Life insurance cos may close 1,000 branches

New Delhi: Companies across sectors have been struggling to work out ways to cut costs to counter the impact of coronavirus (Covid-19). Life insurance companies for one are hoping to save on costs by reducing branch presence.

Sources in the insurance industry said that by mid FY22, about 6-8 per cent of the 11,600 branches could be cut down in a bid to save money. Branches in close proximity to large cities with internet connectivity are likely to be the first victims.

"Digital has seen a wider presence across the country, especially in metro cities. Hence the idea is to leverage this strength rather than investing into branch real estate," said the chief distribution officer at a private life insurance company.