Mahindra & Mahindra Financial Services Limited (“Mahindra Finance”), part of the Mahindra Group and one of India’s leading Non-Banking Finance Companies, has announced the acquisition of a Certificate of Registration from the Insurance Regulatory and Development Authority of India (IRDAI). This Corporate Agency License allows Mahindra Finance to act as a ‘Corporate Agent (Composite)’ under the Insurance Act, 1938.
This new license enables Mahindra Finance to offer customized insurance plans, enhancing its customer-centric approach. By incorporating insurance solutions into its product portfolio, the company aims to meet the financial and insurance needs of its customers through a single entity. This move is expected to boost the company’s revenue and profits by leveraging its existing branch network and workforce.
Raul Rebello, Managing Director & CEO of Mahindra Finance, commented on the development, stating, “The corporate agency license is a significant moment for us in our journey to empower customers with best products and services alike. This diversification will open new revenue models for us while delivering personalized services to customers across Mahindra Finance’s 1360+ branches, thereby enhancing their 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.”
Mahindra Finance’s entry into the Corporate Agency business is backed by a strong compliance framework, ensuring adherence to IRDAI regulations. The company plans to enhance operational efficiency through collaboration with Insurtech firms, focusing on technology innovations such as automation of quote generation, policy management, and claims support.
The corporate agency license will allow Mahindra Finance to solicit, procure, and manage the sale, distribution, advertising, and marketing of various insurance products, including life, health, and general insurance. This initiative targets improving insurance penetration in rural and semi-urban areas of India, where it remains significantly lower than in metro and tier-1 cities. Training and certifying sales staff will be key to empowering them to sell individual insurance policies effectively.
By obtaining the corporate agency license, Mahindra Finance demonstrates its commitment to contributing positively to the growth and development of the insurance industry in India.