Muthoot Microfin Secures IRDAI License for Customised Insurance Solutions

On June 25, 2024, Muthoot Microfin informed the stock exchanges that the company had secured a corporate agent licence from the Insurance Regulatory and Development Authority of India (IRDAI). This licence would allow the company to provide customised insurance plans to their customer base.

The licensing agreement strengthens Muthoot Microfin’s dedication to financial inclusion by providing insurance coverage tailored to mitigate risks for vulnerable segments of society. This includes protection against natural disasters, medical emergencies, and life insurance, ensuring comprehensive financial security for its customers. This initiative aligns with Muthoot Microfin’s customer-centric approach, enabling the provision of integrated financial and insurance solutions to its 3.35 million customers.

The corporate agent licence enhances Muthoot Microfin’s ability to collaborate effectively with insurance partners, enabling the customisation of products that meet the specific needs of its base of the pyramid (BOP) clientele in rural and semi-urban India. This licence expansion not only broadens Muthoot Microfin’s revenue streams but also enhances its earnings potential by offering tailored insurance products to its customer base.

The company stated that this development will offer Muthoot Microfin’s customers access to affordable insurance coverage, containing life, health, and general insurance. It highlights the Non-Banking Financial Company – Micro Finance Institution’s (NBFC-MFI) commitment to financial inclusion by delivering a wide range of financial products that protect their customers’ well-being and enable them to achieve their long-term objectives.

Speaking of this significant development, the CEO of Muthoot Microfin, Mr Sadaf Sayeed, 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 utilise 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.”

On June 25, 2024, the share price of Muthoot Microfin Ltd opened at ₹245.80, touching the day’s high at ₹257.98, as of 1:12 PM on the NSE.

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