Professional Documents
Culture Documents
PROJECT REPORT ON
BANCASSURANCE
SUBMITTED BY
SUBMITTED TO
UNIVERSITY OF MUMBAI
PROJECT GUIDE
Signature of Student
Place: Mumbai
Date:
ACKNOWLEDGEMENT
At this juncture, I would extend my sincere gratitude to a lot of people without
whom this informative project would have been impossible. Every work that is
appreciated is always supported by various hands. This project would just not be
complete without the valuable contribution from various people whom I have
interacted with in the course of its completion.
I would like to express my gratitude to all those who gave me the possibility
to complete this thesis. I want to thank my principle Dr. Mrs. S.V. Sant from Shri
Bhausaheb Vartak Arts; Commerce & Science College who has always been a
symbol of hope for me.
My colleagues and seniors from Shri Bhausaheb Vartak Arts, Commerce &
Science College supported me in my research work. I want to thank them for all
their help, support, interest and valuable hints.
Especially, I would like to give my special thanks to my parents for their endless
love and support which helped me to complete this work.
EXECUTIVE SUMMARY
Emerging trends and challenges in bancassurance and the factor for success
of bancassurance
This project would study and address the issues related to bancassurance,
particularly in India. Strategic considerations at macroeconomic level on
future outlook have also been discussed along with suggestions and
recommendations to sustain the growth that it has witnesses till now.
The Case Study and Analysis is done as per the information provided to me
by Mr. Rajesh Sheth Marketing Manager of Bank of India, Mr. Rakesh L.
Singh and Shivaji Chandar Panchamukh SDM (Sales Department
Managers) of HDFC Standard Life Insurance Survey analysis as well as
SWOT analysis of bancassurance.
Research & Methodology
This project consist data which are collected from various sources. Normally there
are two sources of collecting the data i.e. primary data and secondary data. In this
project I have taken both primary as well as secondary data.
PRIMARY RESEARCH
Primary Research has been done to validate the information given in the project.
This research has been extensively done via visit to a bank (BANK OF India) and
an Insurance company (HDFC Standard Life Insurance). Interview from Rajesh
Sheth, Marketing manager of Bank of India and two SDM (Sales Department
Managers) of HDFC Standard Life Insurance Mr. Rakesh L. Singh and Shivaji
Chandar Panchamukh have really proved helpful in completion of the project.
SECONDARY RESEARCH
The secondary data about the project is collected through various sources i.e.
Introduction to bancassurance
Introduction to banking
Introduction to insurance
Meaning of bancassurance
Bancassurance = insurance product + banks reach
Regulatory Framework in India
Introduction to Bancassurance
The Banking and Insurance industries have changed rapidly in the changing and
challenging economic environment throughout the world. In this competitive and
liberalized environment everyone is trying to do better than others and
consequently survival of the fittest has come into effect.
This has given rise to a new form of business wherein two big financial
institutions have come together and have integrated all their strength and efforts
and have created a new means of marketing and promoting their products and
services. On one hand it is the Banking sector which is very competitive and on the
other hand is Insurance sector which has a lot of potential for growth. When these
two join together, it gives birth to BANCASSURANCE.
The Insurance Act, 1938 was the first legislation governing all forms
of insurance to provide strict state control over insurance business. Today there are
14 general insurance companies and 14 life insurance companies operating in the
country. But today also the insurance companies are trying to capture Indian
markets as not many people are aware of it.
Banks world over have realized that offering value-added services such as
insurance, helps to meet client expectations.
Customers also want a “one-stop shop” for all their financial needs. Therefore
banks are trying to provide more services and integrate them into their business
model. Bancassurance is one such initiative. Further the risks involved in doing this
business is very low.
Banks are also trying to integrate this business into their own business. Customers
would also get this benefit as these products are offered not only by their sales
force but also by net banking and other IT enabled services like ATM etc.
Insurance companies also have a wide range of insurance products catering to a
wide range of needs. Bancassurance is beneficial for insurance companies as well
as they would be cutting costs and cross-selling apart from the wider reach of their
insurance products.
In a country like India, where the need of insurance is not felt by customers,
insurance companies should try to exploit every opportunity of selling their
insurance products which Bancassurance promises.
Regulatory Framework in India
In India, the banking and insurance sectors are regulated by two different
entities (banking by RBI and insurance by IRDA) and
bancassurance being the combinations of two sectors comes
under the purview of both the regulators. Each of the regulators
has given out detailed guidelines for banks getting into insurance
sector. The RBI requires any bank intending to undertake
insurance business to obtain its prior approval. RBI guidelines for banks entering
into insurance sector provide three options for banks. They are:
• Joint ventures will be allowed for financially strong banks wishing to
undertake insurance business with risk participation.
• Any commercial bank will be allowed to undertake insurance business as
agent of insurance companies. This will be on a fee
basis with no-risk participation. Banks are entitled to
referral fee on the basis of premium collected.
• The Monetary & Credit Policy of the RBI in
October 2002 allowed banks to undertake referral
business through their network of branches subject to certain restrictions.
The Insurance Regulatory and Development Authority (IRDA) guidelines for the
bancassurance are:
• Each bank that sells insurance must have a chief insurance executive to
handle all insurance activities.
• Banks are included within the IRDA’s Licensing of Corporate Agents
Regulation 2002. All the people involved in selling should undergo
mandatory training at an institute accredited by IRDA and pass the
examination conducted by the authority.
• Commercial banks, including cooperative banks and regional rural banks,
may become corporate agents for one insurance company.
• Banks cannot become insurance brokers.
The whole aim of the present regulatory framework is to ensure that any risks that
may arise from insurance business don’t affect banking business. In essence there
should be an “arms length” relationship between the bank and the insurance
company.
SECTION 2- Models, Channels and Advantages
Bancassurance Models
Distributional channels
Advantages of bancassurance
1. to Banking Companies
2. to Insurance Company
3. to Customers
Models of Bancassurance
Models of Bancassurance
Referral Model
Blend of Insurance,
a) Referral Model
b) Corporate Agency
Apart from the above two, the fully integrated financial service involves
much more comprehensive and complicated relationship between insurer and bank,
where the bank functions as fully universal in its operation and selling of insurance
products is just one more function within. This includes banks having wholly
owned insurance subsidiaries with or without foreign participation. The great
advantage of this strategy being that the bank could make use of its full potential to
reap the benefit of synergy and therefore the economies of scope. This may be
suitable to relatively larger banks with sound financials and has better
infrastructure. As per the extant regulation of insurance sector the foreign insurance
company could enter the Indian insurance market only in the form of joint venture,
therefore, this type of bancassurance seems to have emerged out of necessity in
India to an extent. There is great scope for further growth both in life and non-life
insurance segments as GOI is reported have been actively considering to increase
the FDI’s participation up to 49 per cent.
There is also another method called 'Bank Referral'. Here the banks do not
issue the policies; they only give the database to the insurance companies. The
companies issue the policies and pay the commission to them. That is called
referral basis. In this method also there is a win-win situation everywhere as the
banks get commission, the insurance companies get databases of the customers and
the customers get the benefits.
Distribution Channels
1. Career agents
2. Special advisers
3. Salaried agents
4. Bank employees
6. Direct response
7. Internet
8. E- Brokerage
Corporate Direct
Individual Brokers Referrals
Insurers Agents Business
agents
Banks Others
1 2 3 4 5 6 7
Private
59.71 16.87 8.92 0.83 7.06 6.61
insurers
LIC 98.37 1.25 0.32 0.06 0.00 0.00
Total 85.67 6.38 0.31 0.31 2.32 2.17
New Business (Life) Undertaken under various intermediaries (2005-2006)
Distribution Channels
Traditionally, insurance products were promoted and sold principally
through agency systems only. The reliance of insurance industry was totally on the
agents. Moreover with the monopoly of public sector insurance companies there
was very slow growth in the insurance sector because of lack of competition. The
need for innovative distribution channels was not felt because all the companies
relied only upon the agents and aggressive marketing of the products was also not
done. But with new developments in consumers’ behaviours, evolution of
technology and deregulation, new distribution channels have been developed
successfully and rapidly in recent years.
Career Agents:
Career Agents are full-time commissioned sales personnel holding an
agency contract. They are generally considered to be independent
contractors. Consequently an insurance company can exercise
control only over the activities of the agent which are specified in
the contract. Many bancassurers, however avoid this channel,
believing that agents might oversell out of their interest in
quantity and not quality. Such problems with career agents usually
arise, not due to the nature of this channel, but rather due to the
use of improperly designed remuneration and incentive packages.
Special Advisers:
Special Advisers are highly trained employees
usually belonging to the insurance partner, who
distribute insurance products to the bank's corporate
clients. The Clients mostly include affluent population
who require personalised and high quality service.
Usually Special advisors are paid on a salary basis
and they receive incentive compensation based on their sales.
Salaried Agents:
Salaried Agents are an advantage for the
bancassurers because they are under the control and
supervision of bancassurers. These agents share the
mission and objectives of the bancassurers. These are
similar to career agents, the only difference is in terms of
their remuneration is that they are paid on a salary basis
and career agents receive incentive compensation based
on their sales.
Bank Employees / Platform Banking:
Platform Bankers are bank employees who spot
the leads in the banks and gently suggest the customer to
walk over and speak with appropriate representative
within the bank. The platform banker may be a teller or
a personal loan assistant. A restriction on the
effectiveness of bank employees in generating insurance
business is that they have a limited target market, i.e.
those customers who actually visit the branch during the opening hours.
Direct Response:
In this channel no salesperson visits the
customer to induce a sale and no face-to-face contact
between consumer and seller occurs. The consumer
purchases products directly from the bancassurers by
responding to the company's advertisement, mailing or
telephone offers. This channel can be used for simple
packaged products which can be easily understood by the consumer without
explanation.
Internet:
Internet banking is already securely established as an
effective and profitable basis for conducting banking
operations. Bancassurers can feel confident that Internet
banking will also prove an efficient vehicle for cross selling of
insurance savings and protection products. Functions requiring
user input (check ordering, what-if calculations, and credit and
account applications) should be immediately added with links
to the insurer. Such an arrangement can also provide a vehicle for insurance sales,
service and leads.
E-Brokerage:
Banks can open or acquire an e-Brokerage arm
and sell insurance products from multiple insurers. The
changed legislative climate across the world should help
migration of bancassurance in this direction. The
advantage of this medium is scale of operation, strong
brands, easy distribution and excellent synergy with the
internet capabilities.
Advantages of Bancassurance
Bancassurance is a means of product diversification and a source of
additional fee income for banks. Insurance companies see Bancassurance as a tool
for increasing their market penetration and premium turnover. The customer sees
Bancassurance as a bonanza in terms of reduced price, high quality product and
delivery at doorsteps. Bancassurance if taken in right spirit and implemented
properly can be a win-win situation for all the participants viz; banks, insurers and
the customers.
Advantages to banks
(C) Banks are using different value added services life-E. Banking tele banking,
direct mail &so on they can also use all the above-mentioned facility for
Bancassurance purpose with customers & non-customers.
(E) By providing customers with both the services under one roof, they can
improve overall customer satisfaction resulting in higher customer retention
levels.
(F) Increase in return on assets by building fee income through the sale of
insurance products.
(G) Can leverage on face-to-face contacts and awareness about the financial
conditions of customers to sell insurance products.
(H) Banks can cross sell insurance products E.g.: Term insurance products with
loans.
Advantages to Insurers
(A) The Insurance Company can increase their business through the banking
distribution channels because the banks have so many customers.
(E)The insurance companies can also get access to ATM’s and other technology
being used by the banks.
(G) The product can be customized as per the needs of the customers.
Advantages to Consumers
(D) Easy access for claims, as banks is a regular visiting place for customers.
(E) Innovative and better product ranges and products designed as per the needs
of customers.
(G) Customers could also get a share in the cost savings in the form of
reduced premium rate because of economies of scope, besides getting
better financial counseling at single point.
Indian Scenario
Global Scenario
INDIAN SCENARIO
Indian Scenario
• Banks are best qualified to sell insurance products. They have a wide
distribution reach. Because of the strong ties with the customers they are in a
better position to sell insurance products to them.
• Banks can provide integrated financial services under one roof to their
customers.
• Valid reasons why banks should allow insurance salesman to sell insurance
products in their premises:
b. The bank gets an investment management fee for managing the insurer’s
investment.
c. Insurance products, like retirement and pension plans, are growth areas
for banks.
• With greater need to downsize - banks can utilize their existing surplus
manpower – reducing costs and optimum use of infrastructure.
Company % of policies
The following table compares the issues related to bancassurance in India with
Europe and Asia (general):
Europe Asia (general) India
Regulation Liberalized Ranging from Supportive
liberalized to forbidden
Mature
Market markets but High growth potential High growth
pension
growth reforms can
spur growth in
the
life insurance
sector
Bancassuranc Highly Mostly distribution Distributive
e model integrated alliances and joint
models ventures
SECTION 4- Analysis
Survey analysis
SWOT analysis
Survey analysis (questionnaire)
A survey was conducted of about 50 people who did regular banking transactions
and also had an insurance policy. These included several housewives, businessmen,
professionals, students, etc. The following analysis was done on the basis of the
survey conducted:
No 20%
Yes
Yes 80% No
Yes
34%
No
No Yes
66%
Interpretation: Among the people who were surveyed, there were only 34%
people who had taken insurance policy from their respective banks. Remaining
66% respondents didn’t opt to take a policy from their banks.
70 63%
60
50 42%
40
30 23%
18%
20
10
90 65%
80% 28% 40%
80
70
60
50
40
30
20
10
0
Interpretation: There was a mixed response from the customers. 80% said that
they took the insurance policy because of security benefits. 65% said that since,
they trusted their bank, they took the policy. There was 40% who said that the
brand image of the company also mattered. Only 28% said that savings was a
reason that encouraged them to buy insurance policy.
On Your Choice Which Mode Of Insurance Distribution
Channel Would You Prefer To Buy The Policy From?
Insurance
Companies Banks
20% 23%
Brokers
7%
Agents
50%
100
90%
90
80 70%
70
60
50 38%
40
30
20
10
0
Banks Banks
Interpretation: 90% people said that private sector banks would excel in this
because of their aggressive selling policies and they provide quality services to the
customers. 70% votes were given to foreign banks, because foreign banks have
proper management and aggressive selling strategies. The public sector banks were
given the least votes because of their lazy approach to work.
Do You Think Bancassurance Has A Good Future?
No, 5%
Yes
No
Yes, 95%
Interpretation: 95% people said that they believe that Bancassurance has a
very bright future because there is an immense potential for the insurance industry
in India. But 7% believe that because of the emergence of the new technology such
as ATM’s, Internet banking etc the banks will soon go virtual so there is not much
scope for it.
SWOT Analysis:
Banks also enjoy a wide network of branches, even in the remotest areas that
can facilitate taking up the task on a large and massive scale, simultaneously.
Banks are very well aware with the psychology of the customers because of
their interaction with the customers on regular basis. Because of this the
bankers can guess the attitude and diverse needs of the customers and could
change the face of insurance distribution to personal life insurance.
With the help of banks trained staff, its brand name and the confidence and
reliability of people on the banks, the selling of insurance products can be
done in a more proper way.
Weaknesses:
There are many differences in the way of thinking and business approaches
of bankers and the managers of insurance companies. Banks are traditionally
“demand-driven” organizations with a reactive selling philosophy. Insurance
organizations are usually “need-driven” and have an aggressive selling
philosophy.
Opportunities:
There are many people in many areas that are still unaware about the
insurance and its various products and are waiting that somebody should
come and give them the information about it.
In urban and metro areas, where the customers are willing to get many
services like lockers and safe deposit systems and other products and
services from banks, there is a good opportunity to market many property
related general insurance policies like fire insurance, burglary insurance and
medi-claim insurance etc.
Banks' database is enormous even though the goodwill may not be the same.
This database has to be dissected and various homogeneous groups are to be
churned out in order to position the Bancassurance products. With a good IT
infrastructure, this can really do wonders.
Threats:
Another possible threat may come from non-response from the targeted
customers. If many joint ventures took place between banks and insurance
companies then it may happen that the customers may not respond to such
ventures as happened in U.S.
If no strict norms are there for such ventures then many unholy ventures may
take place which may give rise to tough competition between bancassurers
resulting in lower prices and the Bancassurance venture may never break
because of such situations.
SECTION 5- Bancassurance Trends and Opportunities
TRENDS
CHALLENGES
Bancassurance: Emerging Trends & Challenges
Trends
Though bancassurance has traditionally targeted the
mass market, but bancassurers have begun to finely
segment the market, which has resulted in tailor-made
products for each segment.
Banks even offer space in their own premises to accommodate the insurance
staff for selling the insurance products or giving access to their client’s
database for the use of the insurance companies.
Challenges
If bancassurance was termed as marriage between banks and insurance, then the
probability of divorces can’t be ruled out. Critics opine that bancassurance is a
controversial idea, and it gives banks too great a control over the financial industry.
The challenge to sustain such alliances could be immensely daunting. The
difference in regulation, not only across countries but between banks and insurance
industry as well has been cited as the primary reason. The difference in trade
customs, work culture in these industries is another impediment
Sales front:
Private sector insurance firms are finding ‘change management’ in the public sector
a major challenge. State-owned banks get a new chairman, often from another
bank, almost every two years, resulting in the distribution strategy undergoing a
complete change. In the private sector, the M&A activity is one of the causes for
change.
In the past, Dena Bank, which had originally partnered Kotak Mahindra Life,
switched loyalty to the public sector Life Insurance Corporation? So did Allahabad
Bank, which had a tie-up with ICICI Prudential Life Insurance. Punjab National
Bank and Vijaya Bank have been forced to drop their bancassurance partnerships
after they chose to set up an insurance broking JV.
The other conflict that most insurers face is when they have a bank within their
own group. Half of the insurance firms in India are part of a financial group that
has a bank. They include ICICI Bank, State Bank of India, ING Vysya, HDFC,
Jammu & Kashmir Bank, and Kotak Mahindra Bank. According to Rajesh Relhan,
head of bancassurance, Aviva Life, there is a fear among banks that at some point
in future their insurance partner may end up cross-selling banking services to their
policyholders. Besides, companies that sells predominantly through agents
experience channel conflict when both agents and banks target the same customer.
Operational Challenges:
Banks will have to be prepared for possible disruptions to client relations arising
from more frequent non-life insurance claims
SECTION 6- OUTLOOK OF BANCASSURANCE
The decision
Mining database
Information Technology
Banks and insurance companies are very different in both value and
culture. In India, the selling of insurance through banks is yet to emerge as regular
activity and, therefore using traditional products and systems may not be
appropriate.
The potential to be tapped is ample and increasing the clientele base for the
insurance products will reduce the cost of distribution. Banks can leverage their
strengths to develop additional mass.
• Mining database
Banks have huge database of clients. Bank should ensure relevant and flexible
database systems.
Dealing with high net worth customers may require insurance specialists to address
complex sale issues. Bank officials need to be very clear about service standards,
policy issues, processing issues and sales and marketing supports.
• The existing bank branch network/infrastructure
Branch network should be utilized in with more ambiances for selling insurance
products. The costs of infrastructure can be defrayed over a larger products and
services.
Rather than the consumer’s needs market oriented, in rural and semi-urban areas
also, similar policies can be canvassed for sale. However, in these branches, the
bank should be proactive and innovative in suggest a proper planning for the
payment of premiums.
• Information Technology
Bank’s culture must be transformed to sell insurance and it must be ensured that
shelf space is adequately provided in a bank’s retail delivery systems. It is
important to note though, that if the bank’s culture is not compatible with selling
insurance, then specialist insurance salesman may be needed.
• The decision
The success of the banking products is the function of the increasing strength of the
service/ products plus the stages of economic
development at which society living. Similar is the
way with Bancassurance as banking product. India,
as a future economic giant in the world economy
will not lag behind in supporting Bancassurance.
Indian banks are known for their innovation and the various products and services
which surfaced, disappeared and later surfaced in a new avatar will certainly do
well for the banking system.
Future scope for Bancassurance
India has already more than 200 million middle class population coupled
with vast banking network with largest depositors base, there is greater scope for
use of bancassurance. In emerging markets, new entrants have successfully
employed bancassurance to compete with incumbent companies. Given the current
relatively low bancassurance penetration in emerging markets, bancassurance will
likely see further significant development in the coming years.
In India the bancassurance model is still in its nascent stages, but the
tremendous growth and acceptability in the last three years reflects green pasture in
future. The deregulation of the insurance sector in India has resulted in a phase
where innovative distribution channels are being explored. In this phase,
bancassurance has simply outshined other alternate channels of distribution with a
share of almost 25-30% of the premium income amongst the private players.
It has been also found out that the banks have various opportunities to cross
sell insurance products. The insurance companies also have the opportunity
to take advantage of the bank’s network and other avenues.
It is also seen that customers have a lot of trust on the banks, and because of
that trust the customers will take the insurance products from banks.
As the brand name of the banks is important so is the brand image of the
insurance companies. So the banks and the insurance companies must tie-up
with the right partners. This will help them to create a better image in the
minds of the customers.
It has also clear from the study that the private sector and the foreign banks
have better future in Bancassurance. But the public sector banks are also
trying to give them a tough competition e.g. SBI Life Insurance Co.
The insurance business can go a long way because there is a large population
who is still unaware about insurance. So the insurance companies have a
huge potential market in the years to come.
The employees of the banks who are selling insurance products must be
given proper training so that they can answer to any queries of the customers
and can provide them products according to their needs.
Banks should also provide after sales services and they should be more
aggressive in selling the insurance products.
Banks should also do the settlement of claims which will increase the trust
and reliability of the customers on the banks.
In India, since the majority of the banking sector is in public sector which
has been widely responsible for the lethargic attitude and poor quality of
customer service, it needs to rebuild the blemished image. Else, the
bancassurance would be difficult to succeed in these banks.
A formal and standard agreement between these banks and the insurance
companies should be taken up and drafted by a national regulatory body.
These agreements must have necessary clauses of revenue sharing. In case of
possible conflicts, the bank management and the management of the
insurance company should be able to resolve conflicts arising in future.
Banks and Insurance companies should apply all the skills and potential in
this area and take advantage of the same and they should improve the
products from time to time according to the needs of the customers.
SECTION 7- Case Study
Bank of India
HDFC (Standard Life Insurance)
BANCASSURANC
E
BANK OF India
The Bank entered into bancassurance tie up with ICICI Prudential Life
Insurance Co Ltd, for selling life insurance products in December2001. The
number of branches engaged in selling life insurance products was gradually
increased from 595 to 710. Various initiatives were undertaken for giving thrust to
this business, like identifying Marketing Managers exclusively for Insurance
business in high potential areas. This has resulted in increase in volume of business
and referral commission by 90% over the previous year.
The Bank has signed agreement for tie-up with National Insurance Co Ltd (NICL)
for selling their Non-life insurance products on referral basis. All branches in 47
Zones, as against 29 major Zones last year, have been authorized to undertake
referral business. 53 major branches were identified across the country where
NICL agreed to open their Extension Counters for giving thrust to insurance
business. Due focus was also given through efforts by their Zones / branches and
Marketing Managers. This has resulted in increased business and referral
commission.
• The Bank is into Bancassurance business since December 2001 and they are
into tie up to undertake insurance business of behalf of ICICI Prudential Life
Insurance Co Ltd for selling life insurance products & National Insurance Co
Ltd. for non-life insurance products.
• According to them the Bancassurance business have definitely proved to be
an advantage to the banking industry because it helps the bank in generating
additional income thereby providing them with an edge over their
competitors and improving their profit position.
• For purpose of entering into bancassurance business the bank used 2
channels:
One party’s distribution channel gained access to the client base of
other party.
Through a joint venture with ICICI Prudential Life Insurance Co Ltd
& National Insurance Co Ltd
• The reasons that made the bank take up this business include competitive
pressures, high operating cost, shift in the attitude of the people to invest into
insurance business for tax benefits, earning additional income (fee based).
• The distribution channels undertaken by the bank for distributing the
insurance products include:
Employment of salaried agents to promote and sell products.
• The Bank has also received IRDA stipulated training for insurance agents;
advisors so as to make them familiar with the insurance regulations and
product information, so that they can source the insurance plans to the right
customer.
• As far as the bank employees who are involved in the selling of insurance
products are concerned, a dedicated team of employees from Bank of India
are employed in the branch to guide them and resolve various issues.
• As the concept of bancassurance is new, the Bank in order to educate the
Bank customers and make them aware, use various techniques:
Display material.
• According to the Bank, people prefer buying insurance products from the
Bank and there are no target customers as such. There are different plans for
different target audience; which depends on the type of policy that is being
promoted & sold.
• Some of types of Non-Monetary incentives that the Bank provides to agents/
employees for doing well include:
Rewards/Recognition.
Internal competition.
The concept of Bancassurance in India is still in its nascent stage, but the
tremendous growth and the potential reflects a very bright future for bancassurance
in India. With the coming up of various products and services tailored as per the
customer’s needs there is every reason to be optimistic that bancassurance in India
will play a long inning.
I have experienced a lot during the preparation of the project. I had just a simple
idea about Bancassurance. But after a detailed research in this topic I have found
how important bancassurance can be for bankers, insurers as well as the customers.
I am contented that all my objectives have been met to its fullest.
I have also experienced that though Bancassurance is not being utilized to its
fullest but it surely has a bright future ahead. India is at the threshold of a
significant change in the way insurance is perceived in the country. Bancassurance
will definitely play a defining role as an alternative distribution channel and will
change the way insurance is sold in India.
Stage of
Polarization:
Most banks
Emergence of
have short term
Change in winners
agreements; a
Some Banks yet regulations stage of Strong
to firm up could impact realignments alignments with
partnerships current may occur banks with cross
arrangements
Insurers investments and
partnered with exclusivity.
select banks
Broking
under Corp
arrangements
Agency
The figure above shows the marriage of the two- banks and insurance companies
seems to be successful till today & their relationships will be firmed to bond
together, thus, according to me; they can make a good couple in the years to come.
The bridge has been reached and many are beginning to walk those
cautious steps across it. Bancassurance in India has just taken a flying start. It has a
long way to go ……….. After all The SKY IS THE LIMIT!
Bibliography
Webliography
www.google.com
www.rbi.org.in
www.askjeeves.com
www.wikiepedia.com
www.insuranceforum.com
Ban
k
Insurance