M&M Finance Gets License from IRDAI to Enter Insurance Business

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Synopsis:

Mahindra Finance secures IRDAI corporate agency licence, valid from May 21, 2024, to May 20, 2027, empowering them to offer insurance solutions and enhancing services for over 10 million customers with assets over USD 11 billion.

Mahindra Finance News Today

Mahindra & Mahindra Financial Services has announced obtaining a certificate of registration from the Insurance Regulatory and Development Authority of India (IRDAI) for a Corporate Agency License. This licence permits Mahindra Finance to act as a corporate agent under the Insurance Act, 1938, across its extensive network of 1360+ branches.

Additional Read: M&M Finance Postpones Board Meeting After Fraud Discovery

Expanding Product Portfolio

The corporate agency licence allows Mahindra Finance to broaden its product portfolio by integrating insurance solutions, aiming to meet both the financial and insurance needs of its over 10 million customers with assets of over USD 11 billion under a single entity.

Revenue Augmentation and Customer Experience

Raul Rebello, Managing Director & CEO of Mahindra Finance, highlights the significance of this diversification in opening new revenue models while enhancing personalised services for customers across the company's extensive branch network.

Additional Read: M&M Financial Services April Disbursements Up 4%, NII Up 21%

Compliance Framework and Business Scope

Mahindra Finance emphasises a robust compliance framework to ensure adherence to regulatory requirements set by IRDAI. The licence enables the company to solicit, procure, and conduct business related to various insurance products and services, including life, health, and general insurance.

Focus on Rural and Semi-Urban Sector

Mahindra Finance's strategic move aligns with its focus on the rural and semi-urban sectors, aiming to bridge the gap in insurance penetration compared to metro and tier-1 cities. The company plans to equip its sales staff with the necessary training and certifications to effectively promote and sell insurance policies.

Commitment to Industry Development

Obtaining the corporate agency licence reflects Mahindra Finance's commitment to positively contribute to the growth and development of the insurance industry in India. This step underscores the company's dedication to innovation and customer-centric financial services.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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