Irdai may limit insurance companies' overdependence on parent banks

The Insurance Regulatory and Development Authority of India (Irdai) is likely to bring in regulations to limit the overdependence of life insurance companies on their parent banks for business sources through bank channels, sources said.

 

Irdai also plans to encourage diversification across multiple distribution channels to ensure balanced growth across the industry. Although the companies can continue to focus on certain channels where they have strength, diversification would be an ideal, sources added.

 

If insurance companies have the strength of a parent bank, they should use it. However, the companies should not continue using it for a long time. The