Baroda L&G Life Insurance – the insurance joint venture (JV) promoted by Bank of Baroda, Andhra Bank and the UK based Legal and General Group (L&G), has called for a pitch for its creative and media duties and is on the lookout for Mumbai based agencies.
It is poised to launch its products within a few months from now and plans to empanel three agencies for about three years. For this, the company is inviting presentations from 25-30 agencies.
Baroda L&G Life Insurance will bank on the customer base of Bank of Baroda and Andhra Bank – two players which have been present in the market for a long time – to cash in on the already cluttered Indian life insurance segment, which boasts of close to two dozen players. The two Indian banks have more than 40 million customers, who could be captive clients for the proposed insurance business.
Together, these banks have a network of about 4,000 branches across the country. The JV also plans to benefit from the strong presence of the two banks in the rural and semi-urban markets. The company, as of now, plans to stick to life insurance products only.
Andhra Bank has some experience in the insurance and mutual fund sectors as it has already sold mutual fund products of various companies. The bank has tie ups with mutual fund companies such as Reliance Mutual Fund, Kotak Mahindra Mutual Fund, Fidelity Mutual Fund and Birla Sun life Mutual Fund for sale of their products. The Hyderabad based bank has also entered into a MoU with two other PSU (public sector unit) banks, Bank of Baroda and Indian Overseas Bank, for forming a subsidiary in Malaysia.