Bancassurance

RAKESH S . AMIN

OMKAR A . SHINDE

AZHAR N . SHAIKH

ROGER Y . PETER

RAHUL N . TAKALE

UMESH S . DASONI

Bancassurance – History

Bancassurance – Evolution

Bancassurance – A Win Win Situation

Bancassurance – Distribution Channel

AGENDA

• Bancassurance – S.W.O.T analysis

Originated in France in 1980s

Spread rapidly across Europe

Introduced in India in 1999Opening up of insurance industry20 new companies

Bancassurance - History

Pressures on Banking Sector:

Customer retention in the face of competition

Staff retention and motivation

Universal Banking- approach to provide all financial product under one roof ; a broader relationship approach

Optimum utilisation of infrastructure and resources- maximise revenue

Bancassurance - Evolution

Pressures on Insurance Sector:

Channel diversification from traditional direct sale

Access to a high quality customer base

Achieve the geographical reach within minimum time and cost

Ensure higher probability of success in the sales process

.

• French Term

• Standardized Mass Product

• Easy to understand / easy to sell

• Sold though a bank distribution channel

But what is Bancassurance ?

Insurance + Banking= Bancassurance

A Win Win Situation

The provision of insurance and banking products and services through a common distribution channel or to a common client base.

Bank Insurance Company

Customer retention Revenue and channel diversification

Satisfaction of more financial needs under the same roof

Quality customer access

Revenue diversification Quicker geographical reach

More profitable resource utilisation

Creation of brand equity

Enriched work environment Leverage service synergies with Bank

Establish sales orientated culture

Establish a low cost acquisition channel

The Bancassurance OpportunityHouse hold Savings…

Insurance14%

Government bonds5% Bank deposits

38%

Mutual Funds1%

PF/Retirement funds14%

Shares & Debentures1%

Bajaj Allianz General Insurance Co Ltd. has tie-up with Karur Vysya Bank

The Birla Sun life Insurance Company has a tie-up with the following banks :Bank of RajasthanBank of MuscatDutch Bank Catholic Syrian Bank

ING Life Insurance ties up with Vizag co-op bank

Max New York Life Insurance has it’s Tie-up with Axis Bank

Bancassurance tie-up in India

Max New York Life Insurance and Axis Bank have signed a 10-year bancassurance relationship• Max New York Life Insurance (MNYL), the seventh- largest life insurance company in India.

• Axis Bank is the third-largest private bank in India

• To provide customized life insurance solutions to customers via the bank’s network.

LIC: The insurance company LIC of India have tie up with the following bank for Bancassurance.  They are: - 

Corporation Bank Indian Overseas Bank Centurion Bank Sahara District Central Co-operative bank Janta Urban Co-operative bankOriental Bank of Commerce

Some Other Tie-up's in India

Career Agents Special Advisers Salaried Agents Bank Employees / Platform BankingCorporate Agencies and Brokerage Firms Direct ResponseInternete-BrokerageOutside Lead Generating Techniques

Distribution channels

Strengths

• Vast untapped market

• Huge pool of skilled professionals

SWOT Analysis

Weakness

Lack of networking among bank branches  

Saving Ability of Middle Class

.

Opportunities

Data mining Banks have a huge customer database which has to be properly leveraged. Target segments should be identified and tapped.

Wide distribution networks of banks 

.

Threats

Human Resource Challenges

  Non-response from the target groups can

also pose a challenge

.

THANK YOU