partnerships (distribution tie-ups with banks) for enhancing its reach and productivity, as and when the banks start selling products of multiple insurers under the new regulations.
IRDA recently issued guidelines allowing banks to become licensed insurance brokers.
The new model would allow banks to offer a wider choice of products from multiple insurance companies to their customers instead of the existing conflicted practice of pushing products from a single manufacturer, Reliance Life CEO said.
"IRDA has taken an extremely progressive measure that enables banks to align their interest to their customers by offering them a wider choice of products from a larger number of life companies.
"The industry will see an exponential increase in reach and growth, once banks start selling products of multiple insurance companies," he said.
Besides a strong agent base, the company has also hired over 1,500 people under its proprietary channels, such as Life Plaza, Face-to-Face and Career Agency in the past one year, with a view to enhancing its reach and supplementing growth of agency channel.
"The proprietary channels have started showing encouraging results and we expect them to contribute at least 10 per cent to the top-line, next year onwards," he said.
RLIC registered a whopping growth in its new business premium collecting Rs 1,022 crore during the April-September period of 2013-14, as compared to Rs 571 crore in the corresponding period last year.
It has topped the list amongst non-bank promoted private life insurers in total new business premium during the first half of 2013-14 and is among the top five private life insurers in the country with an over 7 per cent market share.
It sold over 7.5 lakh policies during 2012-13 financial year and has an asset under management of more than Rs 18,189 crore (as on March 31, 2013). It recorded an over four-fold surge in its second quarter profit at Rs 136 crore in the three-month period ended September 2013.