The DFS review also called for stronger performance monitoring, wider digital adoption and improved customer grievance handling across the state-owned insurers.
The initial three-month agreement is expected to pave the way for a five-year partnership focused on improving insurance affordability and resilience, RACT said.
A shift to a broad-based property charge would lower costs for most households and businesses while expanding insurance uptake, the industry body said.
Home minister Amit Shah said the venture would build on IFFCO's existing joint venture with Tokio Marine to widen the cooperative sector's role in insurance.
