The Hindu Business Line : Max NY Life keen on more bancassurance tie-ups

HAVING entered into bancassurance alliances with seven banks in less than one year, Max New York Life (MNYL) is bullish on this distribution channel , its Executive Director, Mr Rajesh Sud, has said.

"We are looking at large bancassurance partnerships with quite a few private and public sector banks to strengthen our business ," he said.

He was here to sign a corporate agency agreement with the Andhra Pradesh Mahesh Urban Co-operative Bank, a multi-State co-operative bank with a network of 30 branches and customer base of over 2 lakh.

Addressing newspersons, Mr Sud said the insurance company had tied up with six co-operative banks and one private sector bank in the last nine months. The strategy has been to focus initially on co-operative banks that have strong customer base either on community or geographical basis for the bancassurance model.

Max New York Life has till date sold over 5.09 lakh policies with over Rs 16,700 crore in sum assured and has a capital base of Rs 466 crore. According to Mr Sud, the partnership segment currently contributes nearly 25 per cent of the business, with bancassurance accounting for 5-10 per cent.

The balance 75 per cent comes from its own network.

"We have set a target of improving the business contribution of partnership route to at least 50 per cent.

"Keeping this in view, we are now focussing on widening our distribution mix by pursuing the franchisee model, bancassurance, rural business, direct sales force involving group insurance and telemarketing opportunities and also corporate alliances," Mr Rajesh Sud said.

Responding to a query on Max New York Life's plans on acquiring AMP Sanmar, Mr Rajesh Sud said the company was not averse to growth through inorganic route. Stating that it was among the life insurers approached by the merchant bankers with offer on AMP Sanmar, he said, "We will consider if it really makes business sense. As of now, our hands are full. We are busy on strengthening distribution channels, both own and of partnerships, to grow organically."

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