ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by Deepti GeorgeSubscribe to Deepti George

A Review of Life Insurance Distribution in India

Large gaps exist in life insurance coverage in India. The paper examines this issue through a supply-side lens by examining the two key features—the distinction between the agent and the broker model and the alignment of incentive structures with product life-cycle servicing. Regulations rely on disclosures to clarify the agent–broker distinction to customers, but conflicts of interest may prevent intermediaries from making these disclosures. Without such transparency, commission-driven sales can result in mis-selling, irrespective of the intermediary being a broker or an agent. The Insurance Regulatory and Development Authority of India has sought to address the issue of mis-selling through the product disclosure and suitability guidelines. However, these measures are inadequate and might not be effective.

Pradhan Mantri Mudra Yojana

The Pradhan Mantri Mudra Yojana is the government’s flagship refinance and guarantee scheme aimed at providing access to credit for non-corporate and informal enterprises. Analysing the available data, the performance of the PMMY against its objectives is assessed, and it is observed that the PMMY has not altered secular trends in lending to the target segments. The current scheme design for its ability to create the level of impact needed is questioned, and some ideas on how to accelerate impact are also discussed.

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