Mr. Anuj Gulati, Managing Director and CEO of Religare Health Insurance Company Ltd. announced the distribution of its insurance products through the bank’s network. He said that the company is identifying the possibility of tie ups with several banks (both private and public sector banks) as a part of their business plan to increase bancassurance business.
This decision came after market regulator Insurance Regulatory and Development Authority permitted banks to act as a broker and sell insurance products of more than one insurance company. Bank, being a broker for multiple insurance companies, can offer wide range of products to its customers. However, approval from Reserve Bank of India has yet to give permission on this and it is still not apparent that the regulator RBI will allow banks to act as a broker.
Mr. Gulati further clarified that in a corporate agency model a bank can represent only one insurance company (life and non life insurance company) and sell its products only, thereby limiting the choice of the customers. The corporate agency model is 1:1 relation model.
In September 2013 Religare Health Insurance Company entered into an agreement with Union Bank of India, as its first bancassurance partner, to sell its insurance products.
