Mumbai: Tata AIG Life Insurance Company has announced a strategic tie-up with Singapore's DBS Bank. The bank will market the products and services of Tata AIG Life Insurance through its branch network across India.
Besides enhancing its fee-based income, DBS Bank – which is the largest bank in Singapore, and the fifth largest banking group in Hong Kong - will be able to offer a larger range of wealth management products and services to its customers.
"DBS Bank is expanding its footprint in the region and it is very clear that India is one of the main engines of a resurgent Asia," says Frank Wong, vice chairman, DBS Bank. "We are strongly committed to this country and are investing heavily in strong partnerships to build our franchise here."
According to Farrokh Kavarana, chairman, Tata AIG Life Insurance, the two institutions "share similar values towards business and customers and I am confident that this would help in creating a long-lasting relationship. These are exciting days for Tata AIG Life and the partnership with DBS Bank would open up new opportunities."
Trevor Bull, managing director, Tata AIG Life notes that the need of the hour is to provide complete and trustworthy financial solutions under one roof.
AIG companies worldwide have been known for pursuing many successful bancassurance ventures and "our experience in this area will prove critical to the partnership. There are tremendous synergies to leverage," Bull adds. "We are certain that a tie-up with an international institution like DBS Bank will contribute significantly to our growth in India."
The Indian insurance market has witnessed dramatic changes over the last few years with the opening up of the industry to private and foreign participation. The industry grew by over 50 per cent and the bancassurance segment has been a major contributor to the growth in the industry.
As per regulations, a bank is allowed to align itself with only one life insurance company. Pranam Wahi, general manager and CEO, DBS Bank India, notes that the bank has very high expectations of this alliance and was committed to making it a benchmark amongst successful bancassurance tie-ups.
"DBS Bank India sees the product offerings of Tata AIG Life Insurance as an intrinsic component of our recently launched wealth management services," adds Wahi.