Life Insurance Corporation of India (LIC) is planning to enter into a bancassurance agreement with Punjab National Bank (PNB).
Under bancassurance model, the insurance products of the insurer are sold by the bank.As per the deal, PNB would distribute LIC’s products through its 4,000-plus branch network across the country. Private and public life insurers are keen to enter into bancassurance agreements with banks as they see it as the most feasible distribution model.
The ongoing economic slowdown has also strengthened the case for such alliances.