For Quick Alerts
For Daily Alerts

SBI Not To Sell Insurance Plans Of Other Companies


Even though Irda has allowed banks to tie-up with three insurers from each segment of life, non-life and health to sell their products, State Bank of India has said it will only market schemes of its subsidiaries.

SBI Not To Sell Insurance Plans Of Other Companies

As per a notification issued by the regulator on September 15, banks are now allowed to tie-up with insurers to sell products through their branches. However, it has not been made mandatory for banks to go for such partnerships.

SBI has tied up with Insurance Australia Group (IAG) for its general insurance venture and with Cardif for life insurance business. "We entered into some contractual obligations with our foreign partners at the time of signing the JV agreement with them. As it is not mandatory (to sell products of other insurance firms), we are not looking at it right now," SBI Chairperson Arundhati Bhattacharya told PTI.

The State-run lender currently sell schemes of its subsidiaries (SBI Life and SBI General) and this arrangement will continue, she said.

However, she said the bank is not against brokers being allowed to appoint sub-brokers to sell insurance plans as it will help increase insurance penetration. "The bank branch mode is a very different kind of sale model.

We use these branches to sell only low margin products which are also simple and easy to sell over the counter. But when it comes to complex products, it can be done by sub- brokers. "Insurance penetration is so low that I don't think it will make any difference to us.

I believe both the agency and bancassurance channels can co-exist," she said. SBI has hired consultancy firm PwC to carry out the valuation of its general insurance joint venture, SBI General.

Similarly, its foreign partner IAG has roped in Deloitte for valuation of SBI General. However, hiring of consultants for conducting the valuation exercise of SBI Life was still on from both sides -- SBI and its foreign partner Cardif.


Read more about: sbi insurance irda
Story first published: Saturday, September 26, 2015, 12:38 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more