Will be a ‘net beneficiary’ if IRDAI push to reduce bancassurance dependence is implemented, says Sanjiv Bajaj | Exclusive

Bajaj Finserv Chairman and Managing Director Sanjiv Bajaj on Tuesday, March 18 said that the company will be a “net beneficiary” if the Insurance Regulatory and Development Authority of India (IRDAI) pushes insurers to reduce their reliance on bancassurance.Speaking to CNBC-TV18, Bajaj highlighted that Bajaj Finserv’s insurance business is well-diversified and not dependent on a single distribution channel like bancassurance.

“If IRDAI moves forward with its nudge to insurers to diversify their distribution, it will be beneficial for us,” Bajaj said.

Bancassurance refers to the partnership between banks and insurance companies, where banks sell insurance products through their network.Many insurers in India rely heavily on this model, but IRDAI has been exploring ways to open up the insurance distribution landscape to create a more level playing field.

Bajaj was speaking exclusively to CNBC-TV18 a day after Bajaj Finserv announced its acquisition of Allianz’s 26% stake in Bajaj Allianz Life and Bajaj Allianz General Insurance, making it the sole owner of both companies.

Sanjiv Bajaj also said that Allianz will be released from its non-compete clause once the first tranche of the stake acquisition is completed.

The company is also reportedly planning to list its insurance businesses in the near future, as per CNBC-TV18 sources.