Insuring through alliance!

 

 

The State Bank of India (SBI) has entered into an agreement with Insurance Australia Group (IAG) in order to form a joint venture with an aim of invading into the general insurance business in the domestic market. As per the agreement SBI is subjected to hold almost 74% stake and IAG will hold the remaining 26% of it. This step is an extension to the bank’s decision of entering into a new alliance, which was taken in May 2008. As of now the alliance between the two is subjected to regulatory approvals. The major players in general Insurance sector in India like United India Insurance, New India Assurance, Bajaj Allianz, ICICI Lombard and IFFCO-Tokio General Insurance will surely have to gear up for the new competition. SBI with its new formed alliance is bound to create a market for itself in the vast growing general insurance domain.