The two financial giants seal the biggest bancassurance.
By: Jayshal Sood
In what is touted as a biggest deal yet, LIC and Axis Bank seal an accord as per which India’s third largest private sector bank will sell LIC products.
Both institutions issued a joint statement confirming that they have signed a memorandum of understanding (MOU). As per the MOU Axis Bank branches will now sell LIC’s policies. The synergy of the two financial giants will help enhance customer satisfaction, according to a statement by LIC executive director for bancassurance Mukesh Gupta.
The term bancassurance (bank + insurance) means a partnership between a bank and an insurance company. In this an insurance company uses the bank’s sales setup to sell its insurance products to the bank’s client base.
Axis bank’s branches in Bengal, Bengaluru, and Haryana’s Panchkula will start selling LIC’s products, initially.
Headquartered in Mumbai, the bank boasts of more than 2500 domestic branches and more than 12000 ATM in India.
Life Insurance Corporation of India, popularly known as LIC, is a state-owned insurance group. LIC, too, is headquartered in Mumbai. According to its website, it has a customer base of more than 250 million people. It is the largest insurance company in India.