Reliance Life, a private insurer operating in India, said that it had planned to explore distribution tie-ups with a number of banks. The said banks might come from the public, private and cooperative sectors. Reliance could offer a 5% stake for the planned distribution tie-ups. India's Insurance Regulatory and Development Authority (IRDA) recently allowed banks to act as brokers and sell products of more than one insurer. The move was to increase the penetration of insurance in the country. The agency is responsible in allowing banks to be a distributor for multiple insurance firms.
Reliance Life is a part of Reliance Capital, the financial services arm of Reliance Group led by Anil Ambani. Reliance Life is among few insurers in India that does not have a distribution pact with a bank.
According to Reliance Life Insurance CEO Anup Rau, the company had been given distribution opportunity. This was after the proposed plan to allow banks to act as brokers and sell insurer products.
"We are in talk with multiple banks, including commercial and co-operative, for a long-term strategic partnership and might offer a small equity stake up to five per cent to a bank of critical size and reach," said Rau.
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