LIC ties up Axis Bank as Bancassurance Partner
India's largest insurance Company, Life Insurance Corporation ties up with Axis Bank as a bancassurance partner. LIC India has signed agreement with Axis Bank as its bancassurance partner where Axis bank will deliver LIC's product to its customer.
LIC of india, which is india's largest life insurance company which have a market share of 76.8% in policies and 70.4% in first premium, while Axis bank is India's third largest private sector bank which have 300 branches.
This patnership is one of the largest Bancassurance partnership after the Insurance Regulatory and Development Authority of India (IRDAI) regulation issued for banks.
In primary phase, the Axis bank will deliver LIC's life insurance product to its branches in West Bengal, Bangalore and Harayana – Panchkula. Axis bank will also offer post sale services such as premium collection and renewal of policies to its customer.
Executive Director of Bancassurance, Mukesh Gupta said that “The two major organisations like LIC and Axis bank would enable them to combine and utilise the synergies for enhancing its customer satisfaction and for delivering social objectives of the nation”.
According to last five years report, the Life Insurance business at Axis bank has grown at a Compound Annual Growth Rate (CAGR) of over 25%. Executive Director and Head Retail Banking of Axis bank, Rajiv Annad said that banks have to increased their roles and regulation in their insurance distribution with bancassurance.
Rajiv Annad also said that bank will continue to invest in disruptive technologies to convert their customer requirements into actionable insights.
Life Insurance Corporation is promoter of Axis Bank. Axis bank is the second largest shareholder which have 12% stake. But the largest shareholder in india is the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI).