India’s Insurance Regulatory Development Authority (IRDA) is proposing to make greater use of the country’s 80,000 banks as part of sweeping changes to increase insurance penetration across the country.

Life and general insurance companies have called for the relaxation of restrictions that only allow banks to have joint ventures with one insurer.

The IRDA has now released a report outlining a proposal that would allow banks to have relationships with any two insurers.

It says a bancassurance distribution model would be the most effective way for insurance to be distributed in India.

It also calls for a regulatory framework that would include making sure banking staff are fully trained in handling insurance products, and specifies that insurance products should only be sold in bank branches where trained personnel are posted.