Bancassurance

Bancassurance is preferred by consumers because of the relationship and trust that they developed with the bank, especially the local branch. Another important aspect that can really boost this system is digitization. Embracing new technology and digitization can help in easy availability for consumers and boosting up of sales of this productBancassurance is a strategic arrangement which includes insurance services offered to the customers along with the various other financial services. In this paper we discuss about Bancassurance implementation and its stakeholders such as banks, distribution channel, insurance services, financial services, service quality. After emergence Liberalisation, Privatisation Globalisation (LPG), financial sector as a whole seen a drastic change with regard to products and services. Modern banks are providing holistic financial services and are for away from mere deposit takers and financial vendors. The continuous onus to better service and market share resulted in the banks penetrating into other modes financial services. Distribution channel plays business Insurance is one such area where it employs 10 various channels of distribution but the contribution to the success of insurance penetration by each channel is very less and few channels such as agents and bancassurance have contributed significantly on the insurance penetration. Bancassurance has a better scope compared to other channels as it enjoys competitive advantage over them.

This paper is attempting to explore the key factors of Indian Economy that are contributing a promising future for bancassurance. The paper focuses on the following factors: low life insurance penetration and density, huge population, increasing literacy rate, huge untapped rural market and wide banking network, liberalization, privatization of the young Indian insurance sector that has broken long time monopoly of public sector and brought a stiff competition among the public and private insurers. The paper is based on secondary data. The main findings of this paper are that Indian Economy provides both the regulators (RBI and IRDA) good opportunity in the form of bancassurance, but with lots of challenge. Both regulators need to have common business vision and direction towards their common objectives and challenges finally that can prove a win-win situation in such dynamic environment.

IJRAR, 2019

India has a huge population of more than two hundred million middle class income group population which amounts to a large depositor base. It has around 80,000 network of branches spread across the country. It has the highest potential to attain financial inclusion in the perview of Insurance sector through bancassurance. But the fact is there are a huge number of people who either do not possess bank accounts or they are not covered under any type of insurance schemes. The model of Bancassurance can be a greatest advantage to middle class population in India which are covered under banking or insurance. Bancassurance is beneficial to all. The insurance companies take the advantage of the assurance and faith that the banks have already earned through its customers relationship and thus enter into wide ranging partnerships so as to expand their purview. The banks also in return enjoys appreciation from the customers for providing varities of financial services under a single roof building a strong the customer relationship and as a result creating better customer loyalty and higher retention levels. The main objective of insurance company's motive to increase their level of market penetration and enhance premium turnover is achieved by using bancassurance as a tool. The customer thinks bancassurance as an extra bonus in terms of high quality product, reduced price, expertise guidance and delivery at the doorsteps. This paper is an effort to study the potential and prospect of bancassurance and to revisit the literatures to anticipate the overall effect of Bancassurance if any on the financial inclusion era in India. The study infers that there is massive scope for bancassurance concept and model of operation in Indian market and it would play a significant vital role for the growth and prosperity of financial sector of the nation.

European Journal of Business and Management, 2013

Bancassurance as a channel of selling insurance has fast gained momentum in the Indian insurance scene. The customer, who is at the receiving end of the services jointly provided by the banks and insurance companies is influenced by a number of factors while making the purchase and looks out for different parameters to judge his satisfaction levels. The present study analyses the factors affecting the buying behaviour and satisfaction level from bancassurance of 400 respondents from 4 cities of Punjab. After agents, banks are the preferred medium of buying insurance because of banks commitment, cost effectiveness, return on investment. Also, given the benefits of updated policy information and ease in premium payments and claims receiving, a majority of the customers are willing to purchase their future insurance policies through the bancassurance mode. Hence, conveying that future of bancassurance can be bright in India too if the tying up companies can channelise their efforts effectively to tap the customer's needs.