On 26th February 2021, the Indian Overseas Bank(IOB), a public sector bank signed a corporate agency agreement with the SBI General Insurance to retail its insurance products to the customers of the bank.
- IOB has signed a Bancassurance for the distribution of the non-life offerings with SBI General Insurance to offer a wide range of general insurance solutions and innovative products to the customers of the bank.
Benefits of the partnership:
i.This partnership will improve the reach of insurance products in urban, tier II and III markets.
ii.This will also create awareness to the customers about the personal lines of insurance.
iii.This association will support in expanding the range of insurance products to the customers.
Bancassurance is an agreement between a bank and an insurance company where the insurance company can use the distribution channels of the bank to sell its products.
In return to this the bank receives a certain fee from the insurance company.
In India the banks are governed by the Reserve Bank of India(RBI) and the insurance companies are regulated by the Insurance Regulatory and Development Authority of India (IRDAI).
Recent Related News:
On September 14, 2020 SBI General Insurance Company Ltd(inshort- SBI General Insurance) and YES Bank signed a corporate agency agreement to distribute the products of SBI General Insurance to the customers of YES bank across India(28 states and 8 Union Territories)
The signed agreement was exchanged between Rajan Pental, Global Head- Retail Banking of YES Bank and Amar Joshi, Chief Business Officer of SBI General Insurance.
About Indian Overseas Bank:
MD & CEO– Partha Pratim Sengupta
Headquarters– Chennai, Tamil Nadu
Tagline– Good People to grow with
Founded in– 10th February 1937
About SBI General Insurance:
MD & CEO– Prakash Chandra Kandpal
Headquarters– Mumbai, Maharashtra
SBI General Insurance was started as a joint venture between State Bank of India (SBI) and Insurance Australia Group (IAG).