Reliance Life Insurance has welcomed insurance regulator Irda's decision to allow banks to become licensed insurance brokers, saying the move will benefit the sector immensely.
The
Insurance Regulatory and Development Authority (Irda) had last week allowed banks to act as brokers and sell products of more than one insurer so as to increase the penetration of the sector across the country.
According to Irda (Licencing of Banks as Insurance Brokers) Regulations, 2013, there is no capital requirement for insurance broking business carried out by banks.
Reliance Life is already in talks with some private sector, PSU and cooperative banks for a possible tie-up.
"We are happy that Irda has taken an extremely progressive measure in the best interests of hundreds of millions of consumers across all strata of society," Reliance Life Insurance CEO Anup Rau said.
These new regulations will lead to an open bancassurance architecture and will drive banks to align their interest with their customers by offering them a wider choice of products from a larger number of life companies, he said.
"We expect these new regulations to lead to much deeper penetration and enhanced distribution for the life insurance industry in general, thereby contributing to a greater sense of security for all Indians," Rau said.
With inputs from PTI
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