Chennai, Nov 15 (UNI) Cholamandalam MS General Insurance Company, a joint venture between Murugappa Group and Mitsui Sumitomo Insurance of Japan today announced a bancassurance tie-up with IndusInd Bank.
Through this alliance, Cholamandalam MS will get the support of a bank, which has strong presence in the retail markets with sizeable client base and in turn IndusInd bank would complete its array of products required for its wealth management services to its customers.
This partnership was expected to generate significant returns targeting the first premimum income of Rs 100 crore after one year of the launch of operations, IndusInd Bank Managing Director Bhaskar Ghose told newspersons here.
"Our customers will be able to access a full range of insurance products delivered efficiently at acceptable prices through this alliance," he added.
Cholamandalam MS General Insurance Managing Director Anandan said increased economic activity coupled with the recent reforms in the general insurance market has increased the 'Insurance Penetration' by 4.8 per cent in 2006, virtually doubling in the last seven years.
In the first phase of the rollout plan, IndusInd Bank plans to enable at least 150 of its 172 branches to sell Cholamandalam MS policies. "This will be implemented through a special team of IndusInd Bank professionals, who will be trained by Cholamandalam MS in the best practices of insurance selling," he added.
Mr Anandan said after completing the mandatory 100-hour Insurance Regulatory Development Authority training, these officers would be designated as 'insurance executives' at branches.
IndusInd Bank has consituted a special marketing team to spearhead the bancassurance initiative in close coordination with Cholamandalam MS, he said adding this tie-up would aid IndusInd Bank in launching various group policies that would offer a competitive price and value-adds in addition to the individual market offerings.
"The tie-up will also enhance the fee earning capacity of the bank significantly," he added.