The Hindu Business Line : Bancassurance comes of age for LIC

Hyderabad, Feb. 13 The bancassurace business of Life Insurance Corporation of India (LIC) is on a steady growth, thanks to the growing interest of many banks in enhancing the fee-based income.

Led by Andhra Bank in the number of policies and first premium income, 26 banks in the country are currently eyeing a niche in bancassurance by selling insurance products of the State insurer.

“Bancassurance has come of age for us. While Andhra Bank has been ranking number one in the number of new policies and first premium income for the last two months, there is renewed interest among other banks to drive big business,” Mr Surya Roy, Executive Director and Head of Bancassurance at LIC told Business Line over the phone from Mumbai.

More sales

The number of polices sold through the bancassurance channel registered an increase of over 60 per cent in the first three quarters of the current fiscal compared to the corresponding period of the last fiscal year, the official said while declining to give the exact figures.

However, according to other sources, LIC’s new business through bancassurance was about Rs 475 crore so far in the year.

Andhra Bank, UCO Bank, Corporation Bank, Central Bank of India and Dena Bank are currently the top five banks in LIC’s bancassurance business as on January 31, 2008 as per the figures released by the corporation.

Multiple services

LIC is confident that the banks would continue to drive further growth in its business.

According to Dr K. Ramakrishnan, Chairman and Managing Director, Andhra Bank, bancassurance is a key constituent of its fee-based income. “We are very bullish on this segment and are working with LIC for further growth,” he said. The bank had mobilised about 1.4 lakh policies up to December 31, 2007.

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