Banks must be allowed to sell insurance policies of multiple companies

Allowing banks to distribute insurance products of multiple insurance companies would be a step in the right direction for both the industry and consumers.

As per the present norm a bank can distribute one life and one general insurance product. This is restricting their area of activity and choice of offers to customers. Banks are thus handicapped in terms of product offerings and catering to customer needs.

Bancassurance across the globe is a significant distribution channel and enabling this channel to market and sell insurance policies of multiple companies would prove beneficial for banks, insurer and the customers. This way the customers would have more choices to make from which would suit their financial needs. This in turn would promote retailing in insurance.

IRDA is now contemplating on allowing banks to sell insurance products of more than one company.