IndiaFirst Life ties up with five RRBs to sell its plans

25-Jul-2011
Source : Financial Chronicle

IndiaFirst Life Insurance has tied-up with five regional rural banks (RRBs) in an effort to penetrate rural markets. The company hopes to achieve Rs 100 crore business from RRBs in next two-three years, according to a statement.
IndiaFirst Life Insurance is a joint venture between Bank of Baroda, Andhra Bank and UK’s Legal & General. The five RRBs that the company has partnered with are Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank, Baroda Gujarat Gramin Bank, Nainital-Almora Kshetriya Gramin Bank and Jhabua-Dhar Kshetriya Gramin Bank, sponsored by its partner, Bank of Baroda.
The five RRBs at present have approximately 1,000 branch offices in close to 40 districts, which will increase over time. IndiaFirst has acquired 14 per cent of its business from the rural areas and has also covered over 500,000 lives in the social sector in its first year of its operations. Initially, the company plans to tie up with its partner bank RRBs and later expand to other nationalised bank RRBs and cooperative banks.
“The critical success factors for us will be achieving maximum synergy from integration, devising the right product mix for the rural customer and providing the right technological and manpower support to the RRBs,” said P Nandagopal, MD & CEO, IndiaFirst Life Insurance.