Bancassurance

EMERGENCE OF BANCASSURANCE IN INDIA C.S. Rao The reforms in the insurance sector stellar(a) finally to the opening of the insurance sector for private booking has brought in its wake major changes not only in the design of the products available in the foodstuff but similarly the manner in which they argon marketed. We get today a host of products coupled with a large number of intermediaries who market them. The emergence and spread of bancassurance has been one of the most significant developments in the retail pecuniary services sector in India. galore(postnominal) banking institutions and insurance companies have found bancassurance to be an attractive - and oftentimes profitable - complement to their core businesses. While less than twain per cent of total premiums ar generated through this channel, there are expectations that bancassurance will grow to register a dominant address in the fullning insurance market during this decade. World over, era both life and non-life companies seek to engage bank branches, non-life products have featured less prominently in bancassurance distribution. The major priming coat is the complementary nature of life insurance and banking products. Both are in the nature of savings accumulation, one short-term and the separate long-term.

The enormous trust that the banks command in the minds of public is an measurable reason why insurance companies seek to enter into wide ranging banking partnerships. The banks, in plication, find that the customers appreciate the provision of integrated fiscal services at the banks branches which in turn builds better customer loyalty and retention levels. The insurance companies and the banks unitedly find that their collaboration at providing a package of financial services not only benefits customers but also maximizes their profits. The primordial bancassurance distribution arrangements in India are taking off under two categories: (a) distribution alliances by way corporate mission and insurance broking relationships,... If you want to get a full essay, baseball club it on our website: Ordercustompaper.com

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