IRDA Constitutes Committee On Distribution Channels

Hyderabad: The Insurance Regulatory and Development Authority has established a committee to examine the functioning of the various distribution channels for life insurance products. The authority feels that there is a need for a study to be undertaken to ascertain the manner in which these (distribution) channels have been functioning, their efficacy, cost effectiveness, weaknesses and make recommendations on the changes to be made to make them effective, professional and accountable. Mr N.M. Goverdhan, former Chairman, LIC of India, will act as the Chairman of the panel, which will have managing directors and CEOs of leading life insurance players as its members. The terms of reference of the committee would include, among others, to review the system of licensing of the corporate agents, their qualifications, consider the advisability of permitting several corporate agencies within the same group, examine in detail the commission structure and recommend necessary changes. The panel will also examine the need for a system of referral providers and scope for direct marketing, e-marketing, web-enabled sales points besides the scope of existing micro-insurance agency system and its remuneration, and suggest modifications and enlargement.