Star Union Dai-ichi Life Insurance Company Ltd, the proposed new insurance venture promoted by Bank of India, Dai-ichi and Union Bank, has decided on the agencies that would handle its creative duties. The agencies empanelled for the business are Rediffusion Y&R, O&M India, Interpublic and Madison. The decision was arrived at following a multi-agency pitch. The account size is estimated at Rs 15-16 crore. Even as the officials are tight-lipped on the development, senior officials close to the situation have confirmed the move to exchange4media.
Meanwhile, the company is in the process of deciding on its media agency.
The agencies have been empanelled as per the ATL and BTL activities. The insurance venture is expected to be officially launched in December 2008. The newly-formed insurance company will have 10 different products under its umbrella, which will be then divided amongst the empanelled agencies handling its creative business. An official close to the development has informed that the first strike of communication would be done by Rediffusion Y&R.
It may be noted that O&M and Rediffusion Y&R handle the creative duties for Bank of India, while the media mandate for Union Bank rests with Mudra.
The new company will focus mainly on bancassurance for distributing its products. Bank of India has a 51 per cent stake in the new company, while Dai-ichi and Union Bank hold 26 per cent and 23 per cent stake, respectively.
As per media reports, the operations would begin with a capital base of Rs 250 crore, and based on the solvency requirements, it would be hiked to around Rs 450-500 crore in the next five years.
Star Union Dai-ichi Life Insurance Company Ltd is also committed to providing insurance to rural and weaker/ social sectors. Both the domestic partners are in the process of implementing Government of India’s initiative of financial inclusion and their pan-India network of branches, giving the company a natural edge in catering to these sectors effectively.