The draft regulations on open bancassurance architecture had drawn sharp reactions from both insurers as well as banks as they fall short of their expectations.
Currently, banks are allowed to tie up as corporate agents with one life, one non-life and one standalone health insurer.
While insurers without any tie-up with banks want the regulator to allow banks to have multiple partnerships, the lenders, including those from the public sector - which have floated their own insurance ventures - are opposed to the move as it would neutralise their exclusive tie-up and undermine investment in their insurance ventures.
Reliance Life Insurance's head Anup Rau told PTI that "the open bancassurance architecture will be in the interest of the consumers and help the industry grow in size."
Also Read
"The current architecture of one-bank-one-insurer helps bank push the product of their own insurer and earn a commission on it, which is a clear case of conflict of interest. We fully support an open architecture where banks sell product of multiple insurers," he said.
"We believe we are very well-positioned if the regulations were to be enforced in current form. We have been a leader on the bancassurance space and are confident proposed changes will help us associate with new partners," he said.
SBI Life's Arijit Basu said, "Irda has given revised draft on which we are broadly in agreement, we have requested for some minor changes/modifications."
New India Assurance Chairman G Srinivasan supported the view, saying his "company would like an open architecture on bancassurance and agrees with the latest proposals as "this will help all insurers to have tie-ups with banks and lead to the larger customer reach.