Allianz Bajaj, Syndicate Bank to distribute insurance products

Our Banking Bureau
24 July 2003

Pune: Allianz Bajaj Life Insurance Company has signed a memorandum of understanding with Syndicate Bank for distributing its insurance products through the bank's pan-India branch network.

This bancassurance agreement was formalised today between Allianz Bajaj chairman Rahul Bajaj and Syndicate Bank chairman Michael Bastian. This is the second partnership of Allianz Bajaj in the bancassurance channel, the first being Standard Chartered Bank in the foreign bank category.

Says Bajaj: "Historically, life insurance has been sold in India by the ubiquitous insurance agent. With the entry of private sector insurance companies, other distribution channels like sale through bank branches are fast catching on. Syndicate Bank, with a network of over 2,000 offices and a customer base of nearly 20 million, is a progressive and successful public sector bank. I am confident that this partnership will bring in significant synergies and help further extend an additional financial service to the customers of Syndicate Bank."

Allianz AG is one of the world's leading bancassurance providers, with 26 current bancassurance agreements in place around the world. Through these agreements, Allianz products are sold through 15,000 bank branches globally. The bancassurance channel of Allianz Bajaj commenced operations in December 2001 and presently contributes approximately 25 per cent of the premium collected by Allianz Bajaj.

Says Allianz Bajaj CEO James Walton: "Allianz Bajaj has agreed to the route of selective bank tie-ups and therefore welcomes Syndicate Bank as its bancassurance partner. We have one of the most successful bancassurance models and have with us a team of professionals with extensive local and international bancassurance experience."

Allianz Bajaj Life Insurance started operations in October 2001 and the period from April 2002 to March 2003 marks the first full fiscal for the company. The company has recorded impressive growth on every front during this fiscal. During the quarter April-June 2003, the company sold over 37,000 policies and collected a premium of about Rs 30 crore.