Bharti AXA General Insurance is exploring the possibility of tying up with banks for distribution of its products.

Close to 68 per cent of the company's products are currently distributed through the retail network while the rest is sold through alternative channels.

According to Mr N. Sampath Kumar, Chief Financial Officer, Bharti AXA, the company already has tie ups with 150 co-operative banks for distribution of its products in the rural areas.

“We do not have bancassurance network at present; we are working on developing the channel. We are in talks with several banks,” Mr Kumar said at a press meet here on Monday.

Mr Kumar said that there were certain challenges in the implementation of the draft guidelines on bancassurance put out by the Insurance Regulatory Development Authority (IRDA) recently. “The zone-wise specific coverage could be a little challenging,” he pointed out.

Growth, capital infusion

Bharti AXA aims to achieve 40 per cent growth in its new business premium this calendar year. The company's gross premiums grew by 47 per cent to Rs 776 crore in 2011. The growth in new business would come from its proposed expansions in the eastern and southern parts of the country, Mr Kumar said.

The company plans to infuse Rs 200 crore additional capital in 2012 to meet its growth target. The funds would be infused by both the promoters of the firm, he added.

Bharti AXA is a joint venture between Bharti Enterprises and AXA. The company has a paid-up capital of Rs 746 crore as on date.

shobha@thehindu.co.in

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