PRESENTATION

ON
BANCASSURANCE

PRESENTED BY-

HARSHIT PAREEK
MS INSURANCE ,NLU

INTRODUCTION

Bancassurance is the convergence of

Banking and Insurance

It was developed in Europe *.

In Asia Singapore, Taiwan and Hong Kong

are ahead in Bancassurance , with India
and China taking tentative steps towards
it.

WHAT IS BANCASSURANCE ?
Distribution of insurance products through
the bank's distribution channel.
It is basically selling insurance products
and services by leveraging the vast
customer base of a bank and fulfills the
banking and insurance needs of the
customers at the same time.

BANCASSURANCE IN INDIA
In India banking and insurance sectors are
regulated by two different entities.
The banking sector is governed by
Reserve Bank of India (RBI) and the
insurance sector is regulated by
Insurance Regulatory and
Development Authority (IRDA).

Cont..
RBI recognized the need of an effective
method to make insurance policies reach
people of all economic classes in every
corner of the nation.
Insurance companies proposed 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.

Cont..

In India major driver of Bancassurance

has been the private sector companies
both in the bank as well as in the
insurance.

JOINT VENTURES
SBI Life Insurance Company Limited
Joint venture between the State Bank of
India and BNP Paribas Assurance
registered with IRDA on 30.03.2001
Share Holdings
1. State Bank of India
--- 74%
2. BNP Paribas Assurance --- 26%.

Canara HSBC Oriental Bank of

Commerce Life Insurance Company
Limited, reg. on 6th of June, 2008
Share Holdings
1. Canara Bank
2. HSBC Insurance
(Asia Pacific) Holdings Ltd
3. Oriental Bank of Commerce

- 51%
- 26%
- 23%

Some other tie ups are :

Insurance Company

Life Insurance Corporation of India

Bank
Corporation Bank, Indian Overseas
Bank, Centurion Bank, Vijaya Bank,
Oriental Bank of Commerce etc

National Insurance Co. Ltd.

City Union Bank

United India Insurance Co. Ltd

South Indian Bank

Bajaj Allianz General Insurance Co.

Ltd

Karur Vysya Bank and Lord Krishna

Bank

ICICI Prudential Life Insurance Co

Ltd.

ICICI Bank, Bank of India, Citibank,

Federal Bank, and Punjab and
Maharashtra Co-operative Bank.

HDFC Standard Life

Union Bank of India

Advantages for the insurance

company :
Through this new distribution network,
the insurance company significantly
extends its customer base and enjoys
access to customers who were previously
difficult to reach.
An insurance company can establish itself
more quickly in a new market, using a
local banks existing network.

Advantages for the banks :

The bank sees bancassurance as a way of
creating a new revenue flow and
diversifying its business activities.
The bank becomes a sort of
supermarket, a one-stop shop for
financial services, where all customers
needs whether financial or insurancerelated can be met.

DEMERITS OF
BANCASSURANCE
Compromising on data security.
Conflict of interest between the

other products of bank and

insurance policies.
Better approach and services

provided by banks to customer is a

hope rather than a fact.

Conclusion:
For banks it just acts as a means of
product diversification and additional fee
income;
for insurance company it acts as a tool
for increasing their market penetration
and premium turnover and
for customer it acts as a bonanza in
terms of reduced price, high quality
products and delivery to doorsteps. So
every body is a winner here.