Federal Bank, a private sector bank, has entered into a Bancassurance tie-up with Bajaj Allianz Life Insurance, a private life insurer.
This partnership will enable Federal Bank’s customers to seamlessly access Bajaj Allianz Life Insurance’s products, across the Bank’s extensive network in India.
This strategic partnership aims to leverage the combined strengths of Bajaj Allianz Life and Federal Bank. It aligns with both the companies’ strategic goals and growth plans and will drive insurance penetration and market expansion.
P V Joy, SVP & Country Head, Federal Bank said, “We are pleased to announce a strategic Corporate Agency Bancassurance partnership with Bajaj Allianz Life Insurance Company. This partnership aims to bring the diverse range of life insurance solutions across our touchpoints.
This association will enable us in our goal to make insurance easily accessible to everyone. We believe it will help our customers invest wisely and secure their financial future.”
Dheeraj Sehgal, Chief Distribution Officer – Institutional Business, Bajaj Allianz Life, said, “We are glad to enter into this strategic partnership with Federal Bank, as it represents a significant step towards our shared vision of empowering customers with robust financial solutions to achieve their life goals with confidence.
By leveraging Federal Bank’s extensive network and our comprehensive range of life insurance products, we aim to provide customers with seamless access to insurance solutions across various touchpoints”.
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.