Banks can tie up with utmost one insurance company as the agency. For example IOB has the LIC as the Insurance partner. Insurance sector regulator IRDA is considering whether to allow banks to tie-up with two-to-three insurance firms to sell their insurance.
The regulator is currently reviewing the existing Banacassurance model and has set-up a seven-member committee to study the subject.
The agency distribution arrangements through banks is generally known as the ‘Bancassurance’ model.