LAHORE – The Bank of Punjab (BOP) has entered into an MOU with EFU Life Assurance Limited for joining hands to launch ‘Bancassurance’. Bank of Punjab President and CEO Naeem-Ud-Din Khan, EFU Life Assurance Managing Director and CEO Taher G Sachak signed the MoU on behalf of their companies.
According to the agreement, the Bank of Punjab will act as a corporate distribution agent for certain insurance products of EFU Life through its nominated or selected branches to its customers, subject to approval of the arrangement by SECP. The bank has provided quality services to various sectors of the economy and has been rated as A1+ and AA- for long term and short term, respectively.
Total deposits of the bank grew to a level of Rs 209 Billion, as of March 31, 2011. In view of the fact that the business of bancassurance has achieved tremendous success recently, and given the fact that the BOP has a vast branch network, over 1.50 Million account holders and being the first commercial bank having signed MoUs for both types of bancassurance models; referral as well as direct sales model, it is expected that the results of this business initiative will add substantial value to BOP’s operating results.
EFU Life Assurance is the largest private sector life insurance company and the largest bancassurance provider in the country. It is a preferred partner of 11 local and foreign banks in providing complete bancassurance solutions such as innovative products, marketing support, comprehensive system and prompt client servicing. The concept of bancassurance was introduced in 2003 but this sector gained traction during 2008-2009 when the banks looked for other avenues with attractive fee based or non fund based income streams.
Resultantly, this product attracted a number of banks in Pakistan, especially those with large branch network and extensive clientele. This is an attractive addition in banking services, which enables bank’s clients to have insurance policy within the bank’s branch network.
