Ageas Federal Life Insurance hopes to grow its distribution footprint this fiscal year with partnerships and bank tie-ups after IDBI Bank ceased selling its products.
“For the next three to five years, the goal is to strengthen our topline and our distribution footprint. This would go through a combination of proprietary channels such as agencies, groups, online play and also inorganic,” said Vighnesh Shahane, Managing Director and CEO of Ageas Federal Life Insurance.
IDBI Bank contributed around 50% of revenue through its distribution, Shahane said, adding that in the past three years it had stopped selling the insurer’s products.
Private sector life insurance hopes that with IRDAI’s open architecture policy, it can find a banking partner.
“The inorganic opportunity would be in terms of a partnership or joint venture with a retail bank,” Shahane said. Activity area in a recent interview.
“We have been in talks for three years but most banks already have partnerships. We have to keep talking and waiting for a partnership. Most of the good banks are already taken,” he noted.
Federal Bank, which has a 26% stake in the insurer, has stepped up its distribution, however, Shahane said.
“IDBI Bank has moved, but Federal Bank is up 40% year-over-year in the last three years,” he said, adding that that doesn’t make up for IDBI Bank’s loss, however. .
The insurer is also optimistic about Ageas increasing its stake in the company to 74%. Shahane said this will end the period of uncertainty and will also help the business in terms of domain expertise and knowledge as well as IT improvements and improved customer journey.
“The uncertainty around the business is ending. There is a lot more attention and commitment from the foreign partner,” he noted.
He also expressed his satisfaction with the company’s performance and noted that it had managed to do well despite the challenges of the Covid-19 pandemic.
May 20, 2022