Life Insurance Corporation (LIC) has set a target of an over four-fold increase in new business income to R5,000 crore through bancassurance or bank tie-ups in the current financial year .
"We collected a first-year premium of R1,140 crore last year from bancassurance and alternate channels. This year, we are targeting to garner R5,000 crore," A K Sahoo, executive director, LIC, told reporters on Tuesday.
The state-owned life insurance giant has tied up with financial services distribution firm Net Ambit for better penetration of its products in the Tier-2, 3 and 4 cities, and generate business worth R500 crore in the next three years.
Net Ambit currently has a presence at 140 locations in the country, which it plans to expand to 250 by March, 2011
LIC garnered R800 crore through its tie up with the nine public sector banks last year. Sahoo said LIC would expand the number of partners and will focus more on getting business through these partners.
"We are looking into having more number partners with us. We will also expand our bancassurance network," he told reporters.
With a 73 per cent market share, LIC currently has 39 banks, 510 corporate agents and 125 insurance brokers as bancassurance and alternate channel partners.