India allows banks to offer broker services

India’s central bank has said that banks are now allowed to offer insurance broking services as part of a move to increase insurance penetration in India.

To offer insurance broking services, banks can set up a subsidiary/joint venture, as well as undertake insurance broking/ insurance agency/either departmentally or through a subsidiary subject to conditions.

However, only one entity in the group can undertake insurance distribution through either broking or corporate agency mode.