The bancassurance partnership between Max Life and Axis Bank could be renewed in the next 2-3 months, multiple sources told CNBC-TV18.
Bancassurance partnerships are arrangements between an insurance company and a financial institution for the purpose of sale of insurance products through the bank’s branch network.
Max Life is in an advanced stage of discussions with Axis Bank and the revised terms and conditions for the new bancassurance partnership are being discussed, said the above mentioned sources on condition of anonymity.
Max Life declined to respond to a request seeking comment while Axis Bank said it does not comment on market speculation.
The bancassurance partnership between Max Life and Axis Bank was signed in 2010 and is valid until 2021.
The potential partnership holds significance as 59 percent contribution to Max Life's new business premium (NBP) segment comes from Axis Bank's distribution reach.
Max Life's bancassurance distribution through Axis Bank grew by 18 percent in FY19.
There has been uncertainty on whether or not Axis Bank and Max Life would continue their bancassurance partnership beyond 2021 and a positive development would certainly remove the overhang on the stock.
