Irdai sets up panel establish insurance service centres

Insurance regulator Irdai today set up a 7-member committee for establishment of insurance service centres with an aim to provide prompt servicing of policyholder in the most cost efficient manner.
The proposed company neutral centres will help insurers in reducing the costs which are involved in setting up brick and motor offices to service policyholders.
"These service centres can accept requests from the policyholder of any insurance company and pass on the same to the respective insurance company in a cost efficient manner.
"These service centres will not only increase the touch points that will become available to the customers but will bring insurance at the doorstep of the customer. The insurance companies would also gain by saving on investments to be made in the traditional brick and mortar offices," Irdai said.

The expert committee would be headed by Rajesh Relan ex-MD, PNB Metlife Life Insurance Company Limited. It would include Munish Sharda (CEO, Future Generalli Life Insurance), Neelesh Garg (CEO, TATA-AIG General Insurance) and Anuj Gulati.
Irdai said the committee would study the legal structure of the centres, capital requirements, and operational model, among other issues.
The regulator said insurance companies have been able to achieve some success in increasing insurance penetration in the country by largely employing insurance agents or insurance intermediaries.
"However, the desired goal of prompt servicing of policyholder in the most cost efficient manner is yet to be achieved," the Irdia's office order said.