Indian domestic insurance market is set to witness IRDAI’s path breaking regulatory reform with the regulator considering the feasibility of allowing managed general agencies or MGAs into the insurance market.
At present, MGAs do not operate in India, but IRDAI is considering their participation favorably in continuation of discussions being held with large insurance intermediaries. This positive step would allow current insurance intermediaries like Policybazaar, and others, who are focused only on distribution, to play a bigger role in the design of insurance products and life cycle management of the customer.
The entry of MGAs will open up opportunities for new-generation tech companies in partnership with large insurance companies for risk-sharing, underwriting business, wider use of technology, and offering customized insurance products in areas where the insurers does not have presence.