Shanta Life Insurance PLC, a new venture of Shanta Holdings, recently signed a memorandum of understanding (MoU) with Dhaka Bank PLC, aiming to provide bancassurance services through the bank's distribution channel.

Through this MoU, the life insurer intends to leverage the robust banking channel of the bank to provide tailored insurance policies to the clients of the latter. This proposition will help offer more financial products to the customers of the bank.

Sheikh Mohammad Maroof, managing director and CEO of the bank, and Nafis A Ahmed, chief executive officer of the life insurer, signed the MoU at the bank's head office in Dhaka, said a press release.

Maroof said, "This partnership reflects our commitment to innovation and expanding financial inclusion across Bangladesh."

"Bancassurance is the new horizon for the insurance sector in Bangladesh. We are hoping such institutional arrangements will benefit the customers in the long run," said Nafis.

This MoU will be a starting point to build a complete framework to deliver smooth bancassurance services to customers, along with knowledge building for bank employees.

Bancassurance will allow clients of the bank to purchase insurance policies through the banking channel.

The collaboration will further strengthen the partnership between the insurer and the bank, bringing more depth into this relationship, it added.

Other high officials from both organisations were also present.