Individual health insurance companies have requested Irda that is, the Insurance Regulatory and Development Authority to lighten the bancassurance guidelines. These guidelines forbid a health insurer from selling its policies through a bank which have tie-ups with either life or general insurance companies. Irda is working on the new guideline. There are fewer standalone health insurance in comparison to life and general insurance companies. It would be interesting how they would manage tie-ups with every bank.
Health insurers are convinced that freedom from these constraints is imperative for their growth as today each bank has tie-up with life or general insurer. Few banks are into the insurance sector themselves (like ICICI etc.). To increase their coverage area they need banks to act as their corporate agents. This can only happen from relaxing of the bancassurance guidelines set by Irda.
Today standalone health insurers have to bank on agents and brokers to sell their policies to individuals, corporate and groups. And since banks have tie-ups with the life and non-life companies, standalone health insurance companies deserve the same opportunity.
The good news is Irda is looking into the draft guidelines on bancassurance and they may allow banks to tie-up with 2-3 insurance players.
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Tags: Health Insurance