Insurance Regulator Not As Alarmed By Concerns Around Bancassurance Mis-Selling

The insurance regulator is not particularly alarmed by the mis-selling in bancassurance, sources told NDTV Profit. As such, any restrictions on bancassurance might not be on the anvil.

Any regulatory measures in bancassurance are expected to be taken on a case-to-case basis, sources privy to the matter said. The insurance regulator and the finance minister have both, in the past, cautioned against mis-selling insurance products by banks. However, the regulator does appear to believe that increasing consumer awareness might help tackle the problem and any regulatory intervention might not be as necessary.

Bancassurance is the union of a bank and an insurance company. This partnership is aimed at providing health and life insurance products and services to the selected bank’s customers. Bancassurance is where the bank’s employees act as corporate agents, selling their insurance policy products and services.