The Hindu Business Line : Reliance Life to target Reliance Comm subscriber base

Cover drive
Joint product or co-branded solution would require IRDA approval
No comment on commission payment to Reliance Communications

Mumbai , Aug. 17

Reliance Life Insurance plans to tap Reliance Communications' 2.5-crore telephony subscriber base to market its products.

The company is considering a series of options to leverage its relationship with Reliance Communications.

"We could have a joint marketing campaign, a joint product offering, or we may simply mine the data base to send mailers or make calls to Reliance mobile customers," said Mr K.V. Srinivasan, Chief Operating Officer, Reliance Life Insurance.

However, a joint product or a co-branded solution would require approval from the Insurance Regulatory and Development Authority, he added.

Customers of RWorld, the information and entertainment portal of Reliance Communications, would also be able to pay premiums through a bank account, provided the bank is listed on the network.

Reliance Life Insurance officials, however, offered no comment when asked whether there would be an arrangement for payment of commission to Reliance Communications.

As an alternative channel for distribution, insurance companies usually tie up with banks. In the case of bancassurance, where there is a corporate agency tie-up, the commission could range from 5 per cent to 40 per cent of first-year premium depending on the commission loaded on to the product at the time of registration with IRDA.

Mr P. Nandagopal, CEO, Reliance Life, said that the company hoped to break even by 2009-2010.

It registered a growth of 627 per cent in Q1 of the current fiscal, its new business premium touching Rs 132 crore.

Multi-pronged network

"We would like to keep our portfolio balanced with 50 per cent from Unit linked plans and the rest from traditional products," said Mr Nandakumar.

The company would follow a multi-pronged distribution network. "We have an agency force of 30,000; and we are in talks with banks for bancassurance as a distribution channel," he said.

Reliance Life Insurance on Thursday launched an endowment plan with a 15-year term and a maximum sum-assured of up to Rs 10 lakh. Called `Connected to Life', the policy does not require customers to undergo a medical check.

More Stories on : Life Insurance | Strategy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Wheat prices flare up again

Depression crosses over; rain deficit stays at 2%

SBI urges ICAI to defer accounting code

Drug prices may come down more than 50 pc

Nuclear deal: PM firm on `acceptable basis'

HM appoints HDFC as advisor for Bengal land sale

Reliance Life to target Reliance Comm subscriber base

Varun Shipping dips on rate concern

Cosmo Films: Value pick

Cable operators for upward revision in CAS tariff

COAI seeks more spectrum

DoT readies revival package for ITI