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, “ 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, according to the statement.
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.
