SBI Life Insurance has issued a clarification regarding recent media reports suggesting that the Insurance Regulatory and Development Authority of India (IRDAI) may impose a cap limiting a parent bank’s share in an insurer’s total bancassurance business to 50%. The company has stated that it has not been made aware of any such regulatory discussions during its regular interactions with IRDAI.
SBI Life’s official statement:
In a press note titled “Clarification on news in media,” the insurer stated:
- IRDAI adopts a consultative process involving feedback from all stakeholders before formulating or revising regulatory guidelines.
- As part of its consultations with IRDAI, SBI Life has not been informed of any regulatory discussions or plans to alter bancassurance arrangements.
- The company remains committed to making insurance accessible across the country through its diversified distribution channels.
Background:
Reports earlier suggested that IRDAI might consider capping the contribution of a parent bank to 50% of an insurer’s bancassurance business. CNBC-TV18, citing unnamed sources, reported this potential regulatory move on November 28, sparking speculation in the industry.
Assurance to stakeholders:
SBI Life emphasized its extensive distribution network and commitment to increasing insurance penetration. It reiterated that any significant regulatory change would likely be preceded by broad stakeholder consultations, as per IRDAI’s established approach.
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