Both companies clarified they have not received any directives or communications from the regulator on this matter.
In a statement, Max Life called the media broadcast “unsupported and with no ground.” The company confirmed it has not been part of any discussions with IRDAI related to limiting business from bancassurance partners or placing caps on banca sales tied to parent banks.
“…we hereby clarify and confirm that the Company has not received any such directive or communication by the Insurance Regulatory and Development Authority of India (IRDAI) on the capping for the business generation of the insurance companies through their bancassurance partners or any capping in Banca sale of the parent bank thereby making the said media broadcast unsupported and with no ground,” Max Life said.
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“Further, we have not been a part of any such discussion with IRDAI. As an insurance company, we believe that any such significant regulatory changes are introduced only post industry consultations,” Max Life added.
Echoing similar sentiments, SBI Life noted that IRDAI typically adopts a consultative approach, seeking feedback from all stakeholders before drafting regulatory guidelines.
“At the outset, we would like to mention that IRDAI adopts a consultative process and seeks feedback from all stakeholders which then is used to prepare the regulatory guidelines/articulate any concerns that the IRDAI may have with the industry,” SBI Life clarified in its statement.
“As part of our regular interactions with IRDAI, we have not been made aware of any such regulatory discussions around the level of insurance business being channelled through bancassurance arrangements,” SBI Life added.
Both insurers pointed out their commitment to making insurance widely accessible through diverse distribution models. SBI Life highlighted its extensive presence across the country, while Max Life reiterated the importance of bancassurance partnerships as part of its broader strategy to enhance insurance penetration.
These clarifications come amid speculation regarding changes to IRDAI policies that could impact how insurers collaborate with banks for distributing insurance products. However, the companies have assured stakeholders that no such developments have been formally communicated by the regulator.
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Shares of SBI Life Insurance Company Ltd ended at ₹1,427.95, down by ₹77.55, or 5.15% on the BSE.
