IndiaFirst Life Insurance: IndiaFirst Life strongly believes in Bancassurance; Amid strong growth, the agency will also expand its network

• IndiaFirst Life Insurance emphasized on ‘bancassurance’
• Also expanding agency network amid strong growth
• IPO Postponed, Not Canceled; Decision depends on market conditions

IndiaFirst Life Insurance: IndiaFirst Life Insurance, an insurance company, is going to give priority to insurance distribution based on ‘bancassurance’ i.e. insurance sales system through banks in the insurance sector. The company’s Managing Director and Chief Executive Officer Rishabh Gandhi asserted that the distribution system is under close scrutiny by regulatory bodies, but still considers it the centerpiece of its distribution strategy. Gandhi also highlighted that bancassurance is at the core of the company’s delivery strategy and is yielding excellent business results.

In the current financial year i.e., the first quarter of 2025-26, IndiaFirst Life registered a strong growth of 44%. This growth is mainly due to the strong performance of their bank partners. Bank of Baroda (Bank of Baroda) by 22% and Union Bank of India (Union Bank of India) contributed to 17% growth. At the same time, sales through the company’s private agents have also grown strongly. Sales through agents have increased five times compared to last year. Although the merger of regional banks in rural areas affected distribution for a while, the reorganization of banks is now complete. So now there are indications that the situation is stabilizing.

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Substantial investment has been made to expand the agency network. However, IndiaFirst Life expects its ‘value of new business’ margin to be higher than last year’s 17.6 per cent. Rishabh Gandhi attributes this success to improved quality of business, record policy retention rate and least number of complaints from sales through ‘bancassurance’ since the company’s inception.
The company is now expanding its presence everywhere, not just limited to banks. Last financial year, more than Rs.100 crore business was done through agents. It is estimated to cross the Rs 200 crore mark this year.

IndiaFirst Life is on track to end the current financial year with 96 branches and over 10,000 agents. The company has been able to reach 25 crore customers through its bank partners, now the expansion of the agent network will help them reach an even larger population. Bancassurance accounted for about two-thirds of the company’s total business in the first quarter. The remaining one-third remained with agencies and other media. It includes broking, direct selling and digital media. Earlier Bancassurance accounted for more than 90 percent of the total business. But this is a significant change from last few years.

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IndiaFirst Life is also evaluating future opportunities in health and general insurance. But the composite is awaiting licensing clarity. The company’s IPO (IPO) are clarified as postponed, not cancelled. The timing of the IPO will depend on market conditions being favorable and growth continuing in future quarters. Timing will also depend on market conditions and external challenges being limited. The final decision will be taken by the shareholders. The company also clarified.

IndiaFirst Life maintains a minimum margin of 200 basis points between customer returns and expected investment performance. Protects both the company’s balance sheet and long-term guarantees to customers. About 75 percent of the portfolio is managed through forward rate agreements to help manage interest rate risk. LIC (LIC) said there was no impact on supply due to FRA market entry. The company may turn to bond forwards in the future depending on how the market develops in the future. Whether IndiaFirst Life accelerates expansion through agents or explores new opportunities, ‘bancassurance’ will remain the mainstay of the company.