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Mahindra & Mahindra Financial Services Ltd (MMFSL) plans to diversify into a supplemental business activity of soliciting and procuring insurance business as a corporate agent.
Towards this end, the company will approach insurance regulator IRDAI for composite licence as corporate agent in the areas of life, general and health insurance, both group and individual, MMFSL said in a filing with stock exchanges.
The corporate agency will help the company diversify its sources of income, it added. The company expects net fee income from these new segments to be around 0.1 per cent to 0.2 per cent of its standalone average assets over the next 1-3 years.
MMFSL will initially invest ₹5 crore to ₹10 crore towards technology, hiring training and certification.
Interestingly, another entity of the Mahindra Group, Mahindra Insurance Brokers Ltd, is involved in insurance broking in life, non-life and reinsurance businesses. It reported an income of ₹289 crore in the second quarter this fiscal.
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