1. BANCASSURANCE
PRESENTED BY :ANANT GARG

2. INTRODUCTION

BANCASSURANCE IS THE CONVERGENCE OF
THE 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.

3. WHAT IS BANCASSURANCE

DISTRIBUTION OF INSURANCE PRODUCTS
THROUGH BANK’S DISTRIBUTION CHANNEL.

IT IS BASICALLY SELLING INSURANCE
PRODUCTS AND SERVICES BY LEVRAGING
THE VAST CUSTOMER BASE OF A BANK AND
FULFILLS THE BANKING AND INSURANCE
NEEDS OF THE CUSTOMERS AT THE SAME
TIME.

4. BANCASSURANCE IN INDIA

IN THE YEAR 2002 THE BANKS OF INDIA WERE
PERMITTED TO DO INSURANCE BUSINESS
FOR THE FIRST TIME.

IT WAS REGULATED BY BOTH RBI AND IRDA AS
IT IS COMBINATION OF BANK AND INSURANCE.

5. NEED OF BANCASSURANCE IN
INDIA

TO IMPROVE THE CHANNELS THROUGH WHICH
INSURANCE POLICY ARE SOLD/MARKED SO AS TO
MAKE THEM REACH THE HANDS OF COMMON MAN

TO WIDEN THE AREA OF WORKING OF BANKING
SECTOR HAVING A NETWORK THAT IS SPREAD
WIDELY IN EVERY PART OF THE NATION.

TO IMPROVE SERVICES OF INSURANCE BY
CREATING A COMPITATIVE ATMOSHPHERE AMONG
PRIVATE INSURANCE COMPANIES IN MARKET

6. RBI GUIDELINE FOR
BANCASSURANCE



JOINT VENTURE WILL BE ALLOWED FOR
FINANCIALLY STRONG BANKS WISHING TO
UNDERTAKE INSURANCE BUSINESS WITH RISK
PARTICIPATION.
FOR BANKS WHICH ARE NOT ELIGIBLE FOR THIS
JOINT VENTURE OPTION, AN INVESTMENT OPTION
OF UP TO 10% OF THE NET WORTH OF THE BANK
OR Rs. 50 CRORE, WHICH EVER IS LOWER, IS
AVALIABLE.
ANY COMMERCIAL BANK WILL BE ALLOWED TO
UNDERTAKE INSURE BUSINESS AS AGENT OF
INSURANCE COMPANIES. THIS WILL BE A FEE
BASIS WITH NO RISK PARTICIPATION.

7. IRDA GUIDELINE FOR
BANCASSURANCE




EACH BANK THAT SELLS INSURANCE MUST HAVE A
CHIEF INSURANCE EXECUTIVE TO HANDLE ALL
THE INSURANCE ACTIVITIES;
ALL THE PEOPLE INVOLVED IN SELLING SHOULD
UNDER-GO MANDATORY TRAINING AT AN
INSTITUTE ACCREDITED BY IRDA AND PASS THE
EXAMINATION CONDUTED BY THE AUTHORITY;
COMMERCIAL BANKS MAY BECOME THE
CORPORATE AGENTS FOR ONE INSURANCE
COMPANY.
BANKS CANNOT BECOME INSURER BROKER.

8. ADVANTAGE FOR THE
BANKS
REVENUE DIVERSIFICATION
 SATISFACTION OF MORE FINANCIAL NEEDS
UNDER THE SAME ROOF
 CUSTOMER RETENTION-INCREASE IN
CUSTOMER LOYALITY
 MORE PROFITABLE RESOURCE UTILIZATION
 ENRICHED WORK ENVIORMENT
 ESTABLISH SALES ORIENTED CULTURE


9. ADVANTAGE FOR THE
INSURANCE COMPANIES
REVENUE AND CHANNEL DIVERSIFICATION
 QUALITY CUSTOMER ACCESS
 QUICKER GEOGRAPHICAL REACH CREATION
OF BRAND EQUITY
 INCRESE IN VOLUME AND PROFIT
 IMPROVED BRAND EQUITY


10. ADVANTAGE FOR THE
CUSTOMER
ENHANCED CONVENIENCE
 ONE STOP SHOPPING FOR ALL FINANCIAL
SERVICES
 INNOVATIVE AND BETTER PRODUCT RANGES
 MORE CREDIBLE SOLUTION


11. BANCASSURANCE COMPANIES
SBI LIFE INSURANCE COMPANIES
 LIC IS TIED UP WITH VIJAY BANK, ORIENTAL
BANK OF COMMERCE AND CORPORATION
BANK
 ICICI LOMBARD
 AXIS BANK – METLIFE INDIA


12. CONCLUSION

FOR BANK IT JUST ACTS AS A MEANS OF PRODUCT
DIVERSIFICATION AND ADDITIONAL FEE INCOME;

FOR INSURANCE IT ACTS AS A TOOL FOR
INCREASING THEIR MARKET PENETRATION AND
PREMIUM TURNOVER

FOR CUSTOMER IT ACT AS A BONAZA IN TERMS OF
REDUCED PRICE, HIGH QUALITY PRODUCTS AND
DELIVERY TO DOORSTEPS
 SO
EVERYBODY IS WINNER HERE