IL&FS Investsmart plans insurance broking

IL&FS Investsmart, a financial service provider, plans to market life and general insurance products in the next four months through its subsidiary IL&FS Investsmart Insurance and Risk Management Services Ltd (IIIRMSL).

"We are planning to foray in insurance brokering through our subsidiary IIIRMSL. We will tie up with some insurance companies and distribute their products,"said Vipul Shah, head-primary market and new initiatives, IL&FS Investsmart.

Last month, the company received the license for marketing insurance products from Insurance Regulatory and Development Authority (IRDA).

IIIRMSL, which was earlier engaged in the marketing and distribution of insurance products as a corporate agent of Life Insurance Corporation and Iffco-Tokyo General Insurance Company, has surrendered its corporate agency license.

The company also intends to tie up with select banks and establish product-based alliances to provide investment advisory services to the banking clients.

"At present, we are in talk with a number of small banks offering depository services but not broking services. The non-conflicting nature of the businesses between the two alliance partners will provide us better terms to get tie-ups," Shah said.

IL&FS Investsmart is launching its public issue with a price band of Rs 110 to Rs 125. The offer comprises 88 lakh equity shares and offer for sale of 26 lakh equity shares. Currently, IL&FS holds 51.34 per cent stake in IL&FS Investsmart.

Commenting on the IL&FS Investsmart's entry into insurance broking, Shah said: "Our foray into insurance broking makes sense as we already have an established network and products in our basket. We already have a vast data base of investors and corporate and access to infrastructure. Moreover, one of our subsidiaries, IL&FS Academy for Insurance and Finance Ltd will train desired personnel to work for us."

However, Shah avoided commenting on the insurance companies with whom IL&FS Investsmart may join hands.

IL&FS Investsmart deals in the areas of investment management and advisory services such as merchant banking, project syndication, equity and debt broking and distribution of financial products through network in 62 cities through 30 branches and 123 business partners.