New Delhi, Aug. 25 (PTI): Private insurer Reliance Life is exploring a distribution tie-up with several banks, including from the public, private and co-operative sectors, and may offer a stake of up to 5 per cent for the same.
The move comes close on the heels of the Insurance Regulatory and Development Authority (IRDA) allowing banks to act as a distributor for multiple insurance companies.
Reliance Life, which is part of Anil Ambani-led Reliance Group’s financial services arm Reliance Capital, is one of the few insurers in the country that does not have a bancassurance tie-up or a distribution pact with a bank.
“We are in talk with multiple banks, including commercial and co-operative, for a long-term strategic partnership and might offer a small equity stake of up to 5 per cent to a bank of critical size and reach,” Reliance Life Insurance chief executive officer Anup Rau said.
The IRDA has recently allowed banks to act as brokers and sell products of more than one insurer to increase the penetration of insurance in the country.