Capital Small Finance Bank Limited (CSFB), and Edelweiss Life Insurance have entered into a bancassurance tie-up.
This strategic partnership will enable CSFB’s customer base to access Edelweiss Life Insurance’s life insurance products suite, thereby meeting their need for financial security.
The arrangement aims to enhance the CSFB’s life insurance offerings by providing its customers with access to Edelweiss Life’s digital platform and service touchpoints.
As of today, CSFB has 177 branches and with this tie-up, all products of Edelweiss Life will be available to bank’s customers at these branches.
‘Strategic partnership’
Sarvjit Singh Samra, MD & CEO, CSFB said, “We are thrilled to announce our strategic partnership with Edelweiss Life Insurance. As we expand our financial solutions, this tie-up with Edelweiss Life enhances our ability to offer comprehensive and tailored life insurance products to our customers, reinforcing our position as a trusted financial partner”.
By improving accessibility to quality insurance solutions, CSFB aims to become the primary banker for our middle-income group customers, creating a more secure and prosperous future for them, he said.
Sumit Rai, MD & CEO, Edelweiss Life Insurance said, “We are excited to embark on this journey with Capital Small Finance Bank and will together protect people’s dreams and aspirations”.
This partnership is grounded in a shared commitment to exceptional customer experience, superior business quality, and highest standards of legal and ethical conduct, Rai added.
“Institutions like Capital Small Finance Bank, which have a geographical stronghold and understand the pulse of their customers, give us a strategic advantage in bringing innovative products to the market to effectively meet customer needs. We are currently focussed on expanding our footprint across the country and this strategic partnership is a step in that direction,” Rai added.
Bancassurance is an insurance distribution model where insurance companies partner with banks to sell policies. Both the bank and the insurance company get to benefit from this arrangement.
While the bank earns a commission from the insurance company, the insurer gains from the distribution network of the bank.
Insurance regulator IRDAI had in 2022 widely thrown open the bancassurance channel for insurers as part of its overall effort to increase insurance penetration in the country and achieve the long-term goal of ‘insurance for all’ by 2047, when the country will celebrate its golden jubilee of independence.
The regulator had paved the way for corporate agents (banks) to have distribution tie up with maximum of nine life insurers, nine general insurers and nine health insurers. Also, insurance marketing firms (IMF) can now enter into tie up with as many as six life, general and health insurers.