IRDA sets up panel to examine issue of retail broking system

Insurance regulator IRDA today set up a committee to examine the issue of allowing retail broking system in the insurance space with an aim to increase penetration.

Besides, the 10-member committee will also consider the qualification, examination and syllabus for players in the retail broking system.

The panel will also consider manner in which the retail broking system could operate as sub-brokers and together with insurance brokers the manner in which these could be dovetailed with the Common Service Centres proposed to be set up by the government of India, IRDA said.

Various stakeholders have been requesting the authority to consider sub-broking system as prevalent in other jurisdictions, it said.

It noted that in order to increase the penetration of insurance in semi urban and rural areas presence of intermediaries is vital.

At present the insurers and brokers are mainly operating mostly in big cities, it said.

The committee, headed by P C James chair professor of National Insurance Academy, will submit its report by January 31, 2013.