M&M Financial Services Receives IRDAI Corporate Agency License

Mahindra Finance will now be eligible to offer life, health, and general insurance products after receiving corporate agency license from IRDAI. The company will focus on rural and semi-urban markets where insurance penetration is low.

Mahindra & Mahindra Financial Services announced on Wednesday that the company has received a certificate of registration from the Insurance Regulatory and Development Authority of India (IRDAI), granting it a Corporate Agency License under the Insurance Act, 1938. This new license will enable it to offer customized insurance plans to its clients, furthering its customer-centric approach.

According to the Mahindra Finance regulatory filing, the license will be valid from May 21, 2024, to May 20, 2027. This development will allow the company to expand its product portfolio to include insurance solutions, meeting both financial and insurance needs for its customers through a single entity. By leveraging its existing infrastructure of the branch network and sales team, Mahindra Financial expects this move to boost its revenue and profitability.

Raul Rebello, Managing Director & CEO of Mahindra Finance, commented on the milestone, stating that the diversification will open new revenue models for the company while delivering personalized services to customers across Mahindra Finance’s 1360+ branches, thereby enhancing customer experience. “By expanding our capabilities and offerings, we aim to promote innovation, benefitting our customers and stakeholders in our journey of being a preferred financier to emerging India,” he added.

The company's entry into the Corporate Agency business is supported by a comprehensive compliance framework, which includes policies, procedures, and internal controls to ensure adherence to IRDAI's regulatory requirements.

The corporate agency license will authorise Mahindra Finance to seek, procure, and manage the business of selling, distributing, advertising, and marketing multiple insurance products and services. This includes life insurance, health insurance, and general insurance, acting as a corporate agent as permitted by IRDAI on behalf of multiple insurance companies.

In India, insurance coverage is still very low in rural and urban segment compared to tier-1 cities and towns. Mahindra Finance aims to fill this gap by providing its sales staff with the necessary training and certification to empower them to effectively create and sell personal life, health and auto insurance policies.