cbm bancassurance
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mcom part 1 projectTRANSCRIPT
S.K SOMAIYA COLLEGE OF ARTS, SCIENCE & COMMERCE
VIDYAVIHAR (EAST), MUMBAI - 400077
PROJECT ON:
“STUDY OF BANCASSURANCE WITH REFERENCE TO SBI BANK”
MASTERS OF COMMERCE
(BANKING & FINANCE)
PART 1 (SEM)
(2015-2016)
Submitted:
In Partial Fulfillment of the requirements
For the Award of the Degree of
MASTERS OF COMMERCE
(BANKING & FINANCE)
BY
RIDDHI J SANGOI
1
ROLL NO :45
DECLARATION
I RIDDHI J SANGOI student of class in Mcom (BANKING & FINANCE)
PART 1 (SEM-1), ROLL NO 45, academic year 2015-2016 Studying at S.K.
SOMAIYA COLLEGE OF ARTS, SCIENCE AND COMMERCE, hereby
declare that the work done on the project Entitled “STUDY OF
BANCASSURANCE WITH REFERENCE TO SBI BANK” is true and
original and any Reference used in this project is duly acknowledged.
DATE:
PLACE: MUMBAI -----------------------------
SIGNATURE OF STUDENT
(RIDDHI J SANGOI)
2
CERTIFICATE
This is to certify that MISS RIDDHI J SANGOI, studying in Mcom (BANKING
& FINANCE) PART 1 (SEM-1), ROLL NO. 45, academic year 2015-2016 at
S.K.SOMAIYA COLLEGE OF ARTS, SCIENCE & COMMERCE has
completed the project on ‘STUDY OF BANCASSURANCE WITH
REFERENCE TO SBI BANK’ under the guidance of Proff. GIRISH
The information submitted herein is true and original to the best of my
knowledge.
____________________ ___________________
Proff. GIRISH DR. SANGEETA KOHLI
[PROJECT GUIDE] [PRINCIPAL]
____________________ ___________________
EXTERNAL EXAMINER
[CO-ORDINATOR]
3
DECLARATION BY GUIDE
I, the undersigned Prof. GIRISH has guided MISS RIDDHI J SANGOI, ROLL
NO.45 for his project. He has completed the project on ‘STUDY OF
BANCASSURANCE WITH REFERENCE TO SBI BANK ‘ successfully.
I, hereby declare that information provided in this project is true as per the
best of my knowledge.
(Prof. ________)
Project Guide
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ACKNOWLEDGEMENT
It gives me immense pleasure to present a project on ‘STUDY OF BANCASSURANCE
WITH REFERENCE TO SBI BANK’ As a Mcom student it is a great honour to
undergo a project work at an graduate level and I would like to thank the University of Mumbai
for giving me such a golden opportunity.
I am eternally grateful to almighty god for giving me the spirit to put in my best effort towards
my project. I owe my sincere gratitude to DR. SANGEETA KOHLI, the principal of our
college. I am also thankful to my project guide GIRISH for her valuable guidance and for
providing an insight to the subject.
I am also obliged to the library staff of S.K..Somaiya College for the numerous books made me
available for the handy reference.
Although, I have taken every care to check mistake and misprint yet it is difficult to claim
perfection. Any error, omission and suggestion brought to my notice, will be thankfully
acknowledged by me.
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INDEX
SR NO CHAPTER NAME PAGE NO
1OVERVIEW OF BANKING & INSURANCE IN INDIA 7
1.1 INTRODUCTION TO BANKING 8 1.2 OVERVIEW OF INSURANCE 11
2 ABOUT BANCASSURANCE 15 2.1 WHAT IS BANCASSURANCE 16 2.2 BIRTH OF BANCASSURANCE IN INDIA 17
2.3 WAYS OF ENETERING INTO BANCASSURANCE 19
2.4 BANCASSURANCE MODELS 21
3REGULATIONS FOR BANCASSURANCE IN INDIA 24
3.1 RBI GUIDELINES 25
4 BENEFITS OF BANCASSURANCE 27 4.1 BENEFITS OF BANCASSURANCE 28 4.2 BENEFITS TO BANKS 28 4.3 BENEFITS TO INSURANCE COMPANY 29 4.4 BENEFITS TO CUSTOMERS 30
5 SBI LIFE INSURANCE PROFILE & PRODUCTS 31 5.1 SBI LIFE INSURANCE PROFILE 32 5.2 SBI COMPANY PERSPESTIVE 32 5.3 PRODUCTS OFFERED BY SBI 34
6 VARIOUS TRENDS & CHALLENGES 38 6.1 TRENDS 39 6.2 CHALLENGES 39
7SWOT ANALYSIS & SOME TIE UPS OF BANCASSURANCE 41
7.1 SWOT ANALYSIS OF BANCASSURANCE 42 7.2 SOME IMPORTANT TIE UPS IN INDIA 44 CONCLUSION 45 BIBLOGRAPHY 46
6
CHAPTER 1
OVERVIEW OF BANKING & INSURANCE
IN INDIA.
7
1.1 INTRODUCTION TO BANKING:- Banking has become a part and parcel of our day-to-day life. Today, banks offer an easy
access to a common man. They carryout variety of functions apart from their main functions of
accepting deposits and lending. Banking is a service industry. Banks provide financial services to
the people, business and industries. Merchant banking, money transfer, credit cards, ATM's are
some of theimportant financial services provided by the modern banks.
Indian banking system, over the years has gone through various phrases after
establishment of RBI in 1935 according to RBI Act,1934 , during British rule, to function as
Central Bank of the country. Earlier Central Bank's functions were being looked after by the
Imperial Bank of India.
The development of 'Banking’ is evolutionary in nature. There is no single answer to the
question of what is Banking. Because a bank performs a multitude of functions and services
which cannot be comprehended into a single definition. For a common man, a bank is a storehouse
of money, for a businessman it is an institution of finance and for a worker it may be a depository
for his saving.
It may be explained in brief as "Banking is what a bank does". But it is not clear enough to
understand the subject in full The Oxford dictionary defines a bank as "an establishment for the
custody of money which it pays out on a customer's order'. But this definition is also not enough,
because it considers the deposit lending andrepayment functions only. The meaning of a bank can
be understood only by its functions just as a tree is known by its fruits, As any othersubjects, it has its
own origin, growth and development.
Evolution:-
It is interesting to trace the origin of the word ‘Bank’ in the modern sense to the German
word "Banck" which means, heap or mound or joint stock fund. From this, the Italian word
"Banco" meaning heap of money was coined.
Some people have the opinion that the words "bank” is derived from the French words,
"bancus" or "banque" which means a "bench". Initially the bankers, the Jews in Lombardy,
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transacted their business on benches in the market place and bench resembled the banking
counter.
Development of Banking in India:-
Banking in India is indeed as old as Himalayas, but the banking functions became an
effective force only after the first decades of 20th century. To understand of the history of modem
banking in India. One has to refer to the English "Agency Houses" established by the East India
Company, These Agency Houses, were basically trading firms and carrying on banking business
as part of their main business. Because of this dual functions and lack of their own capital they
failed and vanished from the scene during the third decade of 18th century.
Meaning and Definition of banks:- A bank is an institution which deals in money and credit.Thus, bank is an intermediary
which handles other people's money both for their advantage and to its own profit. But banks are
not merely a trader in money but also an important manufacturer of money. In other words, a
bank is a factory of credit.
According to 5(b) defines banking as "accepting for the purpose of lending or
investment of deposits of money from the public, repayable on demand or otherwise and
withdrawals by cheque, draft and order or otherwise". Section 5 (1) (c) defines banking company
as "Any company which transacts the business of banking in India".
The Oxford Dictionary defines a bank as "an establishment for the custody of money,
which it pays out on a customer's order".
Section 5(c) of Banking Regulation Act,1949 has been defined banking as,"One which
transacts the business of banking which means the accepting for the purpose of lending or
investment of deposits of money from the public, repayable on demand or otherwise and
withdrawable by cheque, draft, order or otherwise”.
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Features of banking:-
The following are the essential features of banking,
(1) Dealing in money :-
The banks accept deposit from the public and advance them as loans to the needy people.
The deposits may be of different type -current, fixed and savings accounts. The deposits are
accepted on various terms and conditions.
(2) Withdrawals Deposits:-
The deposits (other than fixed deposits) made by the public can be withdrawals by
cheques, draft or otherwise i.e. the bank issue and pays cheques. The deposits are usually
withdrawal on demand,
(3) Dealing with credit:-
The banks are the institutions that can create credit i.e. creation of additional money for
lending. Thus, creation of credit is the unique feature of Banking
(4) Commercial in Nature:-
Since all the banking functions are carried on with the aim of making profit, it is regarded
as a commercial institution.
(5) Nature of an agent:-
Besides the basic functions of accepting deposits and lending money as loans, banks
possess the character of an agent because of its various agency services.
Main Functions of Banks :- The following are the main functions of banks…
I. Accepting Deposits:-
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Tapping the savings of the public by means of deposits in one of the major functions of a
bank. When a bank accepts deposits, it is said to borrow money, as a borrower, the bank has to
safeguard its position. Therefore before opening an account a bank has to observe certain general
precautions. Every deposit is the property of the bank. The bank is responsible for the safety of
the deposit. A bank may its discretion in allowing or not allowing a person to deposit and it
cannot be questioned.
II. Lending Money:
Banking is essentially a business dealing with money. A bank has to invest funds in
different was to earn income. The bulk of income is derived from lending funds, Banks provide
loans and advances to traders, industrialists against the security of some assets, They also
advance loans to the people on personal security. In both the cases the banks run the risk of
default in repayment. Therefore, the banks have to follow a sound lending policy. Banks in India
have responsibility of fulfilling social obligations. Therefore, in order to protect their own
interest as well as national interest the following principles should be followed by the banks.
1.2 OVERVIEW OF INSURANCE
Introduction:-
Risk is there at every walk of life, risk also endangers life itself. In the same way
all financial deals, as well as possession of money & property goods etc are fraught with the
element of risk. For an example, money may be stolen, or goods robbed or destroyed or an
employee may misappropriate. A man may be killed in an accident or may die of a fatal disease.
The loss arising out of these risks may be quite substantial and in extreme cases, it may be so
heavy that business may be crippled. The businessman and the owners of the property discovered
that if they got together and contributed a relatively small amount to a common pool, the total
amount so contributed would be sufficient to compensate any of them for the loss arising due to
such causes.
All risks do not actually occur at all times and hence it imposable to calculate
probable chances of any particular risk materializing. It is quite that all the people do not face
risks at the same time, thus, the transfer of risk to another i.e. the insurer is in fact a pooling of
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risks. If insurance did not exist, each individual would have to bear the losses on his own.
Insurance in effect means that each one in the pool undertakes to bear a portion of the loss. Such
an agreement has proved to be advantageous to everyone as it is uncertain as to who suffer the
loss.
Insurance is a financial service for collecting the saving of the public and proving
them with risk coverage. The main function of Insurance is to provide protection against the
possible chances of generating loss. It eliminates worries and miseries of losses by destruction of
property and death. It also provides capital to the society as the funds accumulated are invested
Principles of Insurance:-An insurance contract made without due consideration to these principles is treated as
void, not enforceable by law these principles are as follows:-
Principles of Utmost Good Faith:-
One of the basic & primary principles of insurance is utmost good faith. It states that
insurance contract must be made in absolute good faith on the part of both the parties. The
insured must give to the insurer complete, true & correct information about the subject matter of
the insurance.
Material fact should not be hidden on any ground. This principle is applicable to all
types of insurance contracts. Insurance is for protection & not for profit & hence correct
information must be given to the insurance company.
Principle of Insurable Interest:-
This principle suggests that the insured must have insurable interest in the object of
insurable. A person is said to have such interest when the physical existence of the object of
insurance gives him some gain but which he is likely to lose by its non-existence.
In other words, the insured must suffer some kind of financial loss by the damage to the
subject matter of insurance. Ownership is the most important test of insurance
interest. Every individual has insurable in his own life. Insurance contracts without
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insurable interest are void, Insurable interest is not a sentimental concepts but a pecuniary
interest.
Principle of Indemnity:-
This is one important principle of insurance, This principle suggests that insurance
contract is a contract for affording protection and not for profit making. The purpose of insurance
is to secure compensation in care of loss or damage. Indemnity means security against loss, The
compensation will be paid in proportion to the loss actually occurred. This amount of
compensation in the insurance contract is limited to the amount assured or the actual loss
whichever is less. The compensation will not be more or less than the actual loss.
Principle of Subrogation:-
This principle is an extension and a corollary of the principle of indemnity. It is
applicable to all the contracts of indemnity, It is applicable to all rights and remedies which the
assured would have enjoyed regarding the said loss. When the compensation is paid for the total
loss, all the rights of the insured in respect of the subject matter of insurance are transferred to
the insurer. The assured will not realize more than the actual loss suffered.
Principle of Contribution:-
There is no restriction as to the number of times the property can be insured. But on the
occurrence of the loss can be realized from one insurer or all the insurers together, This principle
is, however, not applicable to life insurance contract.
Mitigation Loss:-
According to this principle every insured should all the necessary steps to minimize the
loss. E.g. if a trader takes out a marine policy for the goods being shipped from Goa to Mumbai
and if the storm takes place due to which there takes might be risk of ship sinking. According to
this principle, the ship can be saved by throwing away some of the goods in order to reduce the
weight on the ship.
Risk must Attach:-
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The subject matter should be exposed to risk, e.g. for goods placed in godown marine,
insurance policy cannot be taken. However, goods may be insured against fire or theft.
Causa Proxima:-
The principle of causa proxima means that when a loss has been caused by the series of
causes, the proximate or the nearest cause should be taken into consideration to determine the
liability of the insurer. The principle states that to ascertain whether the insurer is liable for the
loss or not, the proximate and not the remote cause must be looked into. For an example, a cargo
ship got a hole, due to negligence of the master and as a result sea water entered and cargo was
damaged.
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CHAPTER 2
ABOUT BANCASSURANCE
15
2.1 What is Bancassurance?
Bancassurance, i.e., banc + assurance, refers to banks selling the insurance products.
Official definition of Bancassurance: According to IRDA, ‘Bancassurance’ refers to banks
acting as corporate agents for insurers to distribute insurance products. Insurance Products
include Life or Non-Life products
Bancassurance in India is defined as those banks which are dealing in insurance products
of both life and non-life type in any forms.
The term "bancassurance" was coined in the 1980"s in France. Bancassurance is defined
as the distribution of insurance products through banks. In addition to the branches of banks, this
medium of distribution also includes new distribution systems. Such as electric banking
operation, ATM's etc. Although the term bancassurance may also be used for distribution of
banking products through insurance companies, this is sometimes termed "assurbanking" in
some countries. Bancassurance has been most successful in Europe, mainly due to the regulatory
and tax environment.
In France alone, banks conduct more than 60% of the insurance business. In the rest of
Europe, business through bancassurance amounts to 45% of the total insurance business while, in
the US where bancassurance began only a decade back, it amounts 5% of the total insurance
transactions.
Both insurers as well as bankers view the cross selling relationship involved in
bancassurance as part of a long term strategy. Accordingly, they are adapting themselves
organizationally. So, as achieve the long term bancassurance goals in the best possible manner.
In some countries, banks have either acquired or set up their own insurance product
manufacturing capacity. In some cases, insurance companies have acquired smaller banks.
Bancassurance in its simplest form is the distribution of insurance products through a
banks distribution channels. It is the provision of insurance and services through a common
distribution channel or through a common base.
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Banks with their geographical spreading penetration in terms of customer reach of all
segments, have emerged as viable sources for the distribution of insurance products, It takes
various forms in various countries depending upon the demography and economic and legislative
climate of that country. This concept gained importance in the growing global insurance industry
and its search for new channels of distribution
2.2 Birth of Bancassurance in India:
As per March 2008, the number of Insurance companies in India,
Life Insurance Companies 15 Private Insurance Companies
1 Public Insurance Company (LIC)
Non- life Insurance Companies 9 Private Insurance Companies
4 Public Insurance Company
As regarding the present size of the insurance market in India, it is stated that India accounts not
even one per cent of the global insurance market. However, studies have pointed out that
India’s insurance market is expected to grow rapidly in the next 10 years. Insurance industry in
India for fairly a longer period relied heavily on traditional agency (individual agents)
distribution network, Therefore, the zeal for discovering new channels of distribution and the
aggressive marketing strategies were totally absent and to an extent it was not felt necessary. As
the insurance sector is poised for a rapid growth, in terms of business as well as number of new
entrants’ tough competition has become inevitable. Consequently, addition of new and number
of distribution channels would become necessary.
Origin:-
The banks taking over insurance is particularly well-documented with reference to the
experience in Europe. Across Europe in countries like Spain and UK, banks started the process
of selling life insurance decades ago and customers found the concept appealing for various
reasons. Germany took the lead and it was called “ALLFINANZ”. The system of bancassurance
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was well received in Europe. France taking the lead, followed by Germany, UK, Spain etc. In
USA the practice was late to start (in 90s). It is also developing in Canada, Mexico, and
Australia. In India, the concept of Bancassurance is very new. With the liberalization and
deregulation of the insurance industry, bancassurance evolved in India around 2002.
Definition:-
Bancassurance in its simplest form is the distribution of insurance products through the banks
distribution channels. In concrete terms, bancassurance which is known as All finance constitutes
a package of financial services that can fulfill both banking and insurance needs, at the same
time. The motives behind bancassurance also vary. For banks, it is the means of product
diversification and source of additional fee income while Insurance companies see it, 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 the doorsteps.
Objectives:-Banking and insurance have more commonality in the basic nature of their business.
Banking and insurance relay on pulling on resources to protect financial security (Banking) or to
protect against adverse events (Insurance), Banking and Insurance are often complimentary, as it
the case of mortgages, that require both finance and property insurance.
In Insurance, the initial expenses because of distribution costs are high and regulatory
disclosure requirements are applying additional pressure, on the insurers to reduce the costs.
Distribution expenses being a major of initial expense, insurers are focused to think on alternate
channels of distribution and banks have a lot of common practices to integrate to achieve
economies of scale,
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2.3 WAYS OF ENTERING INTO BANCASSURANCE
There is no single way of entering into bancassurance which is “best” for every insurer and every
bank. As in all business situations, a proper strategic plan drafted according to the company’s
internal and external environmental analysis and the objectives of the organization is necessary
before any decision is taken.
There are many ways of entering into bancassurance. The main scenarios are the following:
– One party’s distribution channels gain access to the client base of the other
party. This is the simplest form of bancassurance, but can be a “missed opportunity”. If the two
parties do not work together to make the most of the deal, Then there will be at best only
minimum results and low profitability for both parties.
If, however, the bank and the insurance company enter into a distribution agreement, according
to which the bank automatically passes on to a friendly insurance company all “warm leads”
emanating from the bank’s client base, this can generate very profitable income for both partners.
The insurance company sales force, in particular usually only the most competent members of
the sales force, sells its normal products to the bank’s clients. The cooperation has to be close to
have a chance of success. For the bank the costs involved –besides those for basic training of
branch employees – are relatively low.
–A bank signs a distribution agreement with an insurance company, under which the bank will
act as their appointed representative. With proper implementation this arrangement can lead to
satisfactory results for both partners, while the financial investment required by the bank is
relatively low. The products offered by the bank can be branded.
– A bank and an insurance company agree to have cross shareholdings between them. A member
from each company might join the board of directors of the other company. The amount of
interest aroused at board level and senior management level in each organization can influence
substantially the success of a bancassurance venture, especially under distribution agreements
using multidistribution channels.
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– A joint venture: this is the creation of a new insurance company by an existing bank and an
existing insurance company.
– A bank wholly or partially acquires an insurance company. This is a major undertaking. The
bank must carefully define in detail the ideal profile of the targeted insurance company and make
sure that the added benefit it seeks will materialize.
– A bank starts from scratch by establishing a new insurance company wholly owned by the
bank. For a bank to create an insurance subsidiary from scratch is a major undertaking as it
involves a whole range of knowledge and skills which will need to be acquired. This approach
can however be very profitable for the bank, if it makes underwriting profits.
– A group owns a bank and an insurance company which agree to cooperate in a bancassurance
venture. A key ingredient of the success of the bancassurance operation here is that the group
management demonstrate strong commitment to achieving the benefit.
– The acquisition (establishment) of a bank that is wholly or partially owned by an insurance
company is also possible. In this case the main objective is usually to open the way for the
insurance company to use the bank’s retail banking branches and gain access to valuable client
information as well as to corporate clients, allowing the insurance company to tap into the
lucrative market for company pension plans. Finally, it offers the insurance company’s sales
force bank product diversification (and vice versa). This form is used in many cases as a strategy
by insurance companies in their effort not to lose their market share to bancassurers.
The best way of entering bancassurance depends on the strengths and weaknesses of the
organization and on the availability of a suitable partner if the organization decides to involve a
partner. Whatever the form of ownership, a very important factor for the success of a
bancassurance venture is the influence that one party’s management has on that of the other. An
empowered liaison between respective managements, with regular senior management contacts,
as well as sufficient authority to take operational and marketing decisions, is vital. Regular senior
management meetings are also a vital element for a successful operation. There must be a strong
commitment from the top management to achieving the aims in the business plan.
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2.4 Bancassurance Models
I. Structural Classification:
a) Referral Model:
Banks intending not to take risk could adopt ‘referral model’ wherein they merely
part with their client data base for business lead for commission. The actual transaction with the
prospective client in referral model is done by the staff of the insurance company either at the
premise of the bank or elsewhere. Referral model is nothing but a simple arrangement, wherein
the bank, while controlling access to the clients data base, parts with only the business leads to
the agents/ sales staff insurance company for a ‘referral fee’ or commission for every business
lead that was passed on. In fact a number of banks in India have already resorted to this strategy
to begin with. This model would be suitable for almost all types of banks including the RRBs
/cooperative banks and even cooperative societies both in rural and urban. There is greater scope
in the medium term for this model. For, banks to begin with resorts to this model and then move
on to the other models.
b) Corporate Agency; The other form of non-risk participatory distribution channel is that of ‘corporate agency’,
wherein the bank staff is trained to appraise and sell the products to the customers. Here the bank
as an institution acts as corporate agent for the insurance products for a fee/ commission. This
seems to be more viable and appropriate for most of the mid-sized banks in India as also the rate
of commission would be relatively higher than the referral arrangement. This, 144 RESERVE
BANK OF INDIA OCCASIONAL PAPERS however, is prone to reputational risk of the
marketing bank.
There are also practical difficulties in the form of professional knowledge about the insurance
products. Besides, resistance from staff to handle totally new service/product could not be ruled
out. This could, however, be overcome by intensive training to chosen staff packaged with
proper incentives in the banks coupled with selling of simple insurance products in the initial
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stage. This model is best suited for majority of banks including some major urban
cooperative banks because neither there is sharing of risk nor does it require huge investment in
the form of infrastructure and yet could be a good source of
income. Bajaj Allianz stated to have established
a growth of 325 per cent during April September 2004, mainly due to bancassurance strategy and
around 40% of its new premiumsbusiness (Economic Times, October 8, 2004). Interestingly,
even in a developed country like US, banks stated to have preferred tofocus on the distribution
channel akin to corporate agency ratherthan underwriting business. Several major US banks
including WellsFargo, Wachovia and BB &T built a large distribution network byacquiring
insurance brokerage business. This model ofbancassurance worked well in the US, because
consumers generally prefer to purchase policies through broker banks that offer a wide range of
products from competing insurers (Sigma, 2006).
c) Insurance as Fully Integrated Financial Service/ Joint ventures:
Apart from the above two, the fully integrated financial service involves
much more comprehensive and intricate 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. Where banks will have a counter within sell/market the insurance products as an
internal part of its rest of the activities. This includes banks having a wholly owned insurance
subsidiary With or without foreign participation. In Indian case, ICICI bank and HDFC banks in
private sector and State Bank of India in the public sector, have already taken a lead in resorting
to this type of bancassurance model and have acquired sizeable share in the insurance market,
also made a big stride within a short span of time.
II. Product-based Classification
A) Stand-alone Insurance Products: In this case bancassurance involves marketing of the insurance products
through either referral arrangement or corporate agency without mixing the insurance products
with any of the banks’ own products/ services. Insurance is sold as one more item in the menu of
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products offered to the bank’s customer, however, the products of banks and insurance will have
their respective brands too, e.g., Karur Vysya Bank Ltd selling of life insurance products of Birla
Sun Insurance or non-life insurance products of Bajaj Allianz General Insurance company.
B) Blend of Insurance with Bank Products: With the financial integration both within the country and globally,
insurance is increasingly being viewed not just as a ‘stand alone’ product but as an important
item on a menu of financial products that helps consumers to blend and create a portfolio
of financial assets, manage their financial risks and plan for their financial security and well
being (Olson 2004). This strategy aims at blending of insurance products as a ‘value addition’
while promoting its own products. Thus, banks could sell the insurance products without any
additional efforts. In most times, giving insurance cover at a nominal premium/ fee or sometimes
without explicit premium does act as an added attraction to sell the bank’s own products, e.g.,
credit card, housing loans, education loans, etc. Many banks in India, in recent years, has been
aggressively marketing credit and debit card business, whereas the cardholders get the ‘insurance
cover’ for a nominal fee or (implicitly included in the annual fee) free from explicit charges/
premium. Similarly the home loans / vehicle loans, etc., have also been packaged with the
insurance cover as an additional incentive.
III) Banks Referrals
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.
As already discussed, warm leads can provide a strong competitive advantage for a
bancassurance operation. An efficient system for managing referrals of warm leads is therefore
vital. This section describes a process for managing referrals.
23
CHAPTER 3
REGULATIONS FOR BANCASSURANCE
IN INDIA
24
3.1 RBI GUIDELINES FOR THE BANKS TO ENTER INTO
INSURANCE BUSINESS:
Following the issuance of Government of India Notification dated August 3,
2000, specifying ‘Insurance’ as a permissible form of business that could be undertaken by banks
under Section 6(1)(o) of the Banking Regulation Act, 1949, RBI issued the guidelines on
Insurance business for banks.
1. Any scheduled commercial bank would be permitted to undertake insurance business as agent
of insurance companies on fee basis, without any risk participation. The subsidiaries of banks
will also be allowed to undertake distribution of insurance product on agency basis.
2. Banks which satisfy the eligibility criteria given below will be permitted to set up a joint
venture company for undertaking insurance business with risk participation, subject to
safeguards. The maximum equity contribution such a bank can hold in the joint venture company
will normally be 50 per cent of the paidup capital of the insurance company. On a selective basis
the Reserve Bank of India may permit a higher equity contribution by a promoter bank initially,
pending divestment of equity within the prescribed period (see Note 1 below).
The eligibility criteria for joint venture participant are as under:
i. The net worth of the bank should not be less than Rs.500 crore;
ii. The CRAR of the bank should not be less than 10 per cent;
iii. The level of non-performing assets should be reasonable;
iv. The bank should have net profit for the last three consecutive years;
v. The track record of the performance of the subsidiaries, if any, of the concerned bank should
be satisfactory.
3. In cases where a foreign partner contributes 26 per cent of the equity with the approval of
Insurance Regulatory and DevelopmentAuthority/Foreign Investment Promotion Board, more
than onepublic sector bank or private sector bank may be allowed toparticipate in the equity of
the insurance joint venture. As suchparticipants will also assume insurance risk, only those banks
whichsatisfy the criteria given in paragraph 2 above, would be eligible.
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4. A subsidiary of a bank or of another bank will not normally be allowed to join the insurance
company on risk participation basis. Subsidiaries would include bank subsidiaries undertaking
merchant banking, securities, mutual fund, leasing finance, housing finance business, etc.
5. Banks which are not eligible for ‘joint venture’ participant as above, can make investments up
to 10% of the net worth of the bank or Rs.50 crore, whichever is lower, in the insurance
company for providing infrastructure and services support. Such participation shall be treated as
an investment and should be without any contingent liability for the bank.
The eligibility criteria for these banks will be as under :
i. The CRAR of the bank should not be less than 10%;
ii. The level of NPAs should be reasonable;
iii. The bank should have net profit for the last three consecutiveyears.
6. All banks entering into insurance business will be required toobtain prior approval of the
Reserve Bank. The Reserve Bank will give permission to banks on case to case basis keeping
in view all relevant factors including the position in regard to the level of non-performing assets
of the applicant bank so as to ensure that non-performing assets do not pose any future threat to
the bank in its present or the proposed line of activity, viz., insurance business. It should be
ensured that risks involved in insurance business do not get transferred to the bank and that the
banking business does not get contaminated by any risks which may arise from insurance
business. There should be ‘arms length’ relationship between the bank and the insurance outfit.
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CHAPTER 4
BENEFITS OF BANCASSURANCE
4.1 Benefits of Bancassurance
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The company is targeting around 10%of the business during its startup phase. Bancassurance
makes use of various distribution channels like salaried agents, bank employees, brokerage
firms. Direct response, Interest etc. Insurance Companies have complementary strengths. In their
natural and traditional roles Bancassurance if of great benefit to the customer. It leads to the
creation of one- stop where a customer can apply for mortgages, pensions, savings and insurance
products. The customer gains from both sides as costs get reduced. Bancassurance for the
customer is abonanza in terms of reducing charges, a high quality product and delivery at the
doorstep.
Both insurance companies and banks have certain competitive advantages.
4.2 BENEFITS TO BANKS:
Banks enjoy the following advantages over insurance companies.
1) Most banks have strong brand name. The Bank's physical presence in the public areas is an
added reassurance to the people. In an old - fashioned way, people like to see that the insurer
remains within sight, over the years.
2) Their relationship with their customer is based on trust.
3) Banks have a wide network of branches which constitute an excellent distribution channel.
4) Banks own the financial transaction history of their customer. This allows them to build
detailed profiles of every single customer using data management techniques. They can then
devise individually tailored products to meet the specific needs of each customer, SBI Life, for
example, is planning to go in for bancassurance. It has access to same 117 million Term Deposit
holders, through 14,000 branches of the State Bank of India.
5) Banks are also known for proving a complete range of services. A research study conducted
among insurers revealed that around 33% of the respondents felt that retail customers were likely
to buy multiple financial service product from Banks compared to this, less than 20% of the
respondents felt that retail customer would approach insurers or brokers for purchasing such
products. Banks like Stan Chart have consolidated its retail services under a super Mail, which
takes care of personal service finance needs like mutual funds, demat services and loans against
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shares. For the bank, offering insurance products would just be another way of extending the
relationship with the retail consumer.
4.3 BENEFITS TO INSURANCE COMPANY
Insurance Companies enjoy the following advantages over insurance
companies. The benefits to the insurers are equally convincing. The ability to tap into banks’ huge customer
bases is a major incentive. The extensive customer base possessed by banks is considered to be
ideal for the distribution of mass-market products. On the other hand, insurers can make use of
the wide reach of bank customers to categorise potential clients in detail according to their needs
and values. With increasing sophistication on bancassurance operations, some insurers can focus
on the high-net-worth segment, which offers greater potential for wealth management business.
Apart from the ability to tap into new customers groups, escaping from the high
cost of captive agents is another reason prompting insurers to look into alternative channels. In
some cases, teaming up with a strong bank can help to fund new business development and
boster public confidence in the insurer.
In a nutshell, insurers are attracted to bancassurance because they can:
- Tap into a huge customer base of banks;
- Reduce their reliance on traditional agents by making use of the various channels owned by
banks;
- Share services with banks;
- Develop new financial products more efficiently in collaboration with their bank partners;
- Establish market presence rapidly without the need to build up a network of agents;
- Obtain additional capital from banks to improve their solvency and expand business.
There are different organizational structures under which banks can work together with insurers,
including distribution agreements, joint ventures ore some integrated operations. It is then only
logical to presume that different motivations will drive the choice of different organizational
models
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4.4 BENEFITS TO CUSTOMERS
Unlike with banks and insurers, where benefits of bancassurance will have to be weighted
against business risk, the positive impacts on consumers are unequivocal. Part of the lowering of
distribution costs will be passed on to clients in the form of lower premium rates. In addition, it
is likely that new products will be developed to better suit client needs, which otherwise may not
be available if banks and insurers worked independently. Examples are overdraft insurance,
depositors’ insurance and other insurance covers sold in conjunction with existing bank services.
The convenience offered by bancassurance should also increase customer satisfaction, for
instance, when it is possible to pay premium as well as to withdraw and repay
cash loans backed by life insurance policies through bank’s ATM s. Just as important, is more
than often a strategic step of financial service providers to shift from being product-oriented and
to focus on distribution and customer relations.
Regulators
Bancassurance poses major challenges to regulators. The ability of financial institutions to
diversify into others sectors should help to lower the level of latent systemic risk. Banks will
benefit from lower income volatility while insurers could potentially obtain additional capital to
bolster their solvency levels.
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CHAPTER 5
SBI LIFE INSURANCE PROFILE &
PRODUCTS
5.1 STATE BANK OF INDIA LIFE INSURANCE PROFILE
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SBI Life Insurance is a joint venture between theState Bank of IndiaandCardif SAof France. SBI
Life Insurance is registered with anauthorized capital of Rs 1000 crore and a paid up capital of
Rs 500crores. SBI owns 74% of the total capital and Cardif the remaining 26%.
State Bank of India enjoys the largest banking franchise in India.Along with its 7
Associate Banks, SBI Group has the unrivalled strengthof over 14,500 branches across the
country, arguably the largest in theworld. Cardif is a wholly owned subsidiary of BNP Paribas,
which is theEuro Zone’s leading Bank. BNP Paribas is one of the oldest foreign bankswith a
presence in India dating back to 1860. Cardif is ranked 2ndworldwide in creditor’s insurance
offering protection to over 35 million policyholders and net income in excess of Euro 1 billion.
Cardif has also been a pioneer in the art of selling insurance products throughcommercial banks
in France and in 35 more countries.
SBI Life Insurance’s mission is to emerge as the leading companyoffering a
comprehensive range of Life Insurance and pension products atcompetitive prices, ensuring high
standards of customer service andworld class operating efficiency.SBI Life has a unique multi-
distributionmodel encompassing Bancassurance, Agency and Group Corporate.
SBI Life extensively leverages the SBI Group as a platform for cross-selling
insurance products along with its numerous banking product packages such as housing loans and
personal loans. SBI’s access to over 100 million accounts across the country provides a vibrant
base for insurance penetration across every region and economic strata in the country ensuring
true financial inclusion.Agency Channel, comprising of the most productive force of morethan
25,000 Insurance Advisors, offers door to door insurance solutions tocustomers.
5.2 SBI Life Insurance Company (perspective)
SBI Life insurance, a joint venture between State Bank of India,the largest bank in the country
and bancassurance major Cardiff of France. SBI’s stake in the venture is 74% whereas Cardiff
has 26% share.They have launched many products so far incorporating certain featuresthat are
introduced for the first time in the country. SBI -Life is bankingon the bancassurance model on
the strength of the SBI Groups 10000 plus bank branches and its vast customer base. In addition
it is alsotapping other. banks corporate agents and the traditional agency route to penetrate the
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insurance market SBI Life is planning to introduce morenovel and user friendly products to cater
to the requirements of theconsumers in different segments.
SBI has the largest banking network in the county. The bank islooking for business
from every customer segment of the bank rural andurban segments, upper, middle and lower
income segments /groups andcorporate segment. Besides their own channels they are planning
todistribute products through other interested banking channels also. It isexpected that 2/3 rd of
the premium income in expected to come by way of bancassurance and the rest from the
traditional agency channel as wellas ties up with corporate agents (Sundaram Finance). SBI has
alsointroduced group insurance to some well managed corporate staffs.
Technology is an integral part of this operation. Cardiff provided the technology
required. The project was initiated in April 2004,and the initial roll-out was completed by August
2004.SBI Life hasimplemented an Internet-centric IT system with browser-based front-office
and back-office systems, channel management, policy productdetails, online premium calculator
and facility for group insurancecustomers to view their individual savings status on the Web.
Theorganization has the facility to pay premiums through credit cards, Net banking, standing
instructions, etc. This is fully integrated with the coresystems through industry standards such as
XML, EDI, etc.Even as it plans to scale up operations shortly, SBI LifeInsurance Company Ltd
is looking at tripling its gross premium incomein the new financial year.In 2007-08, SBI Life
earned a total premiumincome of Rs 5,622 crore, of which income from new policy sales was
Rs4,800 crore. For the current financial year, their target is to achieve a total premium income of
Rs 10,500 crore and a first year premium income of Rs 8,500 crore”. The SBI Life ranks second
in terms of market shareamong private life insurers in the country.
SBI Life Insurance Company is the first among the 14 lifeinsurance companies in the
private sector to post a net profit in 2005-06.There are life insurance players much more
aggressive than SBI and theyhave still not been able to break the record of SBI. Their success
islargely on the channel strategy and product strategy. The another aspect istheir superior
investment performance. They have consistently, over thelast two years, generated 11-12 per
cent earnings from the investments.SBI Life Insurance is uniquely placed as a pioneer to
usher bancassurance into India. The company hopes to extensively utilize theSBI Group as a
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platform for cross-selling insurance products along withits numerous banking product packages
such as housing loans, personal loans and credit cards. SBI’s access to over 100 million accounts
providesa vibrant base to build insurance selling across every regionandeconomic strata in the
country
5.3 Products Offered by SBI
Individual Products:
A)Unit Linked products:
1)SBI Life - Horizon II :
SBI Life-Horizon II is a unique, non participating UnitLinked Insurance Plan in Indian Insurance
Industry, where you need to bea financial market expert. This plan offers the flexibility of Unit
LinkedPlan along with Automatic Asset Allocation which provides relativelyhigher returns on
your money where as increasing death benefits provide higher security to your family
2)SBI Life - Unit Plus II :
This is a non participating individual unit linked product. It provides unmatched flexibility to
match the changingrequirements. It provides choice of 5 investments funds in a single policy
3)SBI life- unit plus child plan:
SBI LIFE understand you better and hence have developedSBI Life - Unit Plus Child Plan to suit
you and your needs best. ThisPlan is meant for parents in the age group of 18-57 having a child
between the age group of 0-15 years.
B. Pension Products;
SBI Life - Horizon II Pension:
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A unique Unit Linked Pension Plan that will enable thecustomers to build a kitty good enough to enable them to spend a peaceful and financially sound, retired life.SBI Life - Horizon IIPension is a safe and hassle free way to get high returns. It comeswith the unique feature of Automatic Asset Allocation by means of which you truly, don’t need to be an expert to grow your money.
1) SBI Life - Unit Plus II Pension:
SBI Life understands the basic needs for pension plan andgive the customers financial strength to
maintain the life style evenafter the retirement.
This is a unit linked pension plan wherein the policyholder chooses an investment period from 5
to 52 years for avesting age between 50 to 70 years. They can choose to pay either single
premium or pay regular premium for the entire policy term.Their contributions are invested into
4 fund options as per their choice.
2)SBI Life - Lifelong Pensions:
It is a pension plan wherein the policyholder gets theflexibility to meet the post retirement
financial needs. It also providestax benefits. The policyholder also has the option of withdrawing
alump sum amount up to particular limit.
2) SBI Life - Immediate Annuity:
SBI Life - Immediate Annuity Plan is introduced for Pension Policyholders. This product
provides annuity paymentsimmediately from payment of purchase price. It has been
speciallydesigned to cater to the annuity needs of existing policyholders (SBILife -
Lifelong Pensions, SBI Life - Horizon II Pension, SBI Life -Unit Plus II Pension) at the
vesting age.
C) Pure Protection Products
1)SBI Life – Swadhan;
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This is a Traditional Term Assurance Policy with guaranteedrefund of basic premium .Life cover
is provided at no cost. Tax benefitis also provided. There is also a rebate on high sum assured.
There isalso flexible benefit premium paying mode.
2)SBI Life – Shield:
It offers the customers with the life insurance cover at thelowest cost for a selected term. Tax
benefit is also provided. There isalso rebate on modes of premium payment.
3)SBI Life – Shield as a Keyman Insurance Policy:
A Keyman insurance policy is taken to protect the organizationagainst the reduction in profit
resulting from the death of theKeyman. As per IRDA circular only Pure Term Assurance
Productsmay be used as a Keyman Insurance. The SBI Life Insurance provides “SBI Life –
Shield” as a Keyman Insurance Policy.
D)Protection cum Savings Products
1) SBI Life – Sudarshan:
SBI Life - Sudarshan is an Endowment Policy designed to provide savings and protection to the
policyholder and their family.They can save regularly for the future. Thus at the end of the plan,
hewill receive a substantial amount of savings along with theaccumulated bonuses declared. At
the same time, his family will be protected for death risk for the full Sum Assured.
2)SBI Life - Scholar II;
Twin benefit of saving for the child's education and securing a bright future despite the
uncertainties of life.Option to receive theinstallments in lump sum at the due date of first
installment of Survival benefit.
E)Money back scheme products
1) SBI Life - Money Back :
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It is a Traditional Saving Plan with added advantage of lifecover and guaranteed cash inflow at
regular intervals. The plan has anumber of money back options specially suited to the
customersneeds. The cover is available at competitive premium rates.
2)SBI Life - Sanjeevan Supreme:
It is a Traditional Saving Plan which offers a life cover for the term of the customer’s choice at
the same time does not burdenhim with liability to pay premiums for the entire term and also
provides cash flows at regular intervals.
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CHAPTER 6
VARIOUS
TRENDS CHALLENGES
38
6.1 TRENDS
Though bancassurance has traditionally targeted the mass market, but bancassurers have begun
to finely segment the market, whichhas resulted in tailor-made products for each segment. Some
bancassurers are also beginning to focus exclusively ondistribution.
In some markets, face-to-face contact is preferred,which tends to favour
bancassurance development. Nevertheless, banks are starting to embrace direct marketing
andInternet banking as tools to distribute insurance products. New andemerging channels are
becoming increasingly competitive, due to the tangible cost benefits embedded in product
pricing or throughthe appeal of convenience and innovation.
Bancassurance proper is still evolving in Asia and this is still ininfancy in
India and it is too early to assess the exact position.However, a quick survey revealed that a large
number of bankscutting across public and private and including foreign banks havemade use of
the bancassurance channel in one form or the other inIndia.
Banks by and large are resorting to either ‘referral models’ or ‘Corporate
agency model’ to begin with. Banks even offer space in their own premises to accommodate
theinsurance staff for selling the insurance products or giving accessto their client’s database for
the use of the insurance companies.As number of banks in India have begun to act as
‘corporateagents’ to one or the other insurance company, it is a common sightthat banks
canvassing and marketing the insurance products acrossthe counter.
6.2 CHALLENGES
Increasing sales of non-life products, to the extent those risks areretained by the banks, require
sophisticated products and risk management. The sale of non-life products should be
weightedagainst the higher cost of servicing those policies.
1)Bank employees are traditionally low on motivation. Lack of salesculture itself is
bigger roadblock than the lack of sales skills in theemployees. Banks are generally used to only
product packagedselling and hence selling insurance products do not seem to fitnaturally in their
system.
2)Human Resource Management has experienced some difficulty dueto such alliances
in financial industry. Poaching for employees,increased work-load, additional training,
39
maintaining themotivation level are some issues that has cropped up quiteoccasionally. So,
before entering into a bancassurance alliance, justlike any merger, cultural due diligence should
be done and humanresource issues should be adequately prioritized.
3)Private sector insurance firms are finding ‘change management’ inthe public sector,
a major challenge. State-owned banks get a newchairman, often from another bank, almost every
two years,resulting in the distribution strategy undergoing a complete change.So because of this
there is distinction created between public and private sector banks.
4)The banks also have fear that at some point of time the insurance partner may end up
cross-selling banking products to their policyholders. If the insurer is selling the products by
agents aswell as banks, there is a possibility of conflict if both the banks andthe agent target the
same customers.
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CHAPTER 7
SWOT ANALYSIS & SOME TIE UPSOF BANCASSURANCE
41
7.1 Bancassurance in - A SWOT Analysis:-
Strength :
Bancassurance can be a of fire way to reach a wider customer base, provide it is made use of
sensibly. In India there is an extensive bank network established over the years. Insurance
companies will have to take advantage of the customer's longstanding trust and relationship with
banks. This is mutually beneficial situation as Banks can expand the range of their products on
offer to customers and earn more, while the insurance company profits from the exposure at the
bank branches, and the security of receiving timely payments.There are several untapped
potential waiting to be mined particularly for life insurance products in rural areas. Banks with
their network in rural areas, help to fulfill rural and social obligations as stipulated by the
Insurance Regulatory and Development Authority.
There are several reasons why bank should seriously consider bancassurance., the
most important of which is increase Return on Assets(ROA).It offers fee-based non -interest
income to the banks without involving in any amount does not require any additional
capital.
Weakness :The bancassurance calls for a paradigm shift in the behavior of the banks, which have to develop
marketing skills. Most of the banks lack adequate marketing skills to perform these additional
responsibilities. At the same time, there is a need for banks to be sensitive to customers of
preferences.
Bancassurance could turn out be an example channel as it requires huge investments in Wide
Area Network (WAN) and VastArea Network (VAN) to meet customer's needs on order to
finalize a sale. Another drawback is the inflexibility of the products that is it cannot be tailor-
made to the requirements of the customers. For bank assurance venture to success, it is extremely
essential to have in -built flexibility of the products that is it cannot tailor-made to the
42
requirements of the customers. For a bank assurance venture to succeed, it is extremely essential
to have an in-built flexibility so as to make the product attractive to the customer.
Opportunities :Banks database is enormous and they have a wide branch network. Millions of customer become
accessible to insurance companies through bank branches. This database has to be dissected
variously and various homogeneous groups are to be churned in order to position the bank
assurance products.
New private sector insurance companies are yet to become popular. They are in
existence for less than five years. In a short period, to appoint agents all over the country and
effectively follow them would be an uphill task. They are in the process of building brand equity.
Tie up with Bank will help them to boost their image and provide great opportunity for insurance
as in as Bank, In this process is bank will also benefits.
Customers have more faith in Banks and they view those Banks as more
responsible than individual agents. Moreover, agents may not be available for further services,
But customers can approach the bank at any time and paying the premium is easier with Bank
because of standing instructions.
Threats:
Even insurance and Bank that seem ideally suited for a bank assurance partnership can run into
problems during implementation. Success of a bancassurance venture requires change in
approach, thinking and work culture on the part of everybody involved.
The most common obstacles to success are manpower management, lack of sales
culture within the bank, non-involvement by managers, insufficient product promotions, failure
to integrate marketing plans, marginal database expertise, inadequate incentives, a definite threat
of resistance to change, negative attitudes towards insurance and unwieldy marketing strategy.
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7.2 Some important Tie- ups:-1) Life Insurance Corporation of India with:- Corporation Bank, Indian Overseas Bank, Centurion Bank, Satara District Central Cooperative Bank, Janata Urban Co operative Bank, Yeotmal Mahila Sahkari Bank, Vijaya Bank, Oriental Bank of Commerce.
2) Birla Sum Life Insurance Co Ltd With: The Bank of Rajasthan, Andhra Bank, Bank of Muscat, Development Credit Bank, Deutsche Bank and Catholic Syrian Bank.
3) Dabur CGU Life Insurance Company Private Ltd:- Canara Bank Lashmi Vilas Bank, American Express Bank, and ABN Amro Bank.
4) HDFC standerd Life Insurance Co. Ltd. With:- Union Bank of India.
5) ICICI Prudential Life Insurance Co Ltd. With:- Lord Krishna Bank, ICICI Bank, Bank of India, Citibank, Allahabad Bank, Federal Bank, South Indian Bank, and Punjab and Maharashtra Co-operative Bank.
6) Met Life India Co. Ltd. With:- Karnataka Bank, The Dhanalakshmi Bank and Jammu & Kashmir Bank.
7) SBI Insurance Co. Ltd. With:- State Bank of India and Associate Banks.
8) Bajaj Allianz General Insurance with:- Krur Vysya Bank and Lord Krishna Bank
9) National Insurance Co Ltd With:- City Union Bank,
10) Royal Sundaram General Insurance Company with:- Standard Chartered Bank, ABN Amro Bank, Citibank Amex and Repco Bank.
11)United India insurance Co. Ltd. With:- South Indian Bank.
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CONCLUSION The life Insurance Industry in India has been progressing at a rapid growth since
opening up of the sector. The size of country, adverse set of people combined with problems of
connectivity in rural areas, makes insurance selling in India a very difficult task. Life Insurance
Companies require good distribution strength and tremendous man power to reach out such a
huge customer base.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 customers needs there is
every reason to be optimistic that bancassurance in India will play a longinning.But the proper
implementation of bancassurance is still facing so many hurdles because of poor manpower
management, lack of callcenters, no personal contact with customers, inadequate incentives
toagents and unfullfilment of other essential requirements.
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 alternative distribution channel and will change the way insurance is
soldin India. The bridge has been reached and many are beginning to walk those cautious steps
across it. Bancassurance in India has just taken a flyingstart. It has a long way to go ………..
after all The SKY IS THE LIMIT!
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BIBLOGRAPHY
www.insuremagic.com
www.google.com
www.sbilife.com
www.indiainfoline.com
Insurance Marketing
Insurance watch.
Business world.
Business today.
Theories and Practices in Insurance.
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