Yes it will effect in large amount.Prakashraj has said truly that most of the bank has tied up with insurance companies.If now those bank will start their own insurance segment then insurance companies will run in loss.Centurion bank of punjab has tied up with AVIVA,when CBOP got merged with HDFC bank,AVIVA had to go away from tie up,as because HDFC bank already has insurance division named HDFC life.
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roumi chatterjee, asst commercial executive, century plyboard india ltd
| 12 22 2009 09:41:17 +0000
people has more faith on banking sector,then insurance .if more people know about insurance this is only only for banking sectors due to banncassurance or crosseling.market penetratoion of insurance product is possible only after tie up with RRB & other branches which are at village areas.villagers don't have any faith or idea about insurance,so if insurance will exist it will be posible in urban not at rural areas.
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sarita kar, MBA student, IMIS bhubaneswar
| 12 21 2009 18:57:43 +0000
Yes, It will effect the insurance companies. As it has already been told most insurance companies have tie ups with banks, with this type of approach, customer now would preferably approach banks for insurance not to the companies which will reduce their number of customers...
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Jithesh Ramesh, Actuary Manager, Tata Aig Insurance Solutions
| 09 02 2009 07:32:24 +0000
Banks starting own insurance products – new info for me thanks prakashraj sir, From what you have said I join you, many of the insurance companies have tie ups with banks for marketing and selling their products. So they have good exposure and can leverage on their existing infrastructure. Also many banks have better network and reach and are more welcome especially in rural areas, reason for bancassurance. Completion from banks will be a challenge, if they are really into it. But so far they have been only selling and not structuring or managing insurance products and this can be difficult for the banks with banking business getting complex day by day and having enough challenges to offer. With many insurance companies yet to break even and really worried about their profit figures I agree with you, But are they really into it?
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Padmanabhan R, Articled / Audit assistant, Finance student
| 08 30 2009 04:53:08 +0000
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LIC of India is a tough brand and has survived the onslaught of private insurers successfully. The brand has amply projected that it can change, adapt and innovate to get new consumers and retain the old loyalists. Banking in insurance is not really new today. ICICI 7 HDFC have been in the insurance business since a decade or more maybe. So I do not really think if they will really affect the older guys. At best the companies that do not have the customer base might sell out to the larger fish merging its business and making it a bigger conglomerate. With the changing economic scenario and salaries going North, insurance would and will always be a sector that helps in investemnts being saved under the insurance act and eventually saving itax.
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Makrand Bhave, AGM - Corporate Business, E18, part of Network 18 Group
| 12 23 2009 09:26:01 +0000
To my knowledge, right now banks are not allowed to do insurance business directly, indirectly as agents they can be. They can flot a subsidiary company innorder to run insurance business, like in the case of SBI life. Multinational insurance companies may not effect mearly because of the introduction of new insurance company in the field of said business, will be absorbed universally. IRDA regulates insurance business, regulating authority shall fix merger, acquisition and amalganation norms amoung domestic insurance companies, even otherwise according to me large domestic insurance companies will not be effcted by any such factors. Only in the case small new insurance companies without having earlier business backup may suffer.
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RAMANATHA PRABHU N, Chartered Accountant
| 12 23 2009 06:38:35 +0000
Any competition to make it more healthier, new entrants are very much required. I believe more the new entrants more clarity is formed in the market , which is really good for the general public for better investment. However, any new entrant will affect the existing ones but dont think would afftect effectively until the services and products of the new are much more competative.. as the one which is already there would have created a market share and its brand which i feel should be more a threat to the new ones... So i dont think its a threat to the old ones by the new entrants in the market..... Thank you, Manish N Cheers!!
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Manish N Chugh, Officer Trainee, Stock Holding Corporation of India ltd.,
| 12 22 2009 06:48:23 +0000
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