The Hindu Business Line : State Bank, IAG tie up for general insurance

The company, which would be a 74:26 joint venture between SBI and IAG, is yet to approach the Insurance Regulatory and Development Authority (IRDA) for the necessary approvals.

The company plans to commence business in the next financial year, a press release issued by the company said.

“Insurance penetration in India is very low and the general insurance industry is expected to grow at a brisk rate of 15-20 per cent over the next 10 years,” said Mr O.P. Bhatt, Chairman, SBI.

Leverage network

SBI plans to leverage its brand equity and extensive distribution network to provide protection to people in rural and semi-urban areas.

IAG has operations in Australia, New Zealand, Thailand, Malaysia, China and the UK through various brands.

The joint venture is part of IAG’s strategy to pursue select international general insurance opportunities, said Mr Michael Wilkins, Managing Director and CEO, IAG. The entry into the Indian market will support IAG’s longer term growth and profitability, Mr Wilkins said.

SBI already offers life insurance products through its subsidiary, SBI Life Insurance Company, which is a joint venture between SBI and the French financial services major BNP Paribas.

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State Bank, IAG tie up for general insurance