Coimbatore: One of India’s leading life insurance companies, Tata AIA Life Insurance Co Ltd, today announced a strategic alliance with City Union Bank (CUB) to offer life and health insurance solutions to consumers in the bank. This partnership brings together two respected consumer-centric brands that have been part of the Indian consumer landscape for over a century. This partnership will help City Union Bank customers (existing and new) benefit from Tata AIA Life’s diverse and innovative products and services covering term insurance, savings and investment, retirement and health. It will enable Tata AIA Life to expand its distribution across CUB’s more than 700 branches and contribute significantly to increasing the penetration of life insurance in the country. Another point of synergy between the two entities is their focus on delivering a digital experience and mobile-first solutions to consumers.
City Union Bank Limited is a young, centuries-old private sector commercial bank that has been providing the finest services in the banking industry since 1904. The bank is headquartered in Kumbakonam, the temple city of Thanjavur district in Tamil Nadu. The total activity of the Bank as of March 31, 2022 is Rs. 88,846 crore with deposits of Rs 47,690 crore and advances of Rs 41,156 crore. The Bank’s net worth as of March 31, 2022 was Rs 6,550 Crores with a Capital Adequacy Ratio (Basel III) of 20.85%. The CUB has a network of 727 branches with 1732 ATMs spread across the country.
Tata AIA is backed by India’s most trusted group, Tata, with a rich history of over 150 years, and AIA, Asia’s largest life insurance group established over 100 years ago. Rated no. 5, based on Individual Weighted New Business Premium (IWNBP), Tata AIA Life recorded impressive growth for FY22. The Company recorded an IWNBP income of INR 4,455 Cr. for the financial year 2021-22, a growth of 30% from INR 3,416 Cr. in the previous year. The company has also maintained its preeminence in the protection segment and continues to dominate the space among other private insurers. Retail sum insured (life insurance solutions known as Pure Term policies) underwritten by Tata AIA Life has changed from INR. 218,000 cr. to 307,804 Cr INR, representing a growth of 41% compared to FY21.
Dr. N Kamakodi, MD and CEO of City Union Bank said, “We are delighted to be associated with Tata AIA Life Insurance Company, a fundamentally sound and trustworthy organization for soliciting life insurance business. life. Our partnership with them is sure to provide our consumers with best-in-class life insurance solutions. As life insurance has become a crucial product for every individual, our alliance will enable our consumers to select the best investment solutions for a secure financial future.
Commenting on the combination, Venky Iyer, President and Chief Distribution Officer, Tata AIA Life Insurance, said: “We are delighted to partner with City Union Bank, one of the country’s leading private sector banks. This partnership will allow us to bring our life insurance proposals closer to aspiring Indian citizens. With City Union Bank, we are committed to supporting consumers on their journey to meeting their financial needs such as protection, savings, health, retirement and wealth creation. We are also keen to provide effective financial solutions to City Union Bank’s large MSME clientele. We are confident that this partnership will be a win-win for us, City Union Bank and, more importantly, consumers.
India, with a population of over 140 crore, is still in its infancy when it comes to life insurance. According to estimates, the Indian market represents only 1.5% of the world’s total insurance premiums despite the size of its population. The coverage provided by life insurance or traditional health insurance is low in the country as most of the population resides in rural areas which have so far remained undeveloped.
This partnership comes at a time when people are recognizing the importance of having financial protection while relegating the purchase of life insurance to a later stage. Through this combination, the two partners will be able to promote insurance awareness and financial planning to consumers, with ease, across physical and digital consumer platforms.
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