DHFL Pramerica Life Insurance Company has signed on Kerala-based Dhanlaxmi Bank as its bancassurance partner, under which the latter will distribute retail and group life insurance products to its customers across 260 branches in India.
Speaking on the occasion, G Sreeram, Managing Director and CEO, Dhanlaxmi Bank, said the bank has consistently enhanced its portfolio to meet the diverse financial needs of its customers.
“We stand to get even more customers for normal banking business thanks to the partnership with DHFL Pramerica. It will enable us to strike a good balance with servicing the policies.”
Both sides of the income stream are set to grow, he said. On one side, the savings bank account balance will grow, thanks to payment of premium on time. And on the other, the commission being passed on with each paid-up premium will add up to a tidy sum.
Sreeram said that the bank anticipates an annual incremental income of ₹20-30 crore from this distribution business. This is significant income since the bank has just come into black, posting a net profit of ₹7.99 crore in the latest quarter.
The policies will be serviced through the bank. The front desk will act as a point of contact for service of existing customers as well as those who join fresh.
Anoop Pabby, Managing Director and CEO, DHFL Pramerica, said his company will work to increase penetration of life insurance by offering segmented products through digital and Customer Relationship Management (CRM) capabilities as well as by making insurance more accessible.
With this tie-up, the company is in a strong position to consolidate its presence in Kerala, Tamil Nadu, Andhra Pradesh and Karnataka.
The southern region is an important market, and a strong distribution channel is a strategic move towards further strengthening our presence in the region and enhancing the company’s distribution footprint across the country, Pabby said.
P Manikandan, Chief General Manager, Dhanlaxmi Bank, said the tie-up will further increase the insurance penetration in the region.