Insurance sector regulator, IRDA, is considering whether to allow banks to tie-up with two-to-three insurance companies to sell their insurance products, a senior IRDA official said.
Presently, banks cannot have agency tie-ups with more than one insurer.
"Initially, we will be a little cautious...It (tie-ups of banks with insurance companies) can be two or three. We will then revisit the experience and come back," Insurance Regulatory and Development Authority (IRDA), Member (Actuary), R Kannan, told reporters here.
Various life and general insurance companies have been asking IRDA to relax this (banks tie-up with one insurer) requirement.
The regulator is currently reviewing the existing architecture of the Banacassurance model and has set-up a seven-member committee to study the subject.
The agency distribution arrangements through banks is generally known as the 'Bancassurance' model.
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The regulator is definitely going to introduce an open architecture, Kannan said, adding that, "the question is how many tie-ups the banks can have with insurance companies."
"It (banks' tie-up with two-to-three insurance companies) should be operationally feasible, administratively possible and at the same time take care of policyholders' interests," he said.