Regulatory compliance framework of intermediaries of Indian life insurance industry
In India, regulations prescribe rights and obligations that must be fulfilled by the parties involved for the success and survival of any industry. In highly regulated domains such as insurance industry, there is a need for more comprehensive standards that can be used to assure that, intermediary network conform to regulations. To address this need, the study expound upon a detailed framework of code of conduct that each intermediary channel need to follow, in order to dwell in the competitive scenario. Above all, it should be appreciated that the spirit of regulation is honoured, and not merely considered as formal fulfilment. While the level and style of supervision would vary depending upon the type of distribution channels and business that a player practises, it is essential that all activities have to come under the umbrella of proper regulations. In the insurance industry, regulatory emphasis is certainly on protecting the policyholders’ interests, apart from sectoral development and thus, there is great need for the players to ensure that at every stage, efficient service is rendered to the policyholder.