Bancassurance in India- success or failure

It is too early to judge success of Bancassurance(s).

--  In India coverages of population by insurances is too low, Bancassurance may do a help

--  Often greedy Insurance agents have mis-sold Insurance - in Bancassurance such chances are negligible

--  Banks view the commission earned ( as Corporate Agent) as their "Other Income" - no individual is benefitted, a nobel idea

--  Where there is even not a Post Office in rural areas, Banks have their branches - Insurance may reach such areas ( imagine the plight of Bank staff in such places .. !! )

--  Insurance houses, directly or indirectly, encourage their agents to earn first year commission- thus policy holders dont get hold of agents for the second time - in case of Banks that is not possible

A good way of increasing non fund based income and considering that the IRDA is going to further relax norms in the Insurance sector, this is a sector which will definitely grow in the future. Also customers are looking at one stop shop where they can meet their financial as well as investment needs and Banks are increasingly becoming financial megamarts.

Although all we know that every discussion point have their unlimited ends. Same here Bancassurance in India has many discussion points i.e. (1) Selling (2) Awareness (3) Area (4) Services (5) Relationship and many more... A short discuss on all:-

Selling insurance in banks more easy than retail insurance sale centres. 

Banking people aware about all financial gadgets,experienced salesman we can say & able to differentiate between different products(policies)

Although there are many Insurance retail centers but all we know that banks has more branches more coverage than any insurance branch.

In bancassurance, customer can meet with employee any time after investment in bank whereas insurance agents less reachable in current scenerio we can understand why ??

Bank employee want good & long  relationship with client because here is not only one product (Insurance) for selling all other banking products with MF also are available.

In banks we have some ideas about the financial position of customer also which is also a major part of selling........ 

Nikil, good debate.....

Bancassurance is a success for the insurance industry. As we all know selling a insurance is the most toughest job and this concept has reduced it difficulty. Because 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. And ate the same time the Insurance Company can increase their business through the banking distribution channels because the banks have so many customers.

So it is a success ............