Bajaj Allianz Life Insurance Company, is now doubling down on its bancassurance play that has paid rich dividends over the last five years, propelling the share of its institutional business in its overall revenue mix from about 8 per cent in 2017 to 51 per cent in 2022, a top company official said.
IRDAI’s recent regulatory move to widen the open architecture for bancassurance — allowing a bank to distribute products of 9 insurers (earlier 3) in each of life, General and health segments — has prompted BALIC to scout for more bank tie-ups and keep the growth momentum growing to scale newer heights, Dheeraj Sehgal, Chief Distribution Officer-IB, told.
“We already have partnerships with 24 banks. But this does not mean we will rest on our laurels. We will continue to be focused on growth, stay very very hungry for partnerships and continue to innovate”, Sehgal said.
“We will continue to scout for more partnerships. What we’re there to showcase to the distribution industry is that, there’s this company which has constantly been keeping customer and the distributor needs as the central point of focus and we have transformed our talent pool, our technology, our processes, innovated our products keeping these two entities at the centre of everything that we’ve done so far and, hence, we call ourselves Bespoke Bank Assurance”.
Sehgal highlighted that BALIC’s institutional business growth have recorded 5 year (FY17 to FY22) compounded annual growth rate (CAGR) of 67 per cent ( on individual rated new business).
This life insurer’s institutional business accounts for 51 per cent of overall annual premium revenue.