The insurance industry could see a new set of licences in the form of managed general agencies, or MGAs, as the insurance regulator is looking at the viability of such entities for the Indian market.
Multiple founders of large insurance intermediaries have held conversations with IRDAI on this matter and the regulator has been receptive to the idea of MGAs too, industry insiders said.
A managed general agency is similar to a non-banking finance company in the banking space – it can onboard customers, manage products, underwrite customers, and also share the risk with larger insurance manufacturers. These types of entitles are popular in the US and Singapore, but do not exist in India as of now. “We have shared our thoughts with the regulator on the idea of MGAs. They have heard us out… and told us that they will examine its scope for India,” founder of a major insurtech startup told on the condition of anonymity. “On these matters the regulator has been extremely receptive to suggestions.”