The State Bank of India and GE Capital Services are extending their credit card marketing partnership in India to the insurance sector as a corporate agent.
SBI Cards and Payment Services Pvt Ltd is a 60:40 joint venture between the State Bank of India and GE Caps. At 1 million credit cards, it is the third largest issuer in the country.
Executives at SBI Cards said the company was planning to apply to the Insurance Regulatory Development Authority for a licence.
SBI Cards has also sought permission from the Foreign Investment Promotion Board to amend the existing foreign collaboration agreement to include soliciting and procuring of insurance business as a corporate agent.
SBI Cards wants to leverage its credit card customer base for the insurance business. There is significant revenue opportunity to cross-sell insurance products to its customers.
The company is planning to offer life and non-life insurance products of several insurance companies to existing and prospective credit card customers in India.
New India Assurance Company was earlier in talks with the SBI to sell its products. However, it is not known if the GE Caps-SBI venture will partner New India Assurance in this.
IRDA recently allowed GE Caps to conduct online training for its staff.
Training agents is a pre-requisite to selling insurance products. The State Bank of India is a majority shareholder in SBI Life, where French insurer Cardif has 24 per cent stake.
The State Bank of India has started a training programme for around 3,000 officers at a couple of centres, and proposes to extend the course to 10 centres.
In keeping with its policy of liberalisation, IRDA has allowed individual companies and corporates, including those not engaged in the insurance business, to solicit and procure business as corporate agents.
