Max Life, SBI Life refute speculative reports on bancassurance caps
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Max Life Insurance Company Ltd and SBI Life Insurance Company Ltd have denied recent media reports suggesting that the Insurance Regulatory and Development Authority of India (IRDAI) plans to impose caps on the business generated through bancassurance partnerships.
Companies Deny Regulatory Discussions
In a statement, Max Life dismissed the media reports as "unsupported and with no ground." The company confirmed that it has not engaged in any discussions with IRDAI about limiting business from bancassurance partners or imposing caps on banca sales tied to parent banks.
"Max Life has not received any directives or communication from IRDAI regarding capping business generation through bancassurance partners or any capping in banca sales of the parent bank," the company clarified.
SBI Life Echoes Similar Sentiments
SBI Life Insurance also refuted the reports, noting that IRDAI typically follows a consultative approach, seeking feedback from all stakeholders before drafting regulatory guidelines.
"IRDAI adopts a consultative process and seeks feedback from all stakeholders, which is then used to prepare regulatory guidelines or address any concerns," SBI Life stated.
Commitment to Diverse Distribution Models
Both insurers emphasized their commitment to making insurance widely accessible through various distribution models. SBI Life highlighted its extensive presence across the country, while Max Life reiterated the importance of bancassurance partnerships in enhancing insurance penetration.
Market Impact and Reassurances
These clarifications come amid speculation regarding potential changes to IRDAI policies that could affect how insurers collaborate with banks for distributing insurance products. Despite the rumors, both companies assured stakeholders that no formal communications about such developments have been received from the regulator.
Share Market Reaction
Shares of SBI Life Insurance Company Ltd closed at ₹1,427.95, down by ₹77.55, or 5.15% on the BSE.
Both Max Life and SBI Life have reassured their stakeholders and the public that their bancassurance operations continue as usual, with no new regulatory caps imposed by IRDAI.
