Mahindra & Mahindra Financial Services Ltd’s shares were up by 0.95 per cent after the company obtained a corporate agency licence from the Insurance Regulatory and Development Authority of India (IRDAI). The licence will enable Mahindra Finance to offer its customers insurance products to enhance its service portfolio and provide a solution for its financial and insurance needs.
The new licence allows Mahindra Finance to act as a ‘Corporate Agent (Composite)’ under the Insurance Act, 1938. This will broaden the company’s product offerings to include insurance plans, potentially increasing revenue by utilising its existing branch network and sales infrastructure.
Raul Rebello, Managing Director & CEO, Mahindra Finance, said, “The corporate agency licence is a significant step in our efforts to offer comprehensive products and services. This diversification will help us open new revenue models and deliver personalised services across our 1,360+ branches.”
Mahindra Finance plans to collaborate with Insurtech firms to enhance operational efficiency through technology innovation, to automate processes such as quote generation, policy management, and claims support. The move aims to address low insurance penetration in rural and semi-urban areas by equipping sales staff with the necessary training and certification to sell individual insurance policies.
The shares were up by 0.95 per cent at ₹265 at 2.18 pm on the BSE.