ICICI Prudential Life Insurance has roped in India Post to shore up business and regain some market-share that it lost in the recent past. The life cover company held the first position in terms of total premium income among private insurers since it began operations in December 2000 but have lost it to other players off late.
During October 2009, ICICI Prudential enjoyed a market share of 5.54% with a total premium income of Rs 2,588.01 crore, while for SBI Life Insurance it was 6.58%.
SBI Life managed a 12.56% growth in total premium income to Rs 3,074.20 crore during April-October 2009 from Rs 2,731.14 crore in the previous corresponding period. During the same period ICICI Pru's total premium income, declined some 33% to Rs 2,588 crore from Rs 3,871 crore in the previous period.
The tie up will immensely help us with the kind of reach India Post has in rural India. There are 1,55,204 post offices across India and 90% of them are in rural areas. It covers 69% of the Indian population and accounts for as much as 45% of the country's total household income.
India Post has 22 circles of which ICICI Prudential Life has rolled out services for distribution of life insurance and pension products in seven circles including Bengal. The other circles are Gujarat, Andhra Pradesh, Uttarakhand, Karnataka, Bihar and Madhya Pradesh.
The agreement entered into by ICICI Pru with India Post is an referral arrangement. Under this agreement officials in a selected post offices will refer its customers to ICICI Prudential officials stationed at those offices. The insurers currently has seven bancassurance tie-ups and besides ICICI Bank.
