It is also planning to distribute its product in Japan through Nippon Life.
Reliance Life Insurance is transforming its distribution strategy by adopting the practices of Nippon Life, its foreign partner, in order to grow its customer base. Currently, the insurer in drafting a strategy on how can they utilize the banking channel for distribution. A month back, the insurer introduced a fixed stipend model to strengthen its IFA base.
The insurer is currently in talks with few banks and is offering them a minority stake of up to 5 percent to enter into product distribution alliance. “We are currently looking at a bank partner of significant size and are in touch with a couple of banks for alliance. If a firm in five years can create value for us, we are open to give it an equity stake, up to 5 percent at today's valuation with guarantee to buy them back at future valuation,” said Malay Ghosh, President and ED, Reliance Life.
The insurer is currently looking at public sector banks. The company is also looking at opportunities to tap the Japanese market through its foreign partner.