Life insurers are seeking partners in the banking sector

Indian life insurers are willing to open their capital to banks in order to increase their market shares through bancassurance.
These intentions became even more obvious since a dozen companies have responded favorably to the advances of Punjab National Bank (PNB).

PNB, which has a large network, had expressed the wish to take stakes in the capital of a local insurer. The bank has reached an agreement with MetLife, stipulating that PNB enters into its capital up to 30%. In 2010, Axis Bank has acquired 4% in Max New York Life’s capital, allowing the insurer to jump from the seventh position in the market to the third one.