EXECUTIVE SUMMARY

The life insurance industry in India has been progressing at a rapid pace since opening up of the sector in 2000. The size of the country, a diverse set of people combined with problems of connectivity in rural areas, makes insurance selling in India a very difficult proposition. Life insurance companies require immense distribution strength and tremendous manpower to reach out to such a huge customer base. This distribution will undergo a sea change as various insurance companies are proposing to bring insurance products into the lives of the common man by making them available at the most basic financial point, the local bank branch, through Bancassurance. Simply put, bancassurance is the process through which insurance products are sold to customers at their local banks. With a banking network of 65,000 branches serving more than 300 million retail banking customers, insurance can be available at affordable prices to people even in remote corners of the country. The relationship is symbiotic; but there are challenges. The most common challenges to success are poor manpower management, lack of a sales culture within the bank, no involvement by the branch manager, insufficient product promotions, failure to integrate marketing plans, marginal database expertise, poor sales channel linkages, inadequate incentives, resistance to change, negative attitudes toward insurance and unwieldy marketing strategy. Even insurers and banks that seem ideally suited for a bancassurance partnership can run into problems during implementation. Before targeting the market, it is essential to do a SWOT analysis.

One more important obstacle in development of bancassurance in India has been a set of regulatory barriers. Some of these have recently been cleared with the passage of the Insurance (Amendment) Act, 2002. Looking at the west where sales through the banking network have been a roaring success, the Indian banking sector has far to go. But one thing stands obvious. If insurance in India is to succeed, it can only be through the Bancassurance channel.

INTRODUCTION TO BANCASSURANCE Bancassurance in its simplest form is the distribution of insurance products through a bank's distribution channels. In concrete terms Bancassurance, which is also known as Allfinanz -describes a package of financial services that can fulfil both banking and insurance needs at the same time. It takes various forms in various countries depending upon the demography and economic and legislative climate of that country.

Demographic

profile

of the country

decides the

kind of

products

Bancassurance shall be dealing in with, economic situation will determine the trend in terms of turnover, market share, etc., whereas legislative climate will decide the periphery within which the Bancassurance has to operate. The motives behind Bancassurance also vary. For banks it is a means of product diversification and a source of additional fee income. Insurance

companies see Bancassurance 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 doorsteps. Actually, everybody is a winner here. Bank staff and tellers, rather than an insurance salesperson, become the point of sale/point of contact for the customer. Bank staff are advised and supported by the insurance company through product information, marketing campaigns and sales training.Both the bank and insurance company share the commission. Insurance policies are processed and administered by the insurance company. The usage of the term picked up as banks and insurance companies merged and banks sought to provide insurance, especially in markets that have been liberalised recently. It is a controversial idea, andmany feel it gives banks to a greater control over the financial industry or creates too much competition with existing insurers. In some
3

countries, bank insurance is still largely prohibited, but it was recently legalized in countries such as the United States, when the GLASS STEAGALLAct was repealed after the passage of the Gramm-Leach-Bliley Act. But revenues have been modest and flat in recent years, and most insurance sales in U.S. banks are for mortgage insurance, life insurance or property insurance related to loans. But China recently allowed banks to buy insurers and vice versa, stimulating the bancassurance product and some major global insurers in China have seen the bancassurance product greatly expand sales to individuals across several product lines. Private Bancassurance is a wealth management process pioneered by Lombard International Assurance and now used globally. The concept combines private banking and investment management services with the sophisticated use of life assurance as a financial planning structure to achieve fiscal deposits.

INTRODUCTION TO INSURANCE Insurance may be defined as: It is a contract between two parties where by one party undertakes to compensate another party for the loss arising due to an uncertain events for which another party agrees to pay a certain amount regularly. Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. In some sense we can say that insurance appears simultaneously with the appearance of human society. We know of two types of economies in human societies: natural or non-monetary economies (using barter and trade with no centralized nor standardized set of financial instruments) and more modern monetary economies (with markets, currency, financial instruments and so on). The former is more primitive and the insurance in such economies entails agreements of mutual aid. If one family's house is destroyed the neighbors are
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committed to help rebuild. Granaries housed another primitive form of insurance to indemnify against famines. Often informal or formally intrinsic to local religious customs, this type of insurance has survived to the present day in some countries where a modern money economy with its financial instruments is not widespread. In India, insurance has a deep-rooted history. Insurance in India has evolved over time heavily drawing from other countries, England in particular. The insurance sector in India has come as a full circle from being an open competitive market to nationalization and back to a liberalized market again. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. The Insurance Act, 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business. Today there are 14 general insurance companies and 14 life insurance companies operating in the country. But today also the insurance companies are trying to capture Indian markets as not many people are aware of it. The insurance sector is a colossal one and is growing at a speedy rate of 1520%. Together with banking services, insurance services add about 7% to the countrys GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

COMMON TYPES OF INSURANCE

1. LIFE INSURANCE The main purpose of life insurance is to replace the financial contribution made by a family member, when he/she is gone. When looking for information on insurance, you will find that life insurance policies are of various kinds- some provide replacement of the policyholders income, some pay for the estate taxes, while some take care of the burial costs. Losing you can be devastating for your family, by opting for Life insurance you can at least provide for their financial needs even when you are gone. This kind of insurance is even more important when you are married and have kids. Your life insurance should at least cover basic funeral expenses and provide a cushion for your family, while ideally it should provide consistent income for your family to fill in the income gap that is created when you are gone. 2. HEALTH INSURANCE While no one can guarantee you good health, health insurance at least guarantees to take care of your medical expenses when you fall sick or meet with an accident or face any other health-related emergency. Needless to say this is one of the most important insurance covers you must have, as without it you might have to bear all medical costs on your own, which can be financially taxing. Most employers provide health insurance benefits to their employees, so you can check with your company about providing you with health insurance cover as this are generally more affordable.

3. PROPERTY OR HOMEOWNERS INSURANCE The purpose of homeowners insurance is to provide insurance cover for your home and property in case of any damage or natural disasters. Property insurance is mandatory when you have a mortgage. If you take a loan for buying a house, the bank will ask you to get the asset insured. However if you rent a home, you should look for informationon insurancepolicies for renters, which provides coverage for all your belongings inside the house, in the event of a burglary or fire or natural disaster.

4. AUTO INSURANCE Just like your house, your automobiles need to be insured too. In many states, having basic auto insurance is mandatory. In addition to paying for damage repair and part replacements, auto insurance also covers bodily injuries, medical treatment costs and other expenses for you and your passengers during an accident. Auto insurance is basically taken for two purposes: to insure against liability you have to others in case of an accident and to insure against damage that others do to you or your car. CLAIMS Claims and loss handling is the materialized utility of insurance; it is the actual "product" paid for. Claims may be filed by insureds directly with the, insurer or through brokers or agents. The insurer may require that the claim be filed on its own proprietary forms, or may accept claims on a standard industry form, such as those produced by ACORD. Insurance company claims departments employ
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a large number of claims adjusters supported by a staff of records management and data entry clerks. Incoming claims are classified based on severity and are assigned to adjusters whose settlement authority varies with their knowledge and experience. The adjuster undertakes an investigation of each claim, usually in close cooperation with the insured, determines if coverage is available under the terms of the insurance contract, and if so, the reasonable monetary value of the claim, and authorizes payment. The policyholder may hire their own public adjuster to negotiate the settlement with the insurance company on their behalf. For policies that are complicated, where claims may be complex, the insured may take out a separate insurance policy add on, called loss recovery insurance, which covers the cost of a public adjuster in the case of a claim. Adjusting liability insurance claims is particularly difficult because there is a third party involved, the plaintiff, who is under no contractual obligation to cooperate with the insurer and may in fact regard the insurer as a deep pocket. The adjuster must obtain legal counsel for the insured (either inside "house" counsel or outside "panel" counsel), monitor litigation that may take years to complete, and appear in person or over the telephone with settlement authority at a mandatory settlement conference when requested by the judge. If a claims adjuster suspects under-insurance, the condition of average may come into play to limit the insurance company's exposure. In managing the claims handling function, insurers seek to balance the elements of customer satisfaction, administrative handling expenses, and claims overpayment leakages. As part of this balancing act, fraudulent insurance practices are a major business risk that must be managed and overcome. Disputes between insurers and insured over the validity of claims or claims handling practices occasionally escalate into litigation
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BANCASSURANCE = INSURERS PRODUCT + BANKS REACH To put in simple words, bancassurance is the provision of insurance banking products and services through the distribution channel of a bank or to a common client base. The usage of the word started picking up when the financial markets witnessed mergers and alliances between the two booming segments Banking and Insurance. According to a recent study, bancassurance is on the rise, particularly in emerging markets. Worldwide, insurers have been successfully leveraging bancassurance to gain a foothold in markets with low insurance penetration and a limited variety of distribution channels. Banks world over have realized that offering value-added services such as insurance, helps to meet client expectations & also Competition in the Personal Financial Services area is getting `hot in India. Banks seek to retain customer loyalty by offering them a vastly expanded and more sophisticated range of products. Customers also want a one-stop shop for all their financial needs. Therefore banks are trying to provide more services and integrate them into their business model. Bancassurance is one such initiative. Further the risks involved in doing this business is very low. Banks are also trying to integrate this business into their own business. Customers would also get this benefit as these products are offered not only by their sales force but also by net banking and other IT enabled services like ATM etc. Insurance companies also have a wide range of insurance products catering to a wide range of needs. Bancassurance is beneficial for insurance companies
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as well as they would be cutting costs and cross-selling apart from the wider reach of their insurance products. In a country like India, the need of insurance is not felt by customers. REGULATORY FRAMEWORK IN INDIA In India, the banking and insurance sectors are regulated by two different entities (banking by RBI and insurance by IRDA) and bancassurance being the combinations of two sectors comes under the purview of both the regulators. Each of the regulators has given out detailed guidelines for banks getting into insurance sector. The RBI requires any bank intending to undertake insurance business to obtain its prior approval RBI guidelines for banks entering into insurance sector provide three options for banks. They are:

Joint ventures will be allowed for financially strong banks wishing to undertake insurance business with risk participation. Any commercial bank will be allowed to undertake insurance business as agent of insurance companies. This will be on a fee basis with no-risk participation. Banks are entitled to referral fee on the basis of premium collected. The Monetary & Credit Policy of the RBI in October 2002 allowed banks to undertake referral business through their network of branches subject to certain restrictions. The Insurance Regulatory and Development Authority (IRDA) guidelines for the bancassurance are: Each bank that sells insurance must have a chief insurance executive to handle all insurance activities. Banks are included within the IRDAs Licensing of Corporate Agents Regulation 2002. All the people involved in selling should undergo
11

mandatory training at an institute accredited by IRDA and pass the examination conducted by the authority. Commercial banks, including cooperative banks and regional rural banks, may become corporate agents for one insurance company. Banks cannot become insurance brokers.

The whole aim of the present regulatory framework is to ensure that any risks that may arise from insurance business dont affect banking business. In essence there should be an arm length relationship between the bank and the insurance company.

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WHY SHOULD BANKS ENTER INSURANCE?

There

are

several

reasons

why

banks

should

seriously

consider

Bancassurance, the most important of which is increased return on assets (ROA). The following are the other reasons One of the best ways to increase ROA, assuming a constant asset base, is through fee income. Banks that build fee income can cover more of

their operating expenses, and one way to build fee income is through the sale of insurance products.

Banks that effectively cross-sell financial products can leverage their distribution and processing capabilities for profitable operating expense ratios.

By leveraging their strengths and finding ways to overcome their weaknesses, banks could change the face of insurance distribution. Sale of personal line insurance products through banks meets an important set of consumer needs.

Most large retail banks engender a great deal of trust in broad segments of consumers, which they can leverage in selling them personal line insurance products. In addition, a banks branch network allows

13

the face to face contact that is so important in the sale of personal insurance.

Another advantage banks have over traditional insurance distributors is the lower cost per sales lead made possible by their sizable, loyal customer base. Banks also enjoy significant brand awareness within their geographic regions, again providing for a lower per-lead cost when advertising through print, radio and/or television. Banks that make the most of these advantages are able to penetrate their customer base and markets for above-average market share. Other bank strengths are their marketing and processing capabilities. Banks have

extensive experience in marketing to both existing customers (for retention and cross selling) and non- customers (for acquisition and awareness).

They also have access to multiple communications channels, such as statement proficiency inserts, direct in using mail, ATMs, telemarketing, in etc. Banks'

technology

has resulted

improvements in

transaction processing and customer service.

By successfully mining their customer databases, leveraging their reputation and 'distribution systems (branch, phone, and mail) to make appointments, and utilizing 'sales techniques and products tailored to the middle market, European banks have more than doubled the conversion rates of insurance leads into
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sales

and

have

increased

sales

productivity

to a

ratio which

is

more

than

enough

to

make

Bancassurance a highly profitable proposition.

Benefits of Bancassurance

1. To Banks 2. To Insurance companies 3. To Customers To Banks

From the banks point of view:

(A)By selling the insurance product by their own channel the banker can increase their income.

(B) Banks have face-to-face contract with their customers. They can directly ask them to take a policy. And the banks need not to go any where for customers. (C) The Bankers have extensive experience in marketing. They can
15

easily attract customers & non-customers because the customer & non-customers also bank on banks

(D) Banks are using different value added services life-E. Banking tele banking, direct mail & so on they can also use all the abovementioned facility for Bankassurance purpose with customers & noncustomers.

(E) Productivity of the employees increases.

(F) By providing customers with both the services under one roof, they can improve overall customer satisfaction resulting in higher customer retention levels.

(G) Increase in return on assets by building fee income through the sale of insurance products.

(H) Can leverage on face-to-face contacts and awareness about the financial conditions of customers to sell insurance products.

(I) Banks can cross sell insurance products E.g.: Term insurance products with loans.

To Insurers

From the Insurer Point of view:

(A) The Insurance Company can increase their business through the
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banking distribution channels because the banks have so many customers.

(B) By cutting cost Insurers can serve better to customers in terms lower premium rate and better risk coverage through product diversification.

(C)Insurers can exploit the banks' wide network of branches for distribution of products. The penetration of banks' branches into the rural areas can be utilized to sell products in those areas.

(D)Customer database like customers' financial standing, spending habits, investment and purchase capability can be used to customize products and sell accordingly.

(E)Since banks have already established relationship with customers, conversion ratio of leads to sales is likely to be high. Further service aspect can also be tackled easily. (F)The insurance companies can also get access to ATMs and other technology being used by the banks.

(G)The selling can be structured properly by selling insurance products through banks.

(H) The product can be customized as per the needs of the customers.

To Customers
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From the customers' point of view :

(A) Product innovation and distribution activities are directed towards the satisfaction of needs of the customer.

(B) Bancassurance model assists customers in terms of reduction price, diversified product quality in time and at their doorstep service by banks.

(C)Comprehensive financial advisory services under one roof. i.e., insurance services along with other financial services such as banking, mutual funds, personal loans etc.

(D) Easy access for claims, as banks are a regular visiting place for customers.

(E) Innovative and better product ranges and products designed as per the needs of customers.

(F)Any new insurance product routed through the bancassurance Channel would be well received by customers.

(G) Customers could also get a share in the cost savings in the form of reduced premium rate because of economies of scope, besides getting better financial counseling at single point.

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Utilities of Bancassurance

For Banks : As a source of fee income - Banks traditional sources of fee income have been the fixed charges levied on loans and advances, credit cards, merchant fee onpoint of sale transactions for debit and credit cards, letter of credits and other operations. This kind of revenue stream has been more or less steady over a period of time and growth has been fairly predictable. However shrinking interest rate, growing competition and increased horizontal mobility of customers have forced bankers to look elsewhere to compensate for the declining profit margins and Bancassurance has come in handy for them. Fee income from the distribution of insurance products has opened new horizons for the banks and they seem to love it. From the banks point of view, opportunities and possibilities to earn fee income via Bancassurance route are endless. A typical commercial bank has the potential of maximizing fee income from Bancassurance up to 50% of their total fee income from all sources combined. Fee Income from Bancassurance also reduces the overallcustomer acquisition cost from the banks point of view. At the end of the day, it is easy money for the banks as there are no risks and only gains. Product Diversification- In terms of products, there are endless opportunities forthe banks. Simple term life insurance, endowment policies, annuities,education plans, depositors insurance and credit shield are the policies conventionally sold through the Bancassurance channels. Medical insurance, car insurance, home and contents insurance and travel
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insurance are also the products which are being distributed by the banks. However, quite a lot of innovations have taken place in the insurance market recently to provide more and more Bancassurance-centric products to satisfy the increasing appetite of the banks for such products. Insurers who are generally accused of being inflexible in the pricing and structuring of the products have been responding too well to the challenges (say opportunities) thrown open by the spread of Bancassurance. They are ready to innovate and experiment and have set up specialized Bancassurance units within their fold.

Building close relations with the customers- Increased competition also makes it difficult for banks toretain their customers. Banassurance comes as a help in this directionalso. Providing multiple services at one place to the customers means enhanced customer satisfaction. For example, through bancassurance a customer gets home loans along with insurance at one single place as a combined product. Another important advantage that bancassurance brings about in banks is development of sales culture in their employees. Also, banking in India is mainly done in the 'brick and mortar' model, which means that most of the customers still walk into the bank branches. This enables the bank staff to have a personal contact with their customers. In a typical Bancassurance model, the consumer will have access to a wider product mix - a rather comprehensive financial services package, encompassing banking and insurance products.

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For Insurance Companies Stiff Competition - At present there are 15 life insurance companies and 14 general insurance companies in India. Because of the Liberalization of the economy it became easy for the private insurance companies to enter into the battle field which resulted in an urgent need to outwit one another. Even the oldest public insurance companies started facing the tough competition. Hence in order to compete with each other and to stay a step ahead there was a need for a new strategy in the form of Bancassurance. It would also benefit the customers in terms of wide product diversification. High cost of agents - Insurers have been tuning into different modes of distributionbecause of the high cost of the agencies services provided by the insurance companies. These costs became too much of a burden for many insurers compared to the returns they generate from the business. Hence there was a need felt for a Cost-Effective Distribution channel. This gave rise to Bancassurance as a channel for distribution of the insurance products. Rural Penetration - Insurance industry has not been much successful in rural penetration of insurance so far. People there are still unaware about the insurance as a tool to insure their life. However this gap can be bridged with the help of Bancassurance. The branch network of banks can help make the rural people aware about insurance and there is also a wide scope of business for the insurers. In order to fulfill all the needs bancassurance is needed.

Multi channel Distribution - Now a days the insurance companies are trying to exploit eachand every way to sell the insurance products. For this they are using
21

various distribution channels. The insurance is sold through agents, brokers through subsidiaries etc. In order to make the most out of Indias large population base and reach out to a worthwhile number of customers there was a need for Bancassurance as a distribution model.

Targeting Middle income Customer - In previous there was lack of awareness about insurance. Theagents sold insurance policies to a more upscale client base. Themiddle income group people got very less attention from the agents. So through the venture with banks, the insurance companies can recapture much of the under served market. So in order to utilize the database of the banks middle income customers, there was a need felt for Bancassurance.

Regulations for Bancassurance in India

1. RBI Norms for banks entering into Insurance

22

Sector.

2. IRDA Norms for Insurance companies tying up with Banks. 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

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% of the paid up capital of the insurance company. 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;
23

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% of the equity with the approval of Insurance Regulatory and Development Authority/Foreign Investment Promotion Board, more than one public sector bank or Joint

private sector bank may be allowed to participate in the equity of the venture. As such participants will also assume insurance risk, only those banks which satisfy the criteria given in paragraph 2 above, would be eligible.

4. A subsidiary of a bank or of another bank will not normally be allowed to join the insurance company on risk participation basis. 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 consecutive years.
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6. All banks entering into insurance business will be required to obtain 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 asnot pose any future threat to the bank in its present or the proposed activity, viz., insurance business. It should be ensured that risks involved in insurance business do not get transferred to the bank. There should be arms length relationship between the bank and the insurance outfit.

7. Holding of equity by a promoter bank in an insurance company or participation in any form in insurance business will be subject to compliance with any rules and regulations laid down by the IRDA/Central Government. This will include compliance with Section 6AA of the Insurance Act as amended by the IRDA Act, 1999, for divestment of equity in excess of 26 per cent of the paid up capital within a prescribed period of time.

8. Latest audited balance sheet will be considered for reckoning the eligibility criteria.

IRDA Norms for Insurance Companies

The Insurance regulatory development & Authority has given certain guidelines for the Bancassurance they are as follows: -

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1) Chief Insurance Executive: Each bank that sells insurance must have a chief Insurance Executive to handle all the insurance matters & activities.

2) Mandatory Training: All the people involved in selling the insurance should under-go mandatory training at an institute determined (authorized) by IRDA & pass the examination conducted by the authority.sets of the applicant bank so as to ensure that non-performing assets do.

3) Corporate agents: Commercial banks, including co-operative banks and RRBs may become corporate agents for one insurance company.

4) Issues for regulation: Certain regulatory barriers have slowed the development of Bancassurance in India down. Which have only recently been cleared with the passage of the insurance (amendment) Act 2002. Prior it was clearly an impractical necessity and had held up the implementation of Bancassurance in the country. As the current legislation places the following:1) Training and examination requirements: upon the corporate insurance executive within the corporate agency, this barrier has effectively been removed. Another regulatory change is published in recent publication of IRDA regulation relating to the (2) Licensing of Corporate agents (2 Specified person to satisfy the training & examination: According to new regulation of IRDA only the specific persons have to satisfy the training & examination requirement as insurance agent.

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SWOT ANALYSIS

27

Even though, banks and insurance companies in India are yet to exchange their wedding rings, Bancassurance as a means of distribution of insurance products is already in force in some form or the other. Banks are selling Personal Accident and Baggage Insurance directly to their Credit Card members as a value addition to their products. Banks also participate in the distribution of mortgage linked insurance products like fire, motor or cattle insurance to their customers. Banks can straightaway leverage their existing capabilities in terms of database and face to face contact to market insurance products to generate some income for themselves which hitherto was not thought of. Once Bancassurance is embraced in India with full force, a lot will be at stake. Huge capital investment will be required to create infrastructure

particularly in IT and telecommunications, a call centre will have to be created, top professionals of both industries will have to be hired, an R & D cell will be needed to create new ideas and products. It is therefore essential to have a SWOT analysis done in the context of Bancassurance experiment in India. The sale of insurance products can earn banks very significant commissions (particularly for regular premium products). In addition, one of the major strategic gains from implementing bancassurance successfully is the development of a sales culture within the bank. This can be used by the bank to promote traditional banking products and other financial services as well. Bancassurance enables banks and insurance companies to complement each others strengths as well.

STRENGTHS

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 In a country of 1 Billion people, sky is the limit for personal lines insurance products. There is a vast untapped potential waiting to be mined particularly for life insurance products. There are more than 900 Million lives waiting to be given a life cover (total number of individual life policies sold in 1998-99 was just 91.73 Million).

There are about 200 Million households waiting to be approached for a householder's insurance policy. Millions of people travelling in and out of India can be tapped for Overseas Mediclaim and Travel Insurance policies. After discounting the population below poverty line the middle market segment is the second largest in the world after China.

The insurance companies worldwide are eyeing on this, why not we pre-empt this move by doing it ourselves? Our other strength lies in a huge pool of skilled professionals whether it is banks or insurance

companies who may be easily relocated for any Bancassurance venture.

LIC and GIC both have a good range of personal line products already lined up; therefore R & D efforts to create new products will be minimal in the

beginning. Additionally, GIC with 4200 operating offices and LIC with 2048 branch offices are almost already omnipresent, which is so essential for the development of any Bancassurance project.

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WEAKNESSES The IT culture is unfortunately missing completely in all future collaborators i.e. banks, GIC & LIC. A late awakening seems to have dawned upon but it is a case of too late and too little. Elementary IT requirement like networking (LAN) is not in place even in the headquarters of these institutions, when the need today is of Wide Area Network (WAN) and Vast Area Network (VAN). Internet connection is not available even to the managers of operating offices. The middle class population that we are eyeing at are today overburdened, first by inflationary pressures on their pockets and then by the tax net. Where is the money left to think of insurance?

Fortunately, LIC schemes get IT exemptions but personal line products from GIC ( Mediclaim already has this benefit) like householder, travel, etc. also need to be given tax exemption to further the cause of insurance and to increase domestic revenue for the country. Another drawback is the inflexibility of the products i.e. It cannot be tailor made to the requirements of the customer.

For a Bancassurance venture to succeed it is extremely essential to have in-built flexibility so as to make the product attractive to the customer.

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OPPORTUNITIES Banks' database is enormous even though the goodwill may not be the same as in case of their European counterparts. This database has to be dissected variously and various homogeneous groups are to be churned out in order to position the Bancassurance products.

With a good IT infrastructure, this can really do wonders. Other developing economies like Malaysia, Thailand and Singapore have already taken a leap in this direction and they are not doing badly.

There is already an atmosphere created in the country for liberalisation and there appears to be a political consensus also on the subject. Therefore, RBI or IRA should have no hesitation in allowing the marriage of the two to take place.

This can take the form of merger or acquisition or setting up a joint venture or creating a subsidiary by either party or just the working collaboration between banks and insurance companies.

This is perhaps the precursor of a trend we have seen in

the United

Kingdom and elsewhere where banks started off as distributors of insurance but then moved to a manufacturing role with fully owned insurance subsidiaries.
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 THREATS Success of a Bancassurance venture requires change in approach, thinking and work culture on the part of everybody involved. Our work force at every level are so well entrenched in their classical way of working that there is a definite threat of resistance to any change that Bancassurance may set in.

Any relocation to a new company or subsidiary or change from one work to a different kind of work will be presented with vehemence.

Another possible threat may come from non-response from the target customers. This happened in USA in 1980s after the enactment of Garn - St Germaine Act. A rush of joint ventures took place between banks and insurance companies and all these failed due to the non-response from the target customers.

The investors in the capital may turn their face off in case the rate of return on capital falls short of the existing rate of return on capital. Since banks and insurance companies have major portion of their income coming from the investments, the return from Bancassurance must at least match those returns.

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 Also if the unholy alliances are allowed to take place there will be fierce competition in the market resulting in lower prices and the Bancassurance venture may never break-even.

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HSTORY OF STANDARD CHARTERED BANK 1969 to 2000 Both banks had acquired other smaller banks along the way and spread their networks further. In 1969, the banks decided to merge, and to counterbalance their existing network by expanding in Europe and the United States, while continuing their expansion in their traditional markets in Asia and Africa. In 1986 Lloyds Bank of the United Kingdom made a hostile takeover bid for the Group. The bid was defeated however it spurred Standard Chartered into a period of change, including a series of divestments notably in the United States and South Africa. In 1987 Standard Chartered sold its remaining interests in the South African bank, and since then the Standard Bank Group has been a separate entity. In 1992, scandal broke when banking regulators charged several employees of Standard Chartered in Mumbai with illegally diverting depositors funds t o speculate in the stock market. Fines by Indian regulators and provisions for losses cost the bank almost 350 million pounds, a third of its capital. Scandal erupted again in 1994, when the Sunday Times of London wrote that an executive in the banks metals-trading arm had bribed officials in Malaysia and the Philippines in order to win business. The bank, in a statement on 18 July 1994, said there were discrepancies in expense claims that included gifts to individuals in certain countries to facilitate business, a practice contrary to bank rules.' In 1997, Standard Chartered sold its metals trading arm to Toronto-based Scotia bank for $26 million. In 1994, the Hong Kong Securities and Futures Commission found that Standard Chartered Asian investment bank had illegally helped to artificially support the price of new shares they had underwritten for six companies from July 1991 to March 1993. The bank admitted the offense, apologized and
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reorganized its brokerage units. The commission banned the bank from underwriting IPOs in Hong Kong for nine months. Standard Charterers Asian investment banking operations never recovered, and in 2000 the bank closed them down. The bank fully recovered in late '90s, during this time, the bank sold off holdings in continental Europe and the Americas, sold the headquarters building (lease-back) and branch properties in Hong Kong. In 2000, Standard Chartered acquired Grind lays Bank & Chase Manhattan Bank Hong Kong retail banking business. The ethics issues and financial losses triggered turmoil in Standard Charterers London executive suite. The bank went through three CEOs in three years: Malcolm Williamson was replaced in 1998 by Rana Talwar, who was in turn unseated by Mervyn Davies in 2001. By the time Davies took over, his predecessors had systematically sold off the banks holdings in continental Europe and the Americas. Former CEO Talwar traces Standard Charterers troubles over the years to its failure to hire local talent. The Indian-born Citigroup Inc. veteran became the banks first non-British CEO when he was appointed in 1998.

2000 to present In 2000, Standard Chartered acquired Grind lays Bank from ANZ Bank, increasing its presence in private banking and further expanding its operations in India and Pakistan. Standard Chartered retained Grind lays' private banking operations in
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London and Luxembourg and the subsidiary in Jersey, all of which it integrated into its own private bank. This now serves high net worth customers in Hong Kong, Dubai, and Johannesburg under the name Standard Chartered Grind lays Offshore Financial Services. In India, Standard Chartered integrated most of Grind lays' operations, making Standard Chartered the largest foreign bank in the country. In 2004, Standard Chartered Bank and Astra International (An Indonesian conglomerate, a subsidiary of Jar dine Matheson Group) took over Permata Bank and in 2006, both shareholders increased their joint ownership to 89.01%. With 276 branches and 549 ATMs in 55 cities throughout Indonesia, Permata Bank has the second largest branch network in Standard Chartered organization. On 15 April 2005, the bank acquired Korea First Bank, beating HSBC in the bid. Since then the bank has rebranded the branches as SC First Bank. Standard Chartered completed the integration of its Bangkok branch and Standard Chartered Nakornthon Bank in October, renaming the new entity Standard Chartered Bank (Thailand). Standard Chartered also formed strategic alliances with Fleming Family & Partners to expand private wealth management in Asia and the Middle East, and acquired stakes in ACB Vietnam, Travelex, American Express Bank in Bangladesh and Bohai Bank in China. On 9 August 2006 Standard Chartered announced that it had acquired an 81% shareholding in the Union Bank of Pakistan in a deal ultimately worth $511 million. This deal represented the first acquisition by a foreign firm of a Pakistani bank and the merged bank, Standard Chartered Bank (Pakistan), is now Pakistan's sixth largest bank. On 22 October 2006 Standard Chartered announced that it had received tenders for more than 51 per cent of the issued share capital of Hsinchu
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International Bank (Hsinchu), established in 1948 in Hsinchu city in Taiwan. Standard Chartered, which had first entered Taiwan in 1985, acquired majority ownership of the bank. Prior to the merger, Hsinchu was Taiwan's seventh largest private sector bank by loans and deposits as at 30 June 2006, but had suffered extensive losses on defaulted credit card debt. Standard Chartered merged its existing three branches with Hsinchu's 83, and then delisted Hsinchu International Bank, changing the bank's name to Standard Chartered Bank (Taiwan) Limited. Today Standard Chartered is the largest foreign bank in Taiwan in terms of branch network. In 2007, Standard Chartered opened its Private Banking global headquarters in Singapore. On 23 August 2007 Standard Chartered entered into an agreement to buy a 49 per cent share of an Indian brokerage firm (UTI Securities) for $36 million in cash from Securities Trading Corporation of India Ltd., with the option to raise its stake to 75 per cent in 2008 and, if both partners agree, to 100 per cent by 2010. UTI Securities offers brokering, wealth management and investment banking services across 60 Indian cities. On 29 February 2008, Standard Chartered PLC announced it had received all the required approvals leading to the completion of its acquisition of American Express Bank Ltd (AEB) from the American Express Company (AXP). The total cash consideration for the acquisition is US$823 million.

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INTRODUCTION TO STANDARD CHARTERD BANK Standard Chartered PLC (LSE: STAN, SEHK: 2888, NSE: STAN) is a British multinational banking and financial services company headquartered in London, United Kingdom. It operates a network of over 1,700 branches and outlets (including subsidiaries, associates and joint ventures) across more than 70 countries and employs around 87,000 people. It is a universal bank and has operations in consumer, corporate and institutional banking and treasury services. Despite its UK base around 90% of its profits come from Africa, Asia and the Middle East. Standard Chartered has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately 33 billion as of 23 December 2011, the 13th-largest of any company with a primary listing on the London Stock Exchange. It has secondary listings on the Hong Kong Stock Exchange and the National Stock Exchange of India. Its largest shareholder is the Government of Singapore-owned Temasek Holdings. The name Standard Chartered comes from the two original banks from which it was founded and which merged in 1969 The Chartered Bank of India, Australia and China, and The Standard Bank of British South Africa. In the new millennium the bank acquired Grind lays Bank from the ANZ Group and the Chase Consumer Banking operations in Hong Kong in 2000. Since 2005, the bank has achieved several milestones with a number of strategic alliances and acquisitions that will extend their customer or geographic reach and broaden our product range.

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THE CHARTERED BANK Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853. Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859 Traditional business was in cotton from Mumbai (Bombay), indigo and tea from Calcutta, rice in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila and silk from Yokohama. Played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871. In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank's Cyprus Branches. This established a presence in the Gulf.

THE STANDARD BANK Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port Elizabeth, South Africa, in January 1863. Was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. Expanded in Southern, Central and Eastern Africa and by 1953 had 600 offices. In 1965, it merged with the Bank of West Africa expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone. In 1969, the decision was made by Chartered and by Standard to undergo a friendly merger. All was going well until 1986, when a hostile takeover bid was made for the Group by Lloyds Bank of the United Kingdom. When the bid was defeated, Standard Chartered entered a period of change. Provisions had to be
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made against third world debt exposure and loans to corporations and entrepreneurs who could not meet their commitments. Standard Chartered began a series of divestments notably in the United States and South Africa, and also entered into a number of asset sales. From the early 1990s, Standard Chartered has focused on developing its strong franchises in Asia, the Middle East and Africa using its operations in the United Kingdom and North America to provide customers with a bridge between these markets. Secondly, it would focus on consumer, corporate and institutional banking and on the provision of treasury services - areas in which the Group had particular strength and expertise.

SERVICES PROVIDED BY STANDARD CHARTERED BANK We can ensure our peace of mind with a wide range of General Insurance products available conveniently at Standard Chartered Bank in association with Bajaj Allianz Life Insurance. SCB protects us and our family, as well as our hard earned assets and future

earnings. To take care of all our insurance requirements, SCB bring you a variety of products from Bajaj Allianz Life Insurance Company. SCB offers: One-stop shopping for both life and general insurance protection Comprehensive range of products to suit every stage of your life... from childhood to retirement

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 Trained & certified professionals guide us in ascertaining our insurance needs and assist us in making an insurance plan that is just right for us.

At Standard Chartered Bank they have a comprehensive range of products & services to protect your world Life Insurance General Insurance

Standard Chartered offers us a wide range of Life Insurance Products from Bajaj Allianz Life Insurance Company, one of India's leading Insurance companies. At Standard Chartered, we can avail of the services of trained& certified professionals, who can guide us in ascertaining our insurance needs, and assist us in making an insurance plan that is just right for us. REASONS FOR BANKS ENTERING INSURANCE IN INDIA Indian insurance market is a hidden goldmine an estimated Rs. 1, 80,000 crore in terms of annual insurance premium. Sale of insurance through banks will meet an important set of consumer needs.

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 Banks branch network allows face to face contact that is so important in the sale of insurance. Bank channel can also boost sales productivity. Banks are best qualified to sell insurance products. They have a wide distribution reach. Because of the strong ties with the customers they are in a better position to sell insurance products to them. Banks can provide integrated financial services under one roof to their customers. Another main advantage in tapping the banks retail distribution network is cutting the cost of distribution by almost 30%. As some of the studies revealed that 50% of an insurers cost structure is directly or indirectly related to distribution. Though insurance companies are good underwriters of risk, they are not too well known for their expertise in investment management. On the other hand, banks are generally perceived to be not good at managing risk but they are perceived to be better at investment management. Bancassurance is about bringing the two attributes together. According to reliable research sources, bancassurance salesman has a much faster learning curve, usually around two years as compared with four and a half years in an insurance company. In that sense, the cost of training is amortized over a shorter period of time and therefore turns-out cheaper. Valid reasons why banks should allow insurance salesman to sell insurance products in their premises: a. Bank gets a royalty or a commission for every insurance policy sold. b. The bank gets an investment management fee for managing the insur ers investment.
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c. Insurance products, like retirement and pension plans, are growth areas for banks. With greater need to downsize - banks can utilize their existing surplus manpower reducing costs and optimum use of infrastructure. Instant access to 60,000 + bank branches including in remote areas. Availability of insurance in rural areas, through cost effective banking channels.

As banks are increasingly resorting to alternate delivery channels, surplus space would be available to distribute insurance products.

SOME OF THE KEY LIFE INSURANCE PRODUCTS

UNIT LINKED INSURANCE PLANS

Market linked insurance plans invest the premium in to the equity, debt and cash markets by the way of allocating units, which like any other mutual fund have a NAV and the customer is free to switch between one fund class to another depending on the risk factor he wishes to be in. ULIPs offer a better return than the traditional endowment plans and offer a great deal of flexibility along with great returns making them the finest product offering. Bajaj Allianz Life Insurance have developed a number of Unit Linked Insurance ULIP products which range from single premium to a regular premium option along with investment funds ranging from index funds to mid-cap funds and debt market linked funds.
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 Regular Premium I Gain III Max Advantage Insurance Plan Money Secure Insurance Plan Assured Protection Insurance Plan Single Premium Guaranteed Maturity Insurance Plan Wealth Insurance Plan Shield Insurance Plan Flexi Advantage Insurance Plan

TRADITIONAL PLANS

Saving Plans that offer bonus are completely safe and are ideal for long term investments. Our products offer additional benefits including 4 times life cover at little extra costs, limited premium payment terms and compounded reversionary bonuses. These features make our traditional plans excellent long term saving instruments. Endowment Invest Gain Save Care Economy SP Life Time Care Super Saver Money Back
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 Cash Rich Insurance Plan Super Cash Gain Insurance Plan Cash Gain Child Gain

PENSION PLANS

Bajaj Allianz Life Insurance offer Pension Plans which will make sure that we are there to support you in every stage of your life and your savings in pension plan insurance today become your wealth and support for your future years to come. LIFE + HEALTH INSURANCE FOR HOSPITALIZATION

At Bajaj Allianz Life Insurance we offer unique hospitalisation-cum-insurance plan that takes care of your hospitalization bills and also provides crucial financial support to your dependents in case of your unfortunate death. Our health insurance plans offer a sound protection to safe guard your family from any medical emergencies and will make sure that financial problems are least of your worries in trying to get yourself treated. We offer cash less Mediclaim facility across 2000 hospitals in over 300 towns and provide best treatment in the finest hospitals with our health insurance products. Health Care Family CareFirst
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 TERM INSURANCE PLANS

The sole objective of Term insurance policy is to serve the protection needs of the customers and by doing so, safeguard one's family from the financial implications of unfortunate circumstances that one cannot foresee. These term insurance plans are pure risk cover plans with or without maturity benefit. These pure risk plans cover your life at a nominal cost and you may want to take this term insurance plan to cover your outstanding debts like a mortgage, a home loan etc. Protector Term Care New Risk Care II iSecure Insurance Plan iSecure Loan Insurance Plan

WOMEN INSURANCE PLANS To cater to women's special needs we offer innovative women

specific plans which provide investment benefits, savings, retirement solutions and medical insurance? Our special plans help mothers plan for their childrens education saves for the future and take care of all medical emergencies in the family.

Regular investment and savings plan, offer:

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 Investments along with critical illness benefits which provide good returns, long term saving and protection in case of a medical emergency Investment plans with accidental coverage Children's education planning Specialized retirement income plans for homemakers to provide a secure and financial future.

BANCASSURANCE BUSINESS CONDUCTED BY COs

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CURRENT SCENARIO While bancassurance is a success story in Europe and other offshore markets, it is still in its nascent stage in India. We examine the challenges and opportunities for these products in India. In its simplest form, bancassurance is distribution of insurance products through a banks branch network. Hence, there is a room for bancassurance where banking and insurance congregate with each other. To be clear, a bank selling insurance products, and an insurance company, which is involved in banking activity can get into bancassurance. To symbolize this congregation bancassurance is also referred to as Allfinanz. Bancassurance assumes different forms in different countries based on the demographic factors of the country. In a way these demographic factors are the key variables that create challenges and opportunities in each country. Why congregate? Banks over a period of time might have developed a relationship with the customers and have unique identification in the minds of people. Also, banks have a wide branch network, spreading across the nook and corner. Banks have got a huge database of customers spread across the geographic region, in which they operate. If an insurance company had to develop all these strengths it would consume a large amount of resources and time. Hence, the best option for these companies would be to get in touch with these banks. It is beneficial even for banks as it brings in a new source of income in the form of service charges. Over the years, the regulatory glitches in the process of amalgamation of bank and insurance have reduced in number. These regulatory and other monetary benefits
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for the parties involved have ensured a rise in the use of bancassurance. As of 2004, bancassurance represented over 65% of the total life insurance premium in Spain, 60% in France and 50% in Italy and Belgium. Nevertheless, in comparison with life insurance products, non-life products, especially Property and Casualty (P&C) products are yet to pick up speed. In the aforementioned countries, a negligible amount of business comes from bancassurance. For instance, in Spain, just 6% of P&C business comes from bancassurance. In Belgium and France 5% and 4% is respectively contributed by bancassurance.

TRENDS

The Trends which were seen in Bancassurance are: Though bancassurance has traditionally targeted the mass market, but bancassurers have begun to finely segment the market, which has resulted in tailor-made products for each segment.

Some bancassurers are also beginning to focus exclusively on distribution. In some markets, face-to-face contact is preferred, which tends to favor bancassurance development.

Nevertheless, banks are starting to embrace direct marketing and Internet banking as tools to distribute insurance products. New and emerging
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channels are becoming increasingly competitive, due to the tangible cost benefits embedded in product pricing or through the appeal of convenience and innovation.

Bancassurance proper is still evolving in Asia and this is still in infancy in India and it is too early to assess the exact position. However, a quick survey revealed that a large number of banks cutting across public and private and including foreign banks have made use of the bancassurance channel in one form or the other in India.

Banks even offer space in their own premises to accommodate the insurance staff for selling the insurance products or giving access to their clients database for the use of the insurance companies.

CHALLENGES Banks could be more enduring than individual agents when selling insurance, but bancassurance relationships are not. Since the opening up of the insurance sector in 2000, as many as six bancassurance alliances have ended in divorce says Economic Times. If bancassurance was termed as marriage between banks and insurance, then the probability of divorces cant be ruled out. Critics opine that bancassurance is a controversial idea, and it gives banks too great a control over the financial industry. The challenge to sustain such alliances could be immensely daunting. The
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difference in regulation, not only across countries but between banks and insurance industry as well has been cited as the primary reason. The difference in trade customs, work culture in these industries is another impediment. Human Resource Management has experienced some difficulty due to such alliances in financial industry. Poaching for employees, increased work-load, additional training, maintaining the motivation level are some issues that has cropped up quite occasionally. So, before entering into a bancassurance alliance, just like any merger, cultural due diligence should be done and human resource issues should be adequately prioritized. Private sector insurance firms are finding change management in the public sector a major challenge. State-owned banks get a new chairman, often from another bank, almost every two years, resulting in the distribution strategy undergoing a complete change. In the private sector, the M&A activity is one of the causes for change.

FUTURE SCOPE FOR BANCASSURANCE By now, it has become clear that as economy grows it not only demands stronger and vibrant financial sector but also necessitates providing with more sophisticated and variety of financial and banking products and services. The outlook for bancassurance remains positive. While development in individual markets will continue to depend heavily on each countrys regulatory and business environment, bancassurers could profit from the tendency of governments to privatize health care and pension liabilities.

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India has already more than 200 million middle class population coupled with vast banking network with largest depositors base, there is greater scope for use of bancassurance. In emerging markets, new entrants have successfully employed bancassurance to compete with incumbent companies. Given the current relatively low bancassurance penetration in emerging markets, bancassurance will likely see further significant development in the coming years. In India the bancassurance model is still in its nascent stages, but the tremendous growth and acceptability in the last three years reflects green pasture in future. The deregulation of the insurance sector in India has resulted in a phase where innovative distribution channels are being explored. In this phase, bancassurance has simply outshined other alternate channels of distribution with a share of almost 25-30% of the premium income amongst the private players.

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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, a diverse 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 long inning. But the proper implementation of bancassurance is still facing so many hurdles because of poor manpower management, lack of call centers, and no personal contact with customers, inadequate incentives to agents and unfulfillment of other essential requirements.

CONCLUSION:
With the opening up of insurance sector and with so many players entering the Indian Insurance Industry it is required by Insurance Companies to come up with well established infrastructure facilities with good call centre service to attract and provide information to customer regarding different good policies & their premium pay scheme.

The life Insurance Industry in India has been progressing at a rapid growth since opening up of the sector. The size of country, a diverse set of people combined
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with problems of connectivity in rural areas, makes insurance selling in India is a very difficult task. Life Insurance Companies require good distribution strength and tremendous man power to reach out such a huge customer base.

Where legislation ahs allowed bancassurance had mostly been a phenomenal success and although slow to gain pace, is now taking of across Asia, especially now that banks are starting to become more diverse financial institution and the concept of universal banking is being adopted.

In the field of bancassurance banks will bring a customer database, leverage their name, recognition & reputation of both local and regional levels. If they are using personal contact with customers and non-customers then only they can success in the field of bancassurance.

But the proper implementation of bancassurance is still facing so many hurdles because of poor manpower management, lack of call centers, no personal contact with customers, inadequate incentives to agents and unfullfilment of other essential requirements.

Finally we can say that the bancassurance would mostly depend on how well insurers and bankers understanding is with each other and how they are capturing the opportunity and how better service they are providing to their, customers. Let us you all pay more attention towards the policies and enjoy the service provide by banks and Insurance Companies by the mode of Bancassurance. And finally I am warm welcoming to all the professionals in this field.

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