The Insurance Information Bureau of India is preparing a central database of intermediaries in the sector so that insurance companies have background information about them, to minimise mis-selling of policies and prevent fraud.
The list will cover the general and life insurance arenas and include different types of intermediaries and service providers such as individuals and corporate agents, third party agencies, investigators and surveyors, say local media reports.
Mr Kunnel Prem, CEO of the Bureau, said: "The list is in its formative stage. We are collecting the requisite data from insurance companies."
He said that the insurance industry has been asking for such a central database.
“We hope in future there could be a caution list,” he added.
Insurance companies often blacklist third parties when they discover malpractice among the latter. However, it is likely that each insurer might not make its list available to other insurance companies which means that recalcitrant intermediaries or service providers could offer their services to unknowing insurers .
The Insurance Information Bureau is promoted by the IRDAI with participation from the industry. It supports the insurance industry by providing sectoral data to enable decision making, including pricing.