The partnership between Canara HSBC and APGB aims to create awareness about the importance of insurance products across rural markets

Canara HSBC

Canara HSBC partners with APGB to offer insurance products in rural India. (Credit: Pixabay/Adam Radosavljevic)

India’s private insurance player Canara HSBC Oriental Bank of Commerce Life Insurance (Canara HSBC) has partnered with Andhra Pradesh’s regional rural bank Andhra Pragathi Grameena Bank (APGB) to offer insurance products.

Through the partnership, which was launched virtually due to the current COVID-19, Canara HSBC’s insurance products, such as life, health and pension, will now be sold across all branches of APGB.

Canara HSBC Oriental Bank of Commerce Life Insurance is a joint venture between two public sector banks of India Canara Bank and Punjab National Bank along with global banking giant HSBC. The company operates on a bancassurance model with insurance expertise being offered by HSBC.

Andhra Pragathi Grameena Bank (APGB) is regional rural bank started by Syndicate Bank, which was later amalgamated into Canara Bank. APGB has eight regional offices across five districts in the state of Andhra Pradesh, including Ananthapuramu, YSR Kadapa, Kurnool, SPSR Nellore and Prakasam.

The partnership between Canara HSBC and APGB is expected to provide an opportunity to create awareness about the need to have life insurance, health insurance and pension plans in rural markets, particularly during times such as now.

Through the various schemes, the two organisations aim to reach out to the people in the rural areas and help them in securing their financial future.

Canara HSBC will offer 20 traditional insurance products, initially

Initially, the insurance company plans to offer 20 traditional insurance products to APGB’s customers. Later on, the partnership will strengthen insurance penetration in Tier 2 and 3 markets in the region.

Canara HSBC Oriental Bank of Commerce Life Insurance managing director and CEO Anuj Mathur said: “We are excited to announce our first ever virtual launch of distribution tie up with Andhra Pragathi Grameena Bank – a bank that takes pride in serving the rural population by providing all banking needs and help in economic development of these regions.

“Canara HSBC OBC Life Insurance is a strong brand that is built on public sector ethos & robust governance that work on a Bancassurance model which enables us to offer our customers with best in class products and at the same time catering to all the needs at different life stages.

“We are proud to have one of the best Individual claim settlement ratio at 98.1%, with these positive attributes, we are committed to nurture our relationship with APGB and partner in their growth journey.”