United India Insurance to seek regulatory nod to hire own biz correspondents to boost rural reach

New Delhi: State-run general insurer United India Insurance plans to hire its own business correspondents, or third parties instead of its employees, as micro-agents to deliver insurance products in rural areas, the Business Line reported citing the company's Chairman and Managing Director G Srinivasan.

The company will soon approach insurance regulator Insurance Regulatory and Development Authority (IRDA) to seek prior approval for the same, he said.

However, the company also has the option to tap business correspondents of banks with which the general insurer already has bancassurance arrangements, Srinivasan said.

Both the options will be used to increase the penetration of insurance policies in remote regions of the country.

Further, the insurer plans to launch more micro-insurance products this year aimed at the rural people, he said.

Earlier, in January, United India Insurance had said that it has bagged a four-year contract to offer health insurance in southern Indian state of Tamil Nadu, under the state government promoted insurance scheme.