HDFC Life plans to expand distribution channel to address bancassurance mis-selling concerns

HDFC Life, in its analyst conference call, responded to discussions surrounding bancassurance and concerns of mis-selling in the financial industry. While the management said no official information has been received from insurance regulator, but added that it is taking active steps to address mis-selling by expanding both its proprietary channels.

Mis-selling occurs when financial products such as insurance policies, mutual funds, or loans are sold without proper disclosure of terms or suitability. This could involve selling products that don’t align with a customer’s financial goals, misrepresenting the risks or benefits, or pressuring customers into purchases they don’t need.

HDFC Life pointed out that complaints related to mis-selling in its bancassurance channel are relatively lower compared to other distribution channels. However, the management said that there is always room for improvement in this area.

To overcome this, the management outlined strategy to expand both its proprietary channels, which include agency and direct sales, and its partnerships with banks.