteria, quality
    standards; training and recruitment of sales persons; and process of sales.
    Further, the working group will have the following members, which include: Rajesh Sud, CEO, Max Life
    lnsurance; P Nandagopal, CEO, IndiaFirst Life

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