Tie Up with State Bank of India
State Bank of India, the country’s largest Bank and New India Assurance Co. Ltd, India’s largest non- life insurance company have tied up for distributing general insurance policies of New India through SBI’s branch network across the country.
A memorandum of understanding (MoU) to this effect was signed by representatives of the two companies on Monday. The agreement was signed by Lakshman Raja, general manager cross-selling SBI on behalf of the bank and AV Purushothaman, director and general manager New India Assurance.
SBI, has of late, been laying emphasis on cross selling various products to its customers. It has already become Corporate Agent of SBI Life Insurance Co. Ltd for life insurance business. SBI Life’s products are now being sold by around 1000 SBI branches. Mutual Fund products of SBI Mutual Fund are also now being sold through select branches of SBI. Similarly, SBI Credit Cards are also sold through SBI’s branch network. While all these products are from SBI’s own stable, the tie up with New India will be a first for SBI in vending a third party’s product.
New India as the largest non-life insurer in the country is the first general insurance company to cross Rs.4000 crs premium mark last year having booked overall premium of Rs.4812.79 crs. The Company has been reaffirmed ‘A’ Excellent rating for the 4th consecutive year by A.M. Best (Europe). For New India a tie up with SBI, the country’s largest bank with a 9000 strong branch network is a major boost. Bancassurance as a distribution channel is assuming increasing important for both life and non- life insurers.
The tie up between the two largest players in their respective fields will enable SBI to leverage its unmatched branch network and customer base to cross sell a range general insurance products and thus open up a new revenue stream. For New India, the tie up with SBI will enable it to tap into SBI’s huge network and customer base.
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