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Bharti Axa banks on finance firms to sell its products
Friday, 18 January 2008, 17:45 IST
Chennai: Private life insurer Bharti Axa Life Insurance Company is eyeing non-banking finance companies (NBFC) to distribute its products, said a top company official Thursday.
Terming Bharti Axa as part of the second wave of private life insurers in India, V. Srinivasan, chief financial officer, said that NBFCs are well placed to distribute life insurance products.
The 
3.93 billion capital company has recently appointed Citi Financials to sell its life insurance policies.
"Like banks, NBFCs are offering different kinds of retail loans and they can tap their client base for our products," he said.
According to him, it is lending teams to banks that are more efficient in selling a life insurance policy than the team that canvasses for deposits.
"More than the depositors, it is the loan takers who are receptive to the idea of buying a life insurance policy. Given this, NBFCs can effectively sell life insurance products," he reasoned.
It is difficult for those who have been licensed during the last one year to find banks to sell insurance policies.
For one, the banks have already signed up with other life insurers. Secondly the life insurers are not able to meet some of the bank demands like commission up to 70 percent and upfront fees of some million rupees.
Srinivasan said Bharti Axa is adding 125 new branches to its existing branch network of 77 units.
Launching the company's first pension product, Dream Life Pension, a unit-linked insurance policy (ULIP), Srinivasan said the product offers flexibility to the policyholder to increase or decrease his/her annual premium outgo based on the revenue stream.
Bharti Axa plans to earn around 3 billion from this product alone.
Declining to disclose the company's plans to increase the agency force, he said the average premium earned per policy is around 24,000.
Source: IANS
3.93 billion capital company has recently appointed Citi Financials to sell its life insurance policies.
"Like banks, NBFCs are offering different kinds of retail loans and they can tap their client base for our products," he said.
According to him, it is lending teams to banks that are more efficient in selling a life insurance policy than the team that canvasses for deposits.
"More than the depositors, it is the loan takers who are receptive to the idea of buying a life insurance policy. Given this, NBFCs can effectively sell life insurance products," he reasoned.
It is difficult for those who have been licensed during the last one year to find banks to sell insurance policies.
For one, the banks have already signed up with other life insurers. Secondly the life insurers are not able to meet some of the bank demands like commission up to 70 percent and upfront fees of some million rupees.
Srinivasan said Bharti Axa is adding 125 new branches to its existing branch network of 77 units.
Launching the company's first pension product, Dream Life Pension, a unit-linked insurance policy (ULIP), Srinivasan said the product offers flexibility to the policyholder to increase or decrease his/her annual premium outgo based on the revenue stream.
Bharti Axa plans to earn around 3 billion from this product alone.
Declining to disclose the company's plans to increase the agency force, he said the average premium earned per policy is around 24,000.
Source: IANS