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IRDAI Expands Insurance Reach: Telecom Outlets, CSCs to Boost Distribution
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CNBC TV18•30-09-2026, 20:35
IRDAI Expands Insurance Reach: Telecom Outlets, CSCs to Boost Distribution
- •IRDAI Chairman Ajay Seth aims to deepen insurance penetration by involving telecom companies, Common Service Centres (CSCs), banking correspondents, and local entrepreneurs.
- •The regulator plans to widen the scope for Point of Sales Persons (POSPs), enabling them to sell a broader range of insurance products after online training and testing.
- •Telecom outlets and their agents, along with over five lakh CSCs predominantly in rural areas, are identified as key potential distribution channels.
- •The initiative seeks to leverage existing local networks, creating opportunities for community members to sell insurance and expand access in underserved regions.
- •Proposed changes are part of IRDAI’s consultation on insurance distribution economics, aiming for greater efficiency and improved value for policyholders.
Key Questions Answered
IRDAI plans to leverage existing local networks like telecom outlets, banking correspondents, and over five lakh Common Service Centres—mostly in rural areas—to enable local enterprises to sell insurance within their communities instead of relying on representatives from larger cities.
Under the proposed changes, Point of Sales Persons (POSPs) who complete online training courses and pass a test will be allowed to sell a broader range of insurance products, including unit-linked insurance plans (ULIPs).
The proposed changes aim to expand insurance access in underserved areas, improve efficiency for insurers and distributors, and enhance value for policyholders without relying solely on traditional intermediaries.
