IDBI Federal Life to sell insurance via PoS channel
KOLKATA: IDBI Federal Life Insurance Co is planning to explore PoS (point of sales) channel to sell insurance policies and has filed for two such products to the Insurance Regulatory & Development Authority (Irda), its chief executive officer said.
Irda allowed this channel a couple of years back to increase the distribution footprint of the insurance sector. PoS distributors are allowed to sell simple, over-the counter products where the risk of mis-selling is limited.
“We hope to get approval this month," said IDBI Federal Life CEO Vignesh Shahane.
The private insurer is planning to run pilots in seven locations Delhi, Chandigarh, Lucknow, Bengaluru, Hyderabad, Chennai and Coimbatore to test 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 the insurer has raised new business premium of . 820 crore in FY17 against Rs 588 crore the previous fiscal. He said its asset under management crossed Rs 4,893 Rs 6,000 crore versus crore as on March 31, 2016.
“We have grown 25-30% per annum for the last three years in a challenging environment. We hope to continue this in this financial year as well," Shahane said. About 78% of its business comes through bancassurance, with the backing of its parent banks IDBI Bank and Federal Bank.
Irda allowed this channel a couple of years back to increase the distribution footprint of the insurance sector. PoS distributors are allowed to sell simple, over-the counter products where the risk of mis-selling is limited.
“We hope to get approval this month," said IDBI Federal Life CEO Vignesh Shahane.
The private insurer is planning to run pilots in seven locations Delhi, Chandigarh, Lucknow, Bengaluru, Hyderabad, Chennai and Coimbatore to test 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 the insurer has raised new business premium of . 820 crore in FY17 against Rs 588 crore the previous fiscal. He said its asset under management crossed Rs 4,893 Rs 6,000 crore versus crore as on March 31, 2016.
“We have grown 25-30% per annum for the last three years in a challenging environment. We hope to continue this in this financial year as well," Shahane said. About 78% of its business comes through bancassurance, with the backing of its parent banks IDBI Bank and Federal Bank.
