Bajaj Allianz General Insurance Company Ltd (BAGIC), a leading private general insurer, has entered into a strategic bancassurance partnership with HSBC India, a leading international bank in the country.
Under this tie-up, BAGIC’s comprehensive suite of insurance products and services will be offered to HSBC’s vast customer base in India, based on a shared vision of financial inclusion and customer empowerment across the country.
Commenting on the partnership, Tapan Singhel, MD & CEO of BAGIC, said, “We are pleased to announce our partnership with HSBC, a global financial institution with a strong presence in India. Through this collaboration, we aim to provide comprehensive insurance solutions to HSBC’s valued customers.”
HSBC’s well-established network, coupled with BAGIC’s insurance expertise, creates a powerful synergy that will enable us to offer tailored and innovative financial solutions, Singhel said.
“By combining our strengths, we strive to empower individuals and businesses to navigate uncertainties with financial security. Together, we are committed to enhancing insurance penetration and promoting financial inclusion for a more secure financial future in India”, he said.
Sandeep Batra, Head of Wealth and Personal Banking, HSBC India, said, “We are happy to partner with Bajaj Allianz and are excited to bring best-in-class insurance products to our customers. This collaboration reinforces our commitment to providing seamless, one-stop financial solutions that exceed our customers’ expectations. We are further solidifying our position as a trusted financial partner and international bank of choice.”
As the only international bank in India offering a full suite of financial services, including banking, asset management and insurance, HSBC India is committed to delivering a distinctive offering to customers, he added.
Bancassurance is an insurance distribution model in which insurance companies partner with banks to sell policies. Both the bank and the insurance company benefit from this arrangement.
While the bank earns a commission from the insurance company, the insurer gains from the bank’s distribution network.
Insurance regulator IRDAI widely opened the bancassurance channel for insurers in 2022 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 ties with a maximum of nine life insurers, nine general insurers, and nine health insurers. Also, insurance marketing firms (IMF) can now enter into ties with as many as six life, general, and health insurers.