Tuesday, August 14, 2012

Micro Insurance product, distribution framework

To boost the micro insurance sector, the Insurance Regulatory and Development Authority (IRDA) has proposed to allow broadening of the product portfolio and distribution network, by allowing
more entities to sell the products. It has proposed to allow cooperative banks, regional rural banks, primary agricultural co- operative societies and individuals (shopkeepers,medical store owners, petrol pump owners, public telephone operators) to act as micro insurance agents. Noting the sector's business performance was far below the potential, the regulator has decided to revisit the regulations. The Micro Insurance Regulations prescribe a framework within which insurers can offer affordable
products in this regard. Insurance Regulatory and Development Authority (IRDA) notes a majority of the products offered are basic ones, and mostly term assurance. It has asked insurers to consider diversifying the portfolio of micro insurance products by including savings-linked and health cover features.


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