IndusInd Bank, Cholamandalam JV

IndusInd Bank Ltd has announced that Cholamandalam MS, General Insurance Co. Ltd, (Chola MS), a joint venture between Murugappa Group and Mitsui Sumitomo Insurance of Japan, announced a banc assurance tie-up with IndusInd Bank.

Through this alliance, Cholamandalam MS will get the support of a bank which has strong goodwill in the retail markets with a sizeable clientele base and in turn IndusInd Bank will complete its array of products required for its wealth management services to its customers. This partnership is expected to generate significant returns targeting the first premium income of Rs 100 crore after one year of the launch of operations.

Bhaskar Ghose, Managing Director and CEO, IndusInd Bank, said, "The alliance will benefit all concerned. Our customers will now be able to access a full range of insurance products delivered efficiently at acceptable prices. This will have the twin advantages of strengthening our relationship with existing customers and helping us acquire new clients. We expect to make this bancassuarance model a successful one with our expanding distribution network, our growing customer base, our technology strengths, and our service - oriented staff."

In the first phase of the rollout plan, IndusInd Bank plans to enable at least 150 of its 172 branches to sell Cholamandalam MS policies. This will be implemented through a special team of IndusInd Bank professionals who will be trained by Cholamandalam MS in the best practices of insurance selling.

These officers will also complete the mandatory 100-hour Insurance Regulatory Development Authority training and will be designated as 'insurance executives’ at branches. IndusInd Bank has constituted a special marketing team to spearhead the baneassurance initiative in close coordination with Cholamandalam MS.

This tie-up will aid IndusInd Bank in launching various group policies that will offer a competitive price and value-adds in addition to the individual market offerings. The tie up will also enhance the fee earnings capacity of the Bank significantly.