Canara HSBC OBC Life, Dhanlaxmi Bank enter in bancassurance agreement

Private life insurance major Canara HSBC Oriental Bank of Commerce Life Insurance tied up with Kerela-based Dhanlaxmi Bank for aiding the marketing and distribution of its life insurance products.

In accordance with the agreement, the insurance company will be offering life insurance products to the customers of Dhanlaxmi Bank, while the bank will also be a corporate agent of the insurance major for a period of 3 years.  

Canara HSBC Oriental Bank of Commerce Life Insurance, the only insurer in India selling products through banks, provides products covering a variety of needs including retirement accumulation, child education, comprehensive protections, as well as customised investment solution.

The company’s strategy to sell bancassurance products through banks is sought as a cost effective distribution model, enabling the company to pass on the benefit to the customer. The following distribution model recorded a 55-60 per cent growth in life insurance policies in the past years on the reliable relation between the bank and the customers.   
      
Canara HSBC Oriental Bank of Commerce Life Insurance has a customer base of 115 million through a network of 9500 branches across India. The company posted a Rs 110 crore profit in FY17, registering a 40 per cent increase in the profits in comparison with the profits posted in the previous fiscal. While the company has recorded a 50 per cent growth in the operations in the first quarter of FY18 itself.