Is insurance selling by BCs the next step in financial inclusion?

The business correspondents' representative body has asked IRDAI to allow them to sell insurance products, particularly weather-indexed schemes to provide a safety net for rural buyers

The Business Correspondent Resource Council (BCRC) has asked the Insurance Regulatory and Development Authority of India (Irdai) that business correspondents (BC) for banks also be allowed to sell insurance products. Currently, the BCs' channel -- introduced in 2007 -- only offers last-mile banking services to urban and rural poor segments. 

The BCRC’s argument is that shocks from climate-related issues are affecting those at the bottom of the pyramid in a significant way. This presents an opportunity to sell weather-indexed insurance: policies designed to trigger payouts (livelihood support) based on specific weather conditions, such as low rainfall, extreme heat conditions, and