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    Bank Assurance Assgmnt

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    Sanal Vr
    The document discusses bancassurance, which is the distribution of insurance products through banks. It defines bancassurance and outlines the major models. It also discusses the advantages and disadvantages for banks and insurance companies, as well as a SWOT analysis and some major bancassurance alliances in India.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Bank Assurance Assgmnt

    Uploaded by

    Sanal Vr
    84 views12 pages
    The document discusses bancassurance, which is the distribution of insurance products through banks. It defines bancassurance and outlines the major models. It also discusses the advantages and disadvantages for banks and insurance companies, as well as a SWOT analysis and some major bancassurance alliances in India.

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    The document discusses bancassurance, which is the distribution of insurance products through banks. It defines bancassurance and outlines the major models. It also discusses the advantages and disadvantages for banks and insurance companies, as well as a SWOT analysis and some major bancassurance alliances in India.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    84 views12 pages

    Bank Assurance Assgmnt

    Uploaded by

    Sanal Vr
    The document discusses bancassurance, which is the distribution of insurance products through banks. It defines bancassurance and outlines the major models. It also discusses the advantages and disadvantages for banks and insurance companies, as well as a SWOT analysis and some major bancassurance alliances in India.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12

    BANKING SERVICES

    Bancassurance
    BY
    SANAL VR & SAJU SULAIMAN

    Introduction

    Contents

    What is Bancassurance
    Bancassurance in India
    Bancassurance Models
    Advantages and Disadvantages
    Merits & Demerits
    SWOT Analysis

    Introduction
    Bancassurance is the convergance of Banking
    & Insurance businesses. Also known as
    allfinanz
    Developed in Europe , France
    Major Global Players Include ING, Allianz , BNP
    Paribas , Credit Agrecole , ABN Amro etc..
    In Asia , Singapore , Taiwan and Hong Kong
    are ahead in bancassurance , with India and
    China taking tentative steps towards it.
    Banned in US by the Glass Steagall
    Act( 1933) till the year 1999
    3

    What is bancassurance
    Distribution of insurance products through
    the banks distribution channels
    As per IRDA: bancassurance refers to
    banks acting as corporate agents for
    insurers to distribute insurance products
    Basically , selling insurance products and
    services by leveraging the vast customer
    base and distribution channels of the
    bank, to fulfill the banking and insurance
    needs of customers simulateneously.
    4

    Bancassurance In India
    In 2002 , banks in India were permitted to
    do insurance business for first time .
    In India the bancassurance is regulated by
    the IRDA and Reserve Bank of India jointly
    A Win- Win Strategy
    In India , major drivers of bancassurance
    has been the banks and companies form
    the private sector
    5

    Bancassurance Models
    Three major bancassurance models :

    Strategic Alliance: Under a strategic alliance, there is a tie-up


    between a bank and an insurance company. The bank only
    markets the products of the insurance company.

    Full Integration: This arrangement entails a full integration of


    banking and insurance services. The bank sells the insurance
    products under its brand acting as a provider of financial
    solutions matching customer needs. Bank controls sales and
    insurer service levels including approach to claims

    Mixed Models: Under this approach, the marketing is done by


    the insurer's staff and the bank is responsible for generating
    leads only. In other words, the database of the bank is sold to the
    insurance company. The approach requires very little technical
    investment.
    6

    Bancassurance : Advantages for


    Banks
    Diversification
    Increase revenue
    Satisfaction of more financial needs under
    same roof
    Increased customer loyalty / Interaction
    Better resource utilization
    Enriched work environment
    Sales oriented culture

    Bancassurance : Advantages for


    Insurance Comapanies
    Access to the large customer base of the
    bank
    Quality customer availability
    Use of the large and existing distribution
    network / branches of the bank
    Reduced costs
    Improved Brand Equity
    Increase in volumes and profits
    8

    Bancassurance : Merits and


    Demerits

    Enhanced Convenience
    One stop shopping for all needs
    Innovative and Better products
    Credibility of Bank

    Compromise on Data Security


    Conflict of Interest between the Banking
    and Insurance Products
    Drop in Quality of Service by Banks
    Leak of personal info/ privacy issues
    9

    Bancasurance : SWOT Analysis


    Strengths

    Weaknesses

    Vast untapped market

    Lack of networking among


    branches

    Huge pool of skilled


    professionals

    Saving ability of middle


    class

    Opportunities

    Threats

    Data mining - STP

    HR Challenges

    Wide distribution network

    Non response from Target


    group

    10

    Bancasurance : Some major


    alliances in India
    SBI with SBI Life & BNP Paribas Assurance
    Canara Bank with HSBC Insurance &
    Oriental Bank of Commerce
    Vysia Bank with ING Ins.
    Bank of India with Star Health Ins.
    LIC with Corporation Bank , IOB , Centurion
    Bank, Vijaya Bank & OCB
    Bajaj Allianz Ins Co with Karur Vysia and
    Lord Krishna Banks
    United India Insurance Co with South
    Indian Bank
    11

    END

    12

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