Mahindra Finance eyes expansion in Rural & Semi-Urban India for insurance products; receives corporate agency license from IRDAI
Mumbai, 28th May 2024: Mahindra & Mahindra Financial Services Limited (“Mahindra Finance”) , part of the Mahindra Group and one of India’s leading Non-Banking Finance Company, today announced that it has obtained a Certificate of Registration from IRDAI ( Corporate Agency License) to act as a ‘Corporate Agent (Composite)’ under the Insurance Act, 1938. This license would enable Mahindra Finance to offer tailored insurance plans to its customer base, enhancing the company’s customer centric approach.
The corporate agency license would help in broadening Mahindra Finance’s product portfolio by incorporating insurance solutions. It would help customers with their financial and insurance needs being met by a single entity. The process would augment the company’s existing sources of revenue and profits as it deploys its common infrastructure of branch network and feet on street.
Speaking on this development, Raul Rebello, Managing Director & CEO, Mahindra Finance mentioned, “The corporate agency license is a significant moment for us in our journey to empower customers with best products and services alike. This diversification will open new revenue models for us while delivering personalized services to customers across Mahindra Finance’s 1360+ branches, thereby enhancing their experience. By expanding our capabilities and offerings, we aim to promote innovation, benefitting our customers and stakeholders in our journey of being a preferred financier to emerging India”.
The Company’s foray into Corporate Agency business is accompanied by a robust compliance framework, including policies, procedures, and internal controls, to ensure adherence to regulatory requirements mandated by IRDAI.
The key to this business model would be the operational efficiency and collaboration with Insurtechs. Mahindra Finance will differentiate on technology innovation while working on automation of processes such as quote generation, policy management and claims support with Insurtechs to reduce manual effort and improve efficiency.
The corporate agency license will enable Mahindra Finance to solicit, procure and carry on the business of selling, distribution, advertising, marketing of all kinds of insurance products/ services including life insurance, health insurance, general insurance on behalf of various Insurance companies as a corporate agent as permitted by IRDAI.
Insurance penetration in rural and semi-urban parts of India is very low compared to metro and tier-1 cities. Equipping sales staff with required training and certification will empower them to pitch and sell individual life, health, and motor insurance policies. Obtaining a corporate agency license reflects Mahindra Finance’s commitment to contributing positively to the growth and development of the insurance industry in India.