Axis Bank becoming a promoter of Max Life Insurance Company Limited has reduced the pressure on the life insurance company to diversify its distribution channel. The private lender accounts for 55-60% of the insurer’s sales and this was creating pressure on Max Life to ensure certainty of relationship.
Prashant Tripathy, MD & CEO, Max Life, stated that the transaction removed uncertainty over third-party distribution channel. Axis Bank as a promoter makes the private lender a permanent, stable distribution channel.
Axis Bank has been distributing Max Life’s products for almost a decade. Tripathy said that with this bancassurance partnership becoming a joint venture, there will be deeper tech integration and use of analytics-based technology.
