Universal Sompo General Insurance Co. Ltd. (USGICL) has signed an agreement with Indian Overseas Bank (IOB) to distribute its products across selected branches. USGICL was formed as a joint venture with Indian Overseas Bank, Allahabad Bank, Karnataka Bank, Dabur Investments and Sompo Japan Insurance Inc. O.N. Singh, executive chairman, USGICL said, “Though it took us a long time to commence our operations due to various reasons, we are confident of achieving our target. We have put everything in place and are geared up to take off in a big way.” 

IOB is one of the forerunners among the public sector banks to make a foray into selling insurance products and the bank had earlier entered into general insurance business with corporate agency arrangement with the National Insurance Company, and subsequently shifted to United India Insurance Co to tap the potential of captive general insurance business and for distribution of general insurance products. 

IOB has an equity participation of 19 per cent and the share of USGICL is 26 per cent. Dabur is a financial partner with 10 per cent stake. The total equity capital is Rs. 235 crore. IOB has identified 16 branches across the country to distribute insurance products. A dedicated officer will be appointed to coordinate with each of the bank assurance partners to move things fast, while avoiding delay in collecting the premiums as well as claims settlement. According to O. N. Singh, the company has 32 products in place and is planning to launch 6-8 more products after getting the clearance of the Insurance Regulatory and Development Authority (IRDA). The company has recruited 250 people. The insurance scenario is changing fast with a lot of regulatory changes in the sector. The motor and health insurance sectors are growing faster than the regular products such as fire insurance. USGICL is eyeing a 2% market share in the next two years. Singh states, “With the number of products, proper distribution network and marketing set up, the company believes that it could achieve the target”