IRDAI recommendation, banks may hold up to nine partnerships with insurers

Insurance Regulatory and Development Authorities of India, (IRDAI), informed the banks that they are entitled to develop up to nine partnerships with insurers, three in life insurance, three in non life, and three in the health class of business.

Despite pressure from some market players, this rule remains a non-binding recommendation. Banks have full discretion to choose the number of insurance companies with which they can enter into partnership.

In practice, they have agreements whereby no more than two insurers can be taken as partners: one in life insurance and another in non life insurance, health insurance being new in the field of bancassurance.