Balancing Act: Banks Urged to Refocus Amid Insurance Push

Irdai Chairman Debasis Panda emphasized the need for banks to prioritize their core duties while supporting bancassurance carefully to prevent mis-selling practices. He echoed Finance Minister Nirmala Sitharaman's concerns, stressing the importance of maintaining financial stability and ensuring insurance coverage integrity across India.

Insurance industry regulator Irdai's Chairman Debasis Panda has advised bankers to focus on their primary responsibilities and not to concentrate solely on selling insurance products.

Speaking at a banking and economy conclave organized by SBI, Panda highlighted the significance of the bancassurance channel in extending insurance reach but warned against neglecting core banking operations.

The call follows Finance Minister Nirmala Sitharaman's recent remarks on the issue. Panda also identified 'mis-selling' as a prevalent problem and emphasized the necessity for banks and insurance companies to work together to bolster industry trust. The regulator is keen on advancing a risk management framework aimed at securing financial stability and safeguarding policyholders' interests.

(With inputs from agencies.)