With a view to introduce new distribution channel IRDA floated a draft guidelines for setting up Insurance Marketing Firms.
Market regulator Insurance Regulatory and Development Authority on Wednesday met the representatives of Life and non – life insurance companies and with cross section of marketing personnel in life and general insurance industry to contemplate allowing distribution companies to have multiple tie ups with insurance companies.
Under this model, Insurance Marketing Firms can sell and service insurance products along with marketing of other financial products. This proposed model is akin to independent financial advisor based on the recommendations of the Govardhan committee on Distribution. For this purpose, IRDA constituted a core working group consisting of 2 CEO’s each from Life and Non – life insurance companies to study the concept and recommend the suitable model.
This core working group held the brainstorming sessions on the new distribution model to be implemented across cities of Mumbai, Chennai, Bangalore and Kolkata to take the views of the cross section of marketing personal in life and general industry.
Based on the above discussion, the core working group drafted and submitted its report to IRDA, based on which IRDA prepared a draft IRDA (Licensing of Insurance Marketing Firm) Regulations, 2014 for the purpose of seeking views of all the concerned.
IRDA gave all the concerned 15 days time limit to submit their views so that the regulations can be finalized.
