Star Union Dai-ichi Life Insurance eyes UP rural mkt

Star Union Dai-ichi Life Insurance (SUD Life) is eyeing the vast rural market in Uttar Pradesh for future growth.

SUD Life is in the process of collaborating with regional rural banks (RRB) in the state to penetrate deeper into the hinterland.

In this context, SUD Life has entered into a strategic tie-up with Aryavart Gramin Bank, a leading RRB in the state.

This collaboration would allow Aryavart to promote SUD Life products in its over 300 branches in the state across Lucknow, Barabanki, Farrukhabad, Hardoi, Kannauj and Unnao districts.

The company, which is a joint venture of Bank of India, Union Bank of India and Japan’s Dai-ichi, already had significant presence in Uttar Pradesh through over 1,000 branches of the two public sector banks.

“We are in the process of joining hands with another regional rural bank based in eastern UP soon,” SUD Life managing director and CEO K Sahay told Business Standard.

“The company had established its presence in the urban pocket and the RRBs would help SUD Life to harness the remote rural market as well,” he said.

So far, the company had sold over 10,500 policies in the state. Meanwhile, the company has opened its regional office in Lucknow to look after Uttar Pradesh and Uttarakhand regions.

At present, there are a dozen life insurance products being offered by the company, including three each of Unit Linked Insurance Plans (Ulip) and traditional products. Commenting on the current life insurance market in India, he said the sector was collectively incurring losses to the tune of Rs 20,000 crore.

“Due to regulatory pressures and non-remunerative structure, the insurance advisors are promoting the traditional life insurance products more than Ulips unlike a couple of months back, when Ulips were more in demand,” Sahay added.