Bancassurance in India

Background The opening up of the insurance industry to underground orbit participation in December 1999 has led to the accounting entry of 20 hot players, with 12 in the life insurance argona and eight in the non-life insurance sector. Almost without exception these companies atomic number 18 seeking to utilise multiple distribution packs such(prenominal) as handed-down agency, bancassurance, brokers and direct marketing. Bancassurance is seen by many to be a of import or even the primary channel (the latter macrocosm the case for at least SBI Life). In separate Asian markets we have seen bancassurance make significant headway in upstart times. For example, bancassurance accounted for 24% of new life insurance gross sales by weighted premium income in Singapore in 2002. This is a significant increase on the equivalent 2001 statistic of 15% and is as a result of growth in significant bank-centric bancassurance operations. In Hong Kong the figure for 2002 is expected to be at the 20% ready for the same basic reasons. Why bancassurance in India? The management of the new Indian operations is conscious of the need to grow promptly to decrease painful start-up expense overruns. Banks with their huge networks and large customer asss nurse insurers an opportunity to do this efficiently. Regulations requiring certain proportions of sales to the slubbed and loving sectors come about an added impetus to the drive for bancassurance. selling through traditional methods to these sectors can be inefficient and expensive. bind up with a bank with an appropriate customer base can give an insurer relatively cheap gravel to such sectors. This is tranquil an issue for insurers despite the recent broadening of the definition of the rural sector (so that it now accords with the census definition). In India, as elsewhere, banks are perceive margins decline sharply in their core lending business. Consequently, banks are... If you essential to get a acros! s-the-board essay, order it on our website: OrderCustomPaper.com

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