NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Better remuneration to distributors and policies with bigger ticket size may boost sale

Micro-insurance products may see a significant change in their structure and product feature once the insurance regulator brings out the final guidelines for these policies. Insurance companies have sought better incentives to distributors like banking correspondents apart from having ticket-size of products of up to Rs 1 lakh in order to generate better interest to sell the products.

Earlier this year, Insurance Regulatory and Development Authority (Irda) had brought out a revised draft on the micro-insurance products. The regulator had said that partial withdrawals may be permitted subject from the second policy year onwards, subject to ensuring maintenance of minimum balance equivalent to one annual premium in the policy account.