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In a bid to improve the availability of insurance products in India, the country’s regulatory body has proposed streamlining the registration process for insurance marketing firms (IMFs).
The Insurance Regulatory and Development Authority of India (IRDAI) has proposed changes to the federal framework that governs IMFs, reported moneycontrol.com. IMFs are new insurance distribution channels that employ individuals licensed to market, distribute, and service insurance products.
The proposed relaxation of the registration process follows a review of IMF regulations by an IRDAI committee earlier this year.
Among the changes IRDAI has proposed is reducing the capital requirement to INR 5 lakh for IMFs working in one of 117 aspirational districts identified in 28 states. The current capital requirement is INR 10 lakh.
Another proposed change is an expansion of the types of products which can be solicited or procured by IMFs to include group insurance products for micro small and medium enterprises (MSMEs) and crop insurance for farmers and agricultural workers.
IRDAI also proposes an expansion to the scope of work for IMF principal officers, as well as simplifying the resignation process of insurance sales personnel.
IRDAI is currently seeking comments and feedback on the proposed changes from all the stakeholders involved. The new registration process is expected to be launched soon after.
