Bancassurance

Bancassurance

1. Hey there I am banking Hello I am insurance Let’s start || Bancassurance||

2. Meaning and Definition:   Bancassurance means selling insurance product through banks. Banks and insurance company come up in a partnership wherein the bank sells insurance products to its clients. Banks earn additional revenue by selling insurance products This channel disturbtion is most popular in Europe According to IRDA, ‘Bancassurance’ refers to banks acting as corporate agents for insurers to distribute insurance product

3. Need of Bancassurance: To improve the channels through which insurance policies are sold/marketed so as to make them reach the hands of common man To widen the area of working of banking sector having a network that is spread widely in every part of the nation To improve the services of insurance by creating a competitive atmosphere among private insurance companies in the market 

4. Advantages of Bancassurance To banks:- Advantage for the insurance companies Quality customer access Increase in volume and profit Increase in customer loyalty More profitable resources utilization

5. Advantages of Bancassurance To customer:-   It helps in building a better relationship with the bank. One stop shop for all financial needs Innovative and better products range Easy to know all New insurance products by bancassurance.

6. Disadvantages of bancassurance  Compromising on data security. Conflict of interest between the other products of bank and insurance policies. Better approach and services provided by banks to customer is a hope rather than a fact. Incentives need to be given to bank employees to promote insurance product.