IOB signs pact with Japanese non-life insurer

Public sector lender Indian Overseas Bank (IOB) today signed an agreement with Universal Sompo General Insurance Company of Japan for distributing products of the non-life insurer.

"This venture is going to increase the penetration of insurance products among the bank's customers across the country," Universal Sompo General Insurance (USGICL) Executive Chairman Omkar Nath Singh told reporters after signing the agreement, which, he said was "discussed two years ago".

"There are 32 products and we were waiting for everything to be in place so that we will be able to join hands with them (IOB) in a much better way."

He said they were also waiting approval from Insurance Regulatory Development Authority for six more products, which will be officially launched by the third week of December.

USGICL has signed a similar agreement with Allahabad Bank and would also sign another one with Karnataka Bank in one or two months, Singh said.

IOB CMD S A Bhat said that USGICL is a joint venture non-life insurance company having 19 per cent investment. "Through the agreement, both of us will grow from strength to strength in future".

To a query, Bhat said that USGICL officials would guide the Bank's employees on the products.

Later speaking to reporters, Singh said that they have set a target of achieving Rs 50 crore premium by the end of this fiscal. "We want to acquire a market share of two per cent within two-three years," he said.

The company also planned to set up 16 branches across the country, he added.