Mashreqbank and Oman Insurance (OIC) have joined hands to offer 'Bancassurance' to corporate clients. By utilizing the bank's distribution network, insurance companies are able to reduce their distribution costs and pass on the benefit to their customers.
Since its inception in France in the thirties, Bancassurance has become immensely popular in most parts of the world. In the advanced countries in the West, it accounts for almost 25 percent of all corporate insurance. However, it remains a virgin territory in the United Arab Emirates (UAE) and the Gulf region.
General Manager of OIC, Abdul Mutalib Mustafa, estimates the total UAE insurance market at about 3.2 billion Emirati dirhams ($871 million) in premium income per annum. Last year OIC's premium income was Dh 255 million, giving it a market share of about eight percent.
Mustafa sees Bancassurance as a largely untapped market in the UAE. “OIC, the second largest insurance company in the UAE, by joining forces with a leading bank such as Mashreqbank to introduce Bancassurance products, will create a sizeable new market in the insurance business.” He added that the agreement is not restricted to the UAE but covers all AGCC countries. — (menareport.com)
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