Eastern Bank gets bancassurance licence

Eastern Bank has obtained a bancassurance licence from the Insurance Development & Regulatory Authority (IDRA) to start bancassurance business with insurance companies.

It is the first bank to get bancassurance licence from the IDRA for both life and non-life insurance companies after getting an approval from the Bangladesh Bank, said a press release.

The bank meanwhile signed agreements with MetLife and Green Delta Insurance Company Ltd.

Bancassurance is a partnership between a bank and an insurance company where a bank sells insurance products through its distribution channels.

It can be a new opportunity for Eastern Bank to diversify its income stream by earning commission-based income without any additional risk, capital or liquidity.

This approval from the regulatory body will unleash a myriad of opportunities and take the insurance industry forward, the press release added.