Restrictions on bancassurance might not be a great step, says HDFC Life's Vibha Padalkar

Vibha Padalkar, MD & CEO- HDFC Life

Restrictions on the bancassurance might not be a great step when the touchpoints are higher and complaints are lower, said managing director and chief executive officer, Vibha Padalkar on January 23.

"However, having restrictions on bank assurance when data does not show it as such, as well as the touch points today are 10 times as much. When in crying need for insurance penetration into India, I think it might not be a great step," Padalkar said on the sidelines of the Insurance & Reinsurance Conference 2025.

Maharashtra Economic Development Council organised the Insurance and Reinsurance Conference 2025 today.

Talks about the restrictions on bancassurance has surfaced after Finance Minister and IRDAI Chairman spoke about the banks selling insurance more than their core banking products.

Last year in November, Finance Minister Nirmala Sitharaman said that banks should prioritise more on core banking products over unnecessary insurance bundling.

"Don't burden customers with insurance which they don't require," she said.

IRDAI Chairman also addressed the same concern last year and said, current challenges in the bancassurance segment needs to be addressed.

Last month, Moneycontrol reported that Insurance regulator Insurance Regulatory and Development Authority of India (IRDAI) may bring regulations to curb over dependence on bancassurance at parent bank.

Insurance companies will need tie-ups with more banks in order to reduce dependency on the parent bank, the sources said about the likely norms that could come into effect.

IRDAI will bring new regulations on bancassurance and it will follow stakeholder consultations and exposure drafts, the sources added.