Public sector lender Union Bank of India has revamped its distribution network for insurance products after amalgamation and expanded the number of insurers whose policies it would sell to nine.
The outlets of bank will offer Insurance products of three life insurers; four general insurers and two standalone health insurers. Expansion of insurance distribution channel will help the bank increase insurance penetration.
Bank executives said Reliance General Insurance is no longer part of tie-up under new arrangement. The lender earned about Rs 128 crore through sale of Third Party products on standalone basis, predominantly insurance policies (life, health and general) in 2019-20.
The business plan for current financial year (FY21) is being finalised to reflect integrated branch network and push for higher penetration, they added.
Andhra Bank and Corporation Bank amalgamated with Union Bank with effect from April 01, 2020, a network of more than 9500 branches.
Prior to amalgamation the Bank was distributing Life Insurance products of SUD Life Insurance Co Ltd, General Insurance products of Bajaj Allianz General Insurance, New India Assurance Co Ltd and Chola MS General Insurance Co Ltd and Health Insurance products of Religare Health Insurance Co Ltd under Corporate Agency tie-up agreements.
Post-amalgamation, Bank has decided to continue corporate agency agreement with India First Life Insurance Company Limited and LIC of India under Life Insurance segment. It will have tie-up with public insurer United India Insurance under General Insurance segment and Manipal Cigna Health Insurance under Health Insurance Segment.
The continuation of the above Corporate Agency tie-ups will facilitate uninterrupted post sales services to the policy holders customers of erstwhile Andhra Bank and Corporation Bank.