LIC Housing arm to be United India’s biggest corporate agent

LICHFL Financial Services, the financial services subsidiary of LIC Housing Finance Ltd (LICHFL), itself a subsidiary of the Life Insurance Corporation (LIC), is set to emerge as the biggest corporate agent of general insurer United India Insurance.

The two state-owned companies on Monday signed a memorandum of understanding to this effect.

United India Insurance’s chairman and managing director G Srinivasan said the company currently has around 100 corporate agents, who bring in “10-12% of our business.” LICHFL Financial Services will be the company’s biggest corporate agent, he said.
Current regulations permit a company only two tie-ups —- one with a general product firm and another with a life insurance company.

United India is looking to increase its agent base from the current 30,000 to 1 lakh by March 2012. It has established marketing units at 33 different locations across the country and is targeting a total of 50 offices this year.

The company has also filed four new products with the insurance regulator for approval, of which 2 are from health and 2 from motor insurance.

“The products in health are completely new, while the ones in motor are variations of existing ones,” said Srinivasan. United India has around 150 products currently.

Following this tie-up, LICHF Financial Services plans to recruit 2,000 employees across the country, up from around 600 employees today.

The goal is to reach 20,000 homes this financial year, chief executive officer Shobhana Murali said.