Private life insurance company Canara HSBC Oriental Bank of Commerce Life Insurance has entered into an alliance with the Kerala based Dhanlaxmi Bank for marketing various life insurance products.

As part of the agreement, the Bank will be a corporate agent for 3 years; however, both aim to continue this relationship for long term.

Canara HSBC Oriental Bank of Commerce Life Insurance is offering products catering to multiple customer needs spanning across retirement accumulation and guaranteed lifetime income, savings for child education, comprehensive protection through online and offline plans, savings for multiple needs through guaranteed endowment, and customized investment solution for high net worth individuals.

Speaking to reporters here on Thursday, Anuj Mathur, CEO said that Canara HSBC Oriental Bank of Commerce Life Insurance is the only company in India selling products exclusively through banks. The sale of bancassurance products through banks is considered as a cost effective distribution model for customers benefit and also witnessed a 55-60 per cent growth in life insurance policies over the last few years. He cited the trust between the bank and customers as the reason for the growth.

The insurance company with a customer base of 115 million and a pan India network of 9500 branches has garnered ₹110 crore profit in FY17, registering a 40 per cent growth vis-a-vis 38 per cent in the previous fiscal.

During the first quarter of FY18, Mathur said the company has already posted a 50 per cent growth and is getting into Tier II and III cities with a focus on many traditional products and whole life endowment plans.

With this up, Dhanlaxmi Bank is entering into a new business which would increase its profitability in the coming days, said G.Sreeram, the bank’s Managing Director and CEO. “We have consistently enhanced our portfolio to meet the diverse financial needs of customers and this alliance is a step in that direction”, he added.

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