BANCASSURANCEBANCASSURANCEIN IN

INDIAN PERSPECTIVEINDIAN PERSPECTIVE

INSURANCEINSURANCE Insurance is system by which the losses Insurance is system by which the losses

suffered by a few are spread over many, suffered by a few are spread over many, exposed to similar risks.exposed to similar risks.

Insurance is a contract between two parties, Insurance is a contract between two parties, the insurer or the insurance company, and the the insurer or the insurance company, and the insured, the person seeking the cover. insured, the person seeking the cover.

TYPES OF INSURANCETYPES OF INSURANCE

HISTORYHISTORY 1818-Oriental Life Insurance Establised in 1818-Oriental Life Insurance Establised in

INDIAINDIA 1912-Act are Established1912-Act are Established 1928-Gov. collect the information abt. both 1928-Gov. collect the information abt. both

type of insurancetype of insurance 1938-Earlier Legislation for protecting the 1938-Earlier Legislation for protecting the

objective objective 2002- IRDA are Established2002- IRDA are Established

IRDAIRDA Insurance Regulatory & Development Insurance Regulatory & Development

Authority is regulatory and development Authority is regulatory and development authority under Government of India in order authority under Government of India in order to protect the interests of the policyholders and to protect the interests of the policyholders and to regulate, promote and ensure orderly growth to regulate, promote and ensure orderly growth of the insurance industry.of the insurance industry.

BANCASSURANCEBANCASSURANCE DefinitionDefinition :It simply means selling of :It simply means selling of

insurance products by banksinsurance products by banks Banks have corporate agency with an Banks have corporate agency with an

insurance company to sell its products.insurance company to sell its products. By selling insurance policies banks earn By selling insurance policies banks earn

revenues apart from interest.revenues apart from interest.

OriginOrigin It originated in France and proved most It originated in France and proved most

successful in Europesuccessful in Europe In India from October 29,2002 banks were In India from October 29,2002 banks were

allowed to undertake referral business with allowed to undertake referral business with prior approval from IRDA & RBIprior approval from IRDA & RBI

Aviva life insurance was the first company to Aviva life insurance was the first company to introduce this concept in Indiaintroduce this concept in India

BANCASSURANCE MODELSBANCASSURANCE MODELS

MODELS

STRATEGIC ALLIANCE

FULLINTEGRATION MIXED MODEL

CHANNELS OF DISTRIBUTIONCHANNELS OF DISTRIBUTION

CORPORATEAGENTS

DIRECT SALES

BANKS

AGENTS

CHANNELSOF

DISTRIBUTION

INSURANCE COMPANIESINSURANCE COMPANIES Life Insurers : 22 companies are working in Life Insurers : 22 companies are working in

both private and public sectorsboth private and public sectors General Insurers : 21 companies are working General Insurers : 21 companies are working

in both private and public sectorsin both private and public sectors

MAJOR TIE UPSMAJOR TIE UPSINSURANCE COMPANY BANKAVIVA LIFE INSURANCE ABN AMRO BANK,AMERICAN

EXPRESS,CANARA BANK,LAKSHMI VILLAS BANK,BANK OF RAJASTHAN

BAJAJ ALLIANZ STANDARD CHARTERED BANK,SYNDICATE BANK

HDFC STANDARD LIFE UNION BANKSBI LIFE INSURANCE SBI BANKOM KOTAK MAHINDRA LIFE DENA BANKICICI PRUDENTIAL & LOMBARD ABN AMRO BANK,ICICI BANK,CENTURION

BANKUNITED INDIA INSURANCE BANK OF RAJASTHANBIRLA SUNLIFE INSURANCE J&K BANK,FEDERAL BANK, BANK OF

RAJASTHANLIC OF INDIA DENA BANK,

CENTURION BANK,CORPORATION BANK,INDIAN OVERSEAS BANK,UCO BANK,BANK OF PUNJAB,CENTRAL BANK,SOUTH INDIAN BANK

SWOT AnalysisSWOT Analysis

STRENGHTSSTRENGHTS

Vast untapped marketVast untapped market

Huge pool of skilled Huge pool of skilled professionalsprofessionals

WEAKNESSWEAKNESS

Lack of networking Lack of networking among bank branches among bank branches

Low savings rate Low savings rate

SWOT AnalysisSWOT Analysis

OpportunitiesOpportunities

Data Mining Data Mining Wide distribution Wide distribution

networknetwork Corporate customers as Corporate customers as

major potential area major potential area

Threats Threats

HR challengeHR challenge Non response from Non response from

target grouptarget group

CONCLUSIONCONCLUSION BANKS WITH THEIR HUGE DATABASE BANKS WITH THEIR HUGE DATABASE

OF CUSTOMERS AND A FINE NETWORK OF CUSTOMERS AND A FINE NETWORK OF BRANCHES CAN IN THE UPCOMING OF BRANCHES CAN IN THE UPCOMING YEARS GENERATE HUGE REVENUES YEARS GENERATE HUGE REVENUES WITH THE MARKETING EXPERTISE OF WITH THE MARKETING EXPERTISE OF THE INSURANCE COMPANIES.THE INSURANCE COMPANIES.