IRDAI allows Mahindra Finance to offer tailored insurance plans to its customers
May 22, 2024
New Delhi [India], May 22 : Mahindra Financial Services has received a corporate agency license from IRDAI (Insurance Regulatory and Development Authority of India) to offer specialized insurance plans, the company informed the exchange in a filing on Wednesday.
The license would enable Mahindra Finance to offer tailored insurance plans to its customer base, and would help in increasing the company's product portfolio by incorporating insurance solutions.
The company stated that this development will allow customers to meet their financial and insurance needs through a single entity. Additionally, it is expected to increase the company's revenue by leveraging its extensive branch network and field personnel.
"The corporate agency license is a significant moment for us in our journey to empower customers with the best products and services alike. This diversification will open new revenue models for us while delivering personalized services to customers across Mahindra Finance's 1360+ branches, thereby enhancing their experience" said Raul Rebello, MD and CEO, Mahindra Finance.
The entry of Mahindra Finance into the corporate agency business is accompanied by a strong compliance framework, including policies, procedures, and internal controls, to ensure adherence to regulatory requirements mandated by IRDAI.
The company plans to focus on operational efficiency and collaboration with Insurtech firms. Mahindra Finance will differentiate on technology innovation while working on automation of processes such as quote generation, policy management and claims support with Insurtechs to reduce manual effort and improve efficiency.
The corporate agency license allows Mahindra Finance to solicit, procure, and conduct the business of selling, distributing, advertising, and marketing a wide range of insurance products, including life, health, and general insurance, on behalf of various insurance companies, as permitted by IRDAI.
The company states that it aims to address the low insurance penetration in rural and semi-urban areas of India. By providing necessary training and certification to its sales staff, the company plans to empower them to effectively sell individual life, health, and motor insurance policies.
The shares of Mahindra Finance surged by 1.20 per cent to Rs 266 after the IRDAI approval on Wednesday.
