IRDAI approves Mahindra & Mahindra Finance to sell insurance products as corporate agent

Mahindra & Mahindra Financial Services announced on Wednesday that it has obtained a corporate agency license from the Insurance Regulatory and Development Authority of India (IRDAI). This license will permit the company to sell life, health, and general insurance policies from various insurers, significantly expanding its service offerings.

Corporate Agent License

According to a regulatory filing, the registration as a 'Corporate Agent (Composite)' will be valid from May 21, 2024, to May 20, 2027. This new authorization will allow Mahindra Finance to engage in the supplemental business of soliciting and procuring insurance policies across life, health, and general insurance sectors, both for groups and individuals. This strategic move is expected to enhance the company's existing revenue streams and profitability by leveraging its extensive branch network and field force.

Raul Rebello, Managing Director & CEO of Mahindra Finance, emphasized the potential benefits of this diversification. "This expansion into insurance will unlock new revenue models for us, while also providing personalized services to our customers through Mahindra Finance's 1,360+ branches. This will significantly enhance their overall experience," Rebello stated.

The corporate agency license empowers Mahindra Finance to engage in the selling, distribution, advertising, and marketing of a wide range of insurance products and services on behalf of various insurance companies. This aligns with the company’s commitment to broadening its service portfolio and tapping into the lucrative insurance market.

Primarily focused on the rural and semi-urban sectors, Mahindra Finance serves over 10 million customers and manages assets worth over $11 billion. The non-banking finance company (NBFC) is a prominent financier of vehicles and tractors, provides loans to small and medium-sized enterprises (SMEs), and offers fixed deposit products.

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