The proposed corporate agency norms that authorizes the banks to sell a specified percentage of insurance policies of other companies is likely to be liberalized by the regulator. Earlier, Insurance Regulatory and Development Authority of India (IRDAI) had said that banks must sell 50% of policies of other insurance companies over the next four years.
IRDAI had proposed a mandatory open architecture, where one bank will have to sell the products of three life, three general and three health insurance companies. As per the draft norms, banks were required to sell products of three companies, with one not exceeding 50% of the promoter company over the next four years.
“The regulator is planning to do away with the percentage limits that were prescribed in the draft,” said an executive of a life insurance company.
