Muthoot Microfin Limited, one of the leading microfinance institution in the cointry, through an exchange filing on Tuesday, June 25, announced that the company has received a corporate agent license from the Insurance Regulatory and Development authority of India (IRDAI).
The shares of the company at 1:21 pm IST on BSE were trading at Rs 250.70, up by 3.30 per cent.
This new licence will allow the company to provide a variety of insurance plans and coverage for new insurance services like life, health, and general insurance, addressing risks such as natural disasters and medical emergencies.
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.”
Revenue and Earnings
This recent development, not only benefits customers but also augments the company's revenue streams.
With this corporate agent licence, the company can now negotiate with insurance partners to customise products suited to their Bottom of the Pyramid (BOP) customers.
In addition, with this development, it also offers the company an opportunity to earn commissions from insurance products which will directly contribute to Muthoot Microfin's bottom line and improve its Return on Assets (ROAs).
