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OIB ties up with insurance firms

MUSCAT — A leading bank in Oman has joined hands with two local insurance companies to offer its 300,000-plus customers across the country a range of bank assurance products including home, car and accident insurance.

Oman International Bank (OIB) said its new tie-up with Muscat Insurance Company (MIC) and Muscat Life Assurance Company (MLAC) was part of its drive to "meet the multiple needs of our customers at very competitive prices."

The bank's 'Aman Bancassurance' products will initially be available at 10 of its selected branches, but will be extended gradually to cover its entire network of branches throughout the country.

"This is another major step in our plans to provide one-stop financial services to our customers," Rashid bin Ahmed al Salmi, OIB's Assistance General Manager, Branches, told a news conference here.

"Our customers will be served for all their personal financial needs including insurance within their existing relationship with the bank," he added.

Products on offer initially are home, car, personal accident and domestic safe insurance. Life insurance schemes will be launched later. "At the moment we are offering simple general insurance products, but we will introduce life insurance at a later stage," Salmi said.

Bancassurance is increasingly becoming popular in many countries around the world because of the convenience it offers customers to obtain access to insurance products and services at the same location.

In several European countries, it has become an integral part of traditional banking products. In India, where it is catching up fast, the growth rate per annum is estimated at more than 300 per cent. Bancassurance is a relatively new concept in the Middle East, although a rising number of banks in the GCC have in recent years introduced the facility.

"Customers want a one-stop-shop for their varied needs and they trust their bank to give them sound financial advice," explained Peter Drummond, general manager of MLAC.

"Once the non-life products have been accepted, we will launch an exclusive life insurance product to serve the needs of OIB's customers and their children," he added.

The partnership with OIB, Geoffrey Blofeld, general manager of MIC said, would provide "our mutual customers with tailor-made insurance plans which will exceed their expectations and cover them in every possible way."

The benefit for MIC, he added, was that "we get access to customers through OIB's branch network... It creates a virtual branch network for us." MLAC will provide intensive training to OIB staff dealing in bancassurance products.