IDBI Federal Life to experiment PoS-based distribution
KOLKATA: IDBI Federal Life Insurance is planning to experiment PoS (point of sales) channel for selling insurance policies and is awaiting the sector regulator's clearance for it.
PoS distributors are allowed to sell simple, over-the-counter products where the risk of mis-selling is limited.
Insurance Regulatory & Development Authority of India (IRDAI) allowed this channel a couple of years back to increase the distribution footprint of the insurance sector.
IDBI Federal Life has, a fortnight back, filed two products to IRDAI sell through PoS channel, Chief Executive Officer Vignesh Shahane said. "We hope to get approval this month," he said.
The private insurer is planning to run pilot project in seven locations -- Delhi, Chandigarh, Lucknow, Bangalore, Hyderabad, Chennai and Coimbatore -- to test the response.
IRDA does not allow insurance companies to sell complex products like unit-linked insurance plans and deferred annuity plans through this channel.
Shahane said that the insurer has raised new business premium of Rs 820 crore in FY17, compared with Rs 588 crore in the previous fiscal.
The CEO said its asset under management has crossed Rs 6,000 crore compared with Rs 4,893 crore as on March 31, 2016.
About 78 per cent of its business comes through bankassurance, with the backing of its parent banks -- IDBI Bank and Federal Bank.
IDBI is the largest shareholder with 48 per cent stake while Federal Bank has 26 per cent holding with the overseas partner Ageas has 26 per cent at present.
It has been reported that IDBI Bank is likely to pare its stake while Ageas may raise it to 49 per cent in the company.
PoS distributors are allowed to sell simple, over-the-counter products where the risk of mis-selling is limited.
Insurance Regulatory & Development Authority of India (IRDAI) allowed this channel a couple of years back to increase the distribution footprint of the insurance sector.
IDBI Federal Life has, a fortnight back, filed two products to IRDAI sell through PoS channel, Chief Executive Officer Vignesh Shahane said. "We hope to get approval this month," he said.
The private insurer is planning to run pilot project in seven locations -- Delhi, Chandigarh, Lucknow, Bangalore, Hyderabad, Chennai and Coimbatore -- to test the response.
IRDA does not allow insurance companies to sell complex products like unit-linked insurance plans and deferred annuity plans through this channel.
Shahane said that the insurer has raised new business premium of Rs 820 crore in FY17, compared with Rs 588 crore in the previous fiscal.
The CEO said its asset under management has crossed Rs 6,000 crore compared with Rs 4,893 crore as on March 31, 2016.
About 78 per cent of its business comes through bankassurance, with the backing of its parent banks -- IDBI Bank and Federal Bank.
IDBI is the largest shareholder with 48 per cent stake while Federal Bank has 26 per cent holding with the overseas partner Ageas has 26 per cent at present.
It has been reported that IDBI Bank is likely to pare its stake while Ageas may raise it to 49 per cent in the company.
