City Union Bank partners with Aditya Birla Health Insurance, Royal Sundaram General Insurance

CHENNAI: City Union Bank (CUB) and Aditya Birla Health Insurance have announced a tie-up for distribution of health insurance products through the bank’s network.
While this is the 14th agreement by Aditya Birla Health Insurance with a bank for the bancassurance partnership, CUB has already entered into MoUs with two other health insurance players for the purpose.
On the other hand, Royal Sundaram General Insurance Co Limited has also entered into a bancassurance partnership with CUB on Monday. This arrangement will enable the customers of the bank to have easy access to general insurance products from Royal Sundaram across its 727 branches, a statement said.
Aditya Birla Health Insurance with a market share of 12% in the standalone health insurance will offer unique products for the customers of CUB with the health insurer is looking at having a strong presence in the southern states. Maynak Bathwal, CEO, Aditya Birla Health Insurance, said 60% of their business comes from banks.
“We were covering about 19 million lives at the end of last financial year. We are looking at 40% growth in the current fiscal,” he added.
N Kamakodi, MD & CEO, CUB, said the bank branches would have a designated officer who will explain the products offered by different insurance companies that the bank has tied up. “We have not fixed any target on volume of business that would be generated from the distribution insurance products for this financial year,” he said.