Reliance General expects three-fold rise from Bancassurance

Betting big on bancassurance, Reliance GeneralInsurance expects three-fold jump in premium collection to Rs 300 crore in the next three years through bank distribution channel. "Open bancassurance architecture would bring in greater choice to the customers in selecting the insurance products. As of now, we have less than 3 per cent of our business coming from banks. We see this number touching 10 per cent in next three years," Reliance General CEO Rakesh Jain said. In absolute terms, premium collection by selling insurance policy through bank branches would go up Rs 300 crore, he said. 

The company has already started exploring for partnership with banks and hopes to forge a few alliances this year. The insurer last week announced its first partnership withIndusInd Bank post liberalisation of bancassurance norms. IRDAI recently announced open architecture for general insurance companies allowing banks to sell policies of multiple insurers. The norms came into effect from April 1, 2016. 

"A large number of PSUs, private and small private banks will look at reviewing their contracts this year. We hope to conclude at least three big partnerships this year which will help us ramp up our business and offer segmented products to a wider array of customers" he said.