Fintotal News Analysis | Insurance Companies Take the Bank Route
Insurance Companies Take the Bank Route
Ruby Jacob, 25 Jan 2012

Banks have traditionally been the best friends of insurance companies. Bancassurance is not new in India. Through the arrangement known as bancassurance both the bank and insurance company reap benefit. The bank acts as the point of sale (PoS) for its customers to buy insurance products from the company in its JV. The insurance company provides support and training for the bank staff. Commissions on products sold are shared by both parties. Canara Bank, Oriental Bank of Commerce, PNB, Bank of India, and Union Bank of India are a few who are in the league.

Syndicate Bank is the latest bank to be approached by insurance companies to be a stake holder. Birla Sun Life, Max New York Life and Sumitomo have approached the Bangalore based bank to buy stakes in their companies. Max New York offered a 4% stake to Syndicate Bank. Accepting the offer will open up a sales channel of lakhs of its customer for the insurance company.

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