Venkatachari JagannathanChennai, Dec. 19 -- With its earlier idea of allowing regional insurers with lower start up capital evoking strong opposition, the Indian government seems to have decided to bring in a new insurance intermediary called Managing General Agency (MGA).
Interestingly, the MGA in other markets functions like a `mini or regional insurer' with powers to underwrite policies, settle claims upto a certain limit and also ink reinsurance deals.
But the ultimate liability lies with that of the primary insurer whom the MGA represents. The MGA seems to be an alternative for the originally planned regional insurance companies, said a couple of industry experts not wanting to be quoted.
It should be said the earlier proposal of th...