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ICICI Bank-promoted ICICI Prudential Life saw around 12% increase in contribution from other banks to its retail business through bancassurance tie-ups in the last four-five years.
In the first half (H1) of this fiscal, the bancassurance channel contributed around 40% to the life insurer’s retail business. Around 23% of the retail business came from ICICI Bank, while 17% was from other banking tie-ups.
“Contribution from other banks has increased from around 5% to 17% over the last four-five years. The contribution from other banks rose mainly in the last 18 months, as during this time, the company added a significant number of bank partnerships,” said Amit Palta, chief distribution officer, ICICI Prudential Life Insurance.
Agency channel accounted for around 31% of the retail business in H1FY23.
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“We have a total of 30 bank partnerships with us. So, all the other 29 bank partnerships outside ICICI Bank are now contributing around 17% to our retail business. Some of the major names that we added under overall bancassurance channel are IDFC First Bank, RBL bank, Induslnd Bank and AU Small Finance Bank. These are the four most significant players who have contributed to overall share of the bancassurance from other banks,” Palta told FE.
He said the insurance company is making efforts to grow its every distribution channel. “Contribution of a channel to the total business is a function of how well this channel does and how well other channels do. I am absolutely fine with other banks contribution staying at 17%, if ICICI Bank’s contribution grows even more and direct channel grows further. Channel composition is an outcome. Our effort is to grow every channel,” he added.
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The company’s new business premium witnessed a year-on-year growth of 13.9%, from Rs 6,461 crore in H1FY22 to Rs 7,359 crore in H1FY23. Value of new business increased by 25.1% to Rs 1,092 crore from Rs 873 crore in H1FY22. The VNB margin for first half stood at 31.0%, up from 27.3% for the year-ago period.
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