Bandhan Life Partners with Bandhan Bank to Boost Insurance Business
In a strategic move to expand its insurance offerings, Bandhan Life Insurance has announced a partnership with Bandhan Bank, enabling the distribution of life insurance products through the bank's extensive network of 1,700 branches. This initiative follows Bandhan Life’s acquisition of Aegon Life earlier this year and a recent rebranding exercise aimed at focusing on new business ventures.
The partnership will kick off with approximately 550 of Bandhan Bank's branches distributing two new life insurance products specifically designed for the bank's customer base. Bandhan Life's Managing Director and CEO, Satishwar B, emphasized the company’s intention to broaden its bancassurance distribution strategy by engaging with two to three additional banks in the near future.
"We are concentrating on Bandhan Bank to launch our insurance products as we pivot towards new business growth. The plan includes diversifying our distribution channels through partnerships with more banks and exploring multi-channel strategies over time", B noted.
While the legacy business acquired from Aegon Life was predominantly online, Bandhan Life is set to enhance its offline distribution channels to foster growth. The company projects an ambitious target of generating ₹300 crore in new premium business within its first operational year. Currently, Bandhan Life’s assets under management stand at ₹4,500 crore, with an annual renewal premium also around Rs 300 crore.
Officials from Bandhan Life indicated that achieving full-year profitability may take between four to five years. Additionally, the company is developing insurance savings products specifically tailored for Bandhan Bank's microfinance customers. These products are designed to have a reduced ticket size to accommodate this customer segment and will leverage Bandhan Bank’s over 4,000 small service centers for distribution.
To further its reach, Bandhan Life plans to expand its physical presence from two offices in Mumbai and Kolkata to approximately 20 offices across India within the next year.