Mumbai: Private sector general insurer Future Generali India Insurance is eyeing higher penetration into rural markets for which it is tying up with co-operative banks to increase its reach, a top company official has said.
The general insurer, which has not entered into any distribution arrangement with commercial banks as yet, is also in talks with them to increase its footprint.
"Rural business constitutes around 15 percent of our business now, which we intend to increase given the large under-penetration in those areas.
To make it possible, we have tied up with around 20 co-operative banks for distributing our products," company's MD and CEO K G Krishnamoorthy Rao told reporters.
It is also in talks with commercial banks for distribution tie-ups, he added.
Recently, the regulator IRDA had come up with new guidelines for bancassurance model under which it has allowed banks to act as insurance brokers by tying up with multiple insurers.
"The new bancassurance guidelines will help increase the reach of general insurance in rural areas," Rao said.
Future Generali General Insurance reported 9.77 percent rise in gross written premium at Rs 510.78 crore during April- August period of the fiscal.
The company is a joint venture between Future Group and Generali Group of Italy.
PTI
