Page 25 - Insurance Times June 2023

Does

Bancassurance

have a future in

Venkatesh Ganapathy
BSc (Tech). MBA. Diploma in SCM.FIII.,
India Associate Professor (Marketing)

Presidency Business School, Bangalore

Bancassurance offers several benefits for both insurers and banks, as well as for customers. Banks
have an extensive network of branches and customer base, which can be leveraged by insurers
to reach out to a wider audience and increase their distribution network.

Introduction customers. Bancassurance allows insurers to leverage the
extensive network and customer base of banks, while banks
India has a large and growing population of over 1.3 billion
can generate additional revenue streams by offering
people. With a low insurance penetration rate, there is a
insurance products to their customers.
huge potential for the insurance industry to grow in India.
According to a report by PwC, the Indian insurance industry
History of Bancassurance
is expected to grow at a CAGR of 15% from 2020 to 2025,
driven by a growing middle class, rising disposable income, The origins of bancassurance can be traced back to France
and increasing awareness about insurance products. in the 19th century, where banks and insurance companies
began working together to offer insurance products to bank
Bancassurance, which is the selling of insurance products customers. The term "bancassurance" was coined in the
through banking channels, has seen significant growth in 1980s in France, where banks and insurers joined forces to
India in recent years. While the concept is still relatively new form bancassurance partnerships. These partnerships
in India compared to other countries, it has gained popularity allowed banks to offer insurance products to their
and is expected to have a promising future. customers, while insurers could leverage the extensive
distribution networks of banks to reach a wider audience.
Bancassurance is a distribution channel in the insurance
industry where insurance products and services are sold The concept of bancassurance then spread to other
through banks or other financial institutions. This means that European countries such as Belgium, Italy, Spain, and
banks act as intermediaries between insurance companies Portugal, where it became an important distribution
and their customers, offering insurance products such as life channel for insurance products. In the 1990s, bancassurance
insurance, health insurance, and general insurance to their expanded to Asia, with countries like Japan, Korea, and

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