The Standing Committee on Finance has recommended open architecture for insurance agents to enhance sectoral reach and product distribution, as outlined in their report on the regulation of the insurance sector.
Key highlights of the recommendations:
- Open architecture allows agents to offer services from multiple insurance companies, aiming to broaden the reach of insurance products and strengthen distribution across the country.
- Currently, the Insurance Act 1938 restricts agents to working with one life, one non-life, and one health insurance company, but the proposed changes would allow for greater insurance penetration, promote financial inclusion, and reduce distribution costs.
- Recommendations include permitting composite licensing for companies to sell both life and non-life products, urging a rationalization of the 18% GST rate on insurance, particularly health and term insurance.
- The creation of a central portal named UDGAM for complaints and redressal is also recommended, which serves as a platform for depositors to access information on their unclaimed deposits.
Ref: Source
| UPSC IAS Preparation Resources | |
| Current Affairs Analysis | Topperspedia |
| GS Shots | Simply Explained |
| Daily Flash Cards | Daily Quiz |