This license strengthens Muthoot Microfin’s commitment to financial inclusion by providing insurance coverage that addresses the risks faced by the most vulnerable segments of society
FinTech BizNews Service
Mumbai, June 25, 2024: Muthoot Microfin (NSE: MUTHOOTMF BSE: 544055), a leading microfinance institution in India, has secured a corporate agent license from the Insurance Regulatory and Development Authority of India (IRDAI) that would enable it to offer tailored insurance plans to its customer base.
This license strengthens Muthoot Microfin’s commitment to financial inclusion by providing insurance coverage that addresses the risks faced by the most vulnerable segments of society. By offering cover for natural calamities and medical emergencies in addition to life insurance, Muthoot Microfin ensures a holistic approach to its customers' financial security. This initiative stems from Muthoot Microfin’s customer-first approach, which allows the company to offer both financial and insurance solutions under one roof to its 3.35 million customers.
The corporate agent license will help Muthoot Microfin negotiate better with insurance partners and customize products to suit 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 offer the right insurance products to its customers while augmenting its sources of revenue and earnings.
Commenting on this strategic move, Mr. Sadaf Sayeed, CEO, 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, encompassing health, life, and general insurance. It reinforces the NBFC-MFI’s dedication to financial inclusion by delivering a broad range of financial products that protect our customers' well-being and enable them to reach their long-term objectives.
