· Partnership will make available a wide range of life insurance and wellness solutions across consumer segments of all CUB branches
· Product range to include life protection (term insurance), guaranteed and market-linked savings plans, retirement/ pension plans, critical illness and hospitalisation benefit covers.
· Step forward in Tata AIA’s endeavour towards increasing Life Insurance Penetration in India
India, July 11, 2022: One of India’s leading life insurance companies, Tata AIA Life Insurance Co Ltd, today announced a strategic alliance with City Union Bank (CUB) to offer life and health insurance solutions to the Bank’s consumers. This partnership brings together two respected consumer centric brands that have been a part of India’s consumer landscape for more than a century. This partnership will help City Union Bank consumers (existing and new) to benefit from Tata AIA Life’s diverse and innovative products and services spanning term insurance, savings and investment, retirement, and health. It will enable Tata AIA Life to expand its distribution through CUB’s 700+ branches and contribute significantly towards increasing life insurance penetration in the country. Another point of synergy between the two entities is their focus on providing a digitally enabled experience and mobile first solutions to consumers.
City Union Bank Limited is a century young private sector Scheduled Commercial Bank providing the best of services in the Banking industry since 1904. The Bank is headquartered in Kumbakonam, the temple town in Thanjavur District of Tamilnadu. The Bank’s total business as on March 31st, 2022, is Rs. 88,846 Crores with Deposits of Rs.47,690 Crores and Advances of Rs.41,156 Crores. Net worth of the Bank as on March 31st, 2022, was Rs 6550 Crores with a Capital Adequacy Ratio (Basel III) of 20.85%. CUB has a network of 727 branches with 1732 ATMs spread across the country.
Tata AIA is backed by India’s most trusted group Tata, with a rich history spanning over 150 years and AIA, Asia’s largest life insurance group established more than 100 years ago. Ranked no. 5, based on Individual Weighted New Business Premium (IWNBP), Tata AIA Life delivered impressive growth for FY22. The Company registered an IWNBP income of INR 4,455 Cr. for the financial year 2021-22, a growth of 30% as compared to INR 3,416 Cr. in the previous year. The Company has also maintained its pre-eminence in the Protection segment and continues to lead the space amongst other private insurers. Retail sum assured (Life Insurance solutions known as Pure Term policies) underwritten by Tata AIA Life has grown from INR. 218,000 Cr. to INR 307,804 Cr., a growth of 41% over FY21.
Commenting on the tie-up, Venky Iyer, President & Chief Distribution Officer, Tata AIA Life Insurance, said, “We are thrilled to partner with City Union Bank, one of the prominent private sector banks in the country. This partnership will enable us to get our life insurance propositions closer to India’s aspiring citizens. Along with City Union Bank, we are committed to partnering with consumers in their journey towards fulfilling their financial needs such as protection, savings, health, retirement, and wealth creation. We are also keen to provide efficient financial solutions to the large MSME customer base at City Union bank. We truly believe that this partnership will be a win-win for us, City Union Bank and most importantly, the consumers.”
Dr. N Kamakodi, MD & CEO of City Union Bank, said, “We are delighted about our tie up with Tata AIA Life Insurance company, a fundamentally strong and trustworthy organization for soliciting life insurance business. Our partnership with them is sure to offer our consumers the best-in-class life insurance solutions. As life insurance has become a crucial product for every individual, our alliance will enable our consumers to select the top investment solutions for a secured financial future.”
India, with a population over 140 crores, is still in nascent stages when it comes to life insurance. As per estimates, the Indian market only accounts for 1.5% of the world’s total insurance premiums despite the size of its population. Coverage provided by traditional life or health insurance low in the country as most of the population reside in rural areas that have thus far, remained untapped.
This partnership comes at a time when people recognize the significance of having financial protection yet relegate purchase of life insurance to a later stage. Through this association, both partners will be able to promote insurance awareness and financial planning amongst consumers, with ease, across physical and digital consumer facing platforms.