Muthoot Microfin, a leading microfinance institution in India, has obtained a corporate agent license from the Insurance Regulatory and Development Authority of India (IRDAI), enabling it to provide customized insurance plans to its customer base.
This license bolsters Muthoot Microfin’s dedication to financial inclusion by offering insurance coverage that addresses the risks faced by the most vulnerable segments of society. By covering natural calamities and medical emergencies in addition to life insurance, Muthoot Microfin ensures a comprehensive approach to its customers’ financial security. This initiative aligns with Muthoot Microfin’s customer-first approach, allowing the company to offer both financial and insurance solutions to its 3.35 million customers under one roof.
The corporate agent license will enable Muthoot Microfin to negotiate better terms with insurance partners and tailor products to meet the needs of its BOP (Bottom of the Pyramid) customers in rural and semi-urban areas across India. With this new license, Muthoot Microfin can provide suitable insurance products to its customers while enhancing its revenue streams.
Commenting on this strategic move, Sadaf Sayeed, CEO of Muthoot Microfin, said, “At Muthoot Microfin, we are always seeking new avenues to better serve our microfinance customers. This development with IRDAI empowers us to bridge the protection gap for our microfinance customers. We can utilize our network of 1,508 branches spread across 19 states to reach out to 3.35 million customers. This extensive reach can be achieved without any additional expenditure. It also provides us with the opportunity to earn additional revenue in the form of commissions, which will directly contribute to our bottom line and improve our ROAs.”
This development will provide Muthoot Microfin’s customers with access to affordable insurance coverage, including health, life, and general insurance. It reinforces the NBFC-MFI’s commitment to financial inclusion by offering a broad range of financial products that protect customers’ well-being and help them achieve their long-term goals.
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